Trenton – Seeking an innovative way to repurpose abandoned commercial properties, the Senate Community and Urban Affairs Committee advanced legislation sponsored by Senator Troy Singleton that would authorize the conversion of certain office parks and retail centers into mixed-use developments.

As economic conditions and consumer preferences change in conjunction with remote work, office space vacancies are at a 30-year high, according to Moody’s. At the same time, a housing shortage drives up rents and home prices across the country. This legislation seeks to address these dual issues by enabling the conversion of vacant office space into mixed-use developments, allowing for new affordable housing and the creation of vibrant communities that appeal to the workers and employers of today.  

“In recent years, vacant retail and office parks have become eyesores and economic burdens to communities throughout the state,” said Senator Singleton (D-Burlington), Chair of the Senate Community and Urban Affairs Committee. “By repurposing these outdated, unused spaces into mixed-use developments, we will be able to address the housing shortage and create economic growth opportunities in these areas.” 

The bill, S-1408, would permit conversions or partial conversions of retail centers or office parks provided that it meets a variety of requirements to be deemed an eligible property. The requirements would concern the size of the office park or retail center, as well as the presence of prolonged vacancy rates of at least 20 percent or a substantial economic downturn with evidence that expenses for the premises have exceeded revenues by 30 percent or more. These conversions, provided they meet all requirements, would be considered a permitted use and would not require a use variance. 

The Committee advanced the legislation in a unanimous vote. 

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