TRENTON – The Senate Community and Urban Affairs Committee advanced legislation sponsored by Senators Troy Singleton and Benjie Wimberly that would authorize the conversion of certain vacant or underutilized office parks and retail centers into mixed-use developments, including housing and commercial space.

The bill, S-1766, would establish a limited preemption from local zoning regulations for qualifying redevelopment projects that repurpose struggling commercial properties into mixed-use communities. Eligible projects must include residential development, with at least 20 percent of units reserved for affordable housing.

“New Jersey’s housing affordability crisis is fundamentally a supply issue,” said Senator Singleton (D-Burlington). “We have large commercial properties across the state sitting partially vacant or economically distressed while families struggle to find attainable housing. This legislation helps modernize outdated zoning practices and creates a pathway to transform underutilized sites into vibrant mixed-use communities that can support housing, local businesses, and long-term economic growth.”

Under the legislation, qualifying office parks must be at least 50,000 square feet, and retail centers must be at least 15,000 square feet. Properties would also need to demonstrate sustained vacancy or economic distress to qualify for redevelopment under the bill.

“As workplace trends and consumer habits continue to evolve, many suburban office parks and shopping centers are no longer serving the purpose they once did,” said Senator Wimberly (D-Bergen/Passaic). “Rather than allowing these properties to decline further, this bill creates an opportunity to breathe new life into them while addressing one of the biggest challenges facing our state: the lack of available housing.”

The legislation would allow qualifying mixed-use redevelopment projects to proceed as permitted uses without requiring a use variance, provided they comply with applicable development standards. Municipal planning boards would retain oversight of the site plan approval process, and projects would still be required to comply with the “Municipal Land Use Law” and other applicable local requirements.

This legislation reflects broader changes in the economy and commercial real estate market. National office vacancy rates recently reached record highs, while many older suburban office parks and retail centers have struggled with long-term vacancies and declining demand.

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