Slava Vaynberg, Senior Managing Director, Savills
In an interview with Invest:, Slava Vaynberg, senior managing director at Savills, discussed the evolving dynamics of New Jersey’s commercial real estate market and Savills’ role as a tenant advocate. He highlighted the challenges posed by landlord instability, shifting tenant preferences, and economic uncertainties. “We are concerned about the stability of our clients’ landlords and the buildings that they’re in,” Vaynberg noted, emphasizing the firm’s proactive approach to safeguarding tenant interests.
Looking back over the past year, what market or operational changes have had the biggest impact on Savills, and how?
Over the past five to seven years, the New Jersey office market has changed dramatically. Many new ownership groups acquired assets at premium valuations while taking on significant debt. In the wake of COVID’s slowed leasing velocity and availability rates increasing, many landlords are faced with rent rolls that do not support their debt obligations.
Our priority for our clients is to ensure the stability of both landlords and the buildings they occupy. Over the past year, we’ve conducted extensive due diligence into ownership groups and their portfolios, identifying risks and advising clients on how to protect themselves. Even with a lease in place, there are proactive measures we can take to safeguard our clients in current or future transactions.
At the same time, we’re leveraging today’s market conditions to structure transactions that create opportunities while mitigating risks.
How would you describe the New Jersey commercial real estate market, and how does it compare to other markets?
In the office sector, performance is highly bifurcated. Top-tier buildings with strong ownership, modern amenities, and financial stability are nearly fully leased and continue to see rising rents and steady demand. By contrast, class B and below properties struggle. Tenants are vacating these assets due to outdated infrastructure, limited amenities, and the landlords’ inability to fund tenant improvements or basic upkeep. This has created a “tale of two markets.”
Headline statistics, such as a 25%+ vacancy rate, suggest abundant availability, but most of the vacancies are in either older, antiquated buildings with no amenities or in buildings owned by landlords who cannot transact.
Have you observed any new trends or factors influencing tenant behavior or space decisions?
In New Jersey’s commercial real estate market, tenant decisions are increasingly driven by one central priority: keeping employees engaged, encouraging office attendance, and bolstering recruitment.
Location and proximity to surrounding amenities remain important, but the quality of the building and location have become even more critical. Executives are asking: Is this a high-quality, appealing work environment? Buildings that offer in-house amenities, such as cafeterias, gyms, conference centers, lounges, and even game rooms, are in high demand. Some properties now feature Peloton studios, saunas, and other innovations designed to elevate the employee experience.
This shift is also affecting submarkets. Downtown New Brunswick has gained momentum with major transactions like Nokia, while Morristown has seen several large deals fueled by new developments and amenity-rich offerings, including walkable food and retail options. Across the board, access to amenities and enhancing the employee experience remain top priorities for decision-makers.
Do you think the shift between urban and suburban preferences is also being influenced by urban redevelopment factors?
Tenant decisions in New Jersey are case-specific, but the underlying drivers are consistent: companies in outdated buildings are seeking better workplaces to attract and retain talent.
Nokia’s recent move downtown is a clear example. The decision checked all the boxes with access to amenities and a modern office environment designed to support employee engagement. Similarly, Morristown remains a standout submarket. Its appeal has always been strong, and ongoing redevelopment continues to draw tenants into its vibrant downtown.
These moves reinforce the broader trend: companies are prioritizing quality, amenity-rich spaces that create a competitive edge in talent attraction.
How is Savills using technologies like AI to enhance analytics or improve efficiency in its consulting?
Savills is strategically focused on incorporating AI into daily workflows to benefit both our advisors and our clients. Using ChatGPT’s enterprise platform, Savills developed a proprietary and secure AI system, built exclusively for our use, that can integrate data from both in-house and open sources. The system can leverage an extensive knowledge library of Savills documents, including previously negotiated lease templates, ensuring that new transactions benefit from insights and protections captured in past deals. It also accelerates research on both tenants and landlords, allowing us to deliver sharper intelligence and faster results for our clients. This technology has been a game-changer: streamlining processes, reducing risk, and enhancing the value we bring as tenant advocates.
What is your outlook for the broader commercial real estate market in New Jersey over the coming years, and what will be Savills’ top priorities?
Looking ahead, we anticipate a relative status quo in the New Jersey real estate market over the next couple of years. With only a limited number of landlords currently able to transact, deal volume is expected to remain constrained. However, as distressed buildings change hands, new ownership groups will acquire assets at recalibrated pricing, which should reinvigorate activity.
In the near term, patience is key. Rent growth remains muted, and much of the market resembles a game of “musical chairs,” with tenants relocating rather than new entrants entering the market. That said, bright spots exist. AI and the life sciences sector continue to expand, and New Jersey is well-positioned to capture this demand. For forward-looking tenants, today’s environment presents an opportunity to secure high-quality space on favorable terms.
