New Jersey Office Vacancy Drops to 24.5% as Class A Leads Rebound
JLL says North and Central NJ office vacancy fell to 24.5% in Q3 2026, lowest since 2022, after a sixth straight quarter of positive absorption.
Data center construction sits at the intersection of the artificial intelligence boom and the physical limits of land, power, and community tolerance. As cloud providers and AI companies race to add computing capacity, developers are breaking ground on massive server farms that demand enormous amounts of electricity and water, often in suburban and rural communities unaccustomed to industrial-scale infrastructure projects.
This topic matters now because the pace of construction has collided with mounting local resistance. Hundreds of municipalities have moved to restrict, pause, or study these projects, citing concerns over strained power grids, noise, water use, and property values. That backlash is reshaping how developers site, design, and pitch new facilities, and it's forcing utilities and regulators to rethink long-term power planning. At the same time, the broader commercial real estate sector is undergoing its own realignment, as office buildings convert to housing and investors weigh where data centers fit into portfolios amid volatile REIT performance.
Readers will find coverage here of zoning fights and moratoriums, utility and grid capacity constraints, financing and REIT activity tied to data center assets, and the shifting economics of where and how these facilities get built. We also track how the sector intersects with broader real estate trends, including adaptive reuse and shifting investor sentiment. Expect ongoing reporting on the tension between insatiable digital infrastructure demand and the communities, grids, and capital markets that must absorb it, along with the policy responses emerging in response to that friction.
JLL says North and Central NJ office vacancy fell to 24.5% in Q3 2026, lowest since 2022, after a sixth straight quarter of positive absorption.
Chicago's suburban office vacancy held at 33.1% for a second quarter, ending 21 straight record highs, as demolitions and conversions shrink inventory.
CBRE data show U.S. office vacancy falling since late 2025, hitting 18.3% in Q2 2026 on small leases, while office CMBS delinquencies stay near record highs.
Cushman & Wakefield's Q3 report puts U.S. office vacancy at 19.8% after five straight quarters of positive absorption, as office CMBS delinquencies keep rising.
Office CMBS delinquency hit decade highs this fall as data center REITs and new Blackstone and Blue Owl vehicles chase AI construction financing.
Regional banks drove Q3 growth with business loans while property lending stayed muted, office loans kept souring and data center debt moved to private credit.
Woodburn, Oregon adopts a 120-day data center moratorium, joining Hillsboro, Salem and Clackamas County amid statewide construction pushback.
Office REITs draw fresh investor interest as workers return, while data center REITs face AI slowdown fears and apartment trusts hold steady.
Mike Rogers' one-year data center moratorium call reflects a national wave of local bans, state rules and threats over AI facility construction.
Pennsylvania now requires data-center developers to prove local buy-in and fair energy costs, joining a nationwide wave of building restrictions.
TCW's Global Real Estate Fund returned 9.54% in Q2 2026, trailing the S&P Global REIT Index's 11.08% as Crown Castle and Cellnex weighed on returns.
Lancaster County, Nebraska weighs a data center construction pause amid growing national backlash over power and water use.
Apartments post flat values as data centers and specialty REITs attract capital in 2026's uneven commercial real estate market.
Large office towers are losing value while small offices gain, new CoStar and NAR data reveal a split commercial real estate market.
Officials face threats as 500+ towns and Pennsylvania restrict AI data center construction amid growing backlash.
Cities weigh office-to-housing conversions as CMBS maturities and uneven vacancy trends reshape commercial real estate risk.
Omaha's 37th Commercial Real Estate Summit convenes as CRE faces loan risk, CMBS maturities, and shifting demand nationwide.
Mike Rogers' call for a data center moratorium highlights growing political and local backlash over rapid construction nationwide.
CAPREIT units traded near C$31 Friday, lagging the market, as Canadian asking rents fell for a 24th month and analysts trimmed targets before Nov. 4 results.
CAPREIT stock swung sharply this week as apartment REITs lag other property sectors amid shifting real estate investment trends.