Mars Moves US HQ From Newark to Chicago, Vacates 110,000 SF

New Jersey HQ Retrenchment Continues

RE-NJ reports that Mars Snacking will relocate its US headquarters from downtown Newark to its expanding North American campus in Chicago, according to NJBIZ. The shift comes just six years after Mars signed a high-profile lease at Ironside Newark, marking its celebrated return to the city where it first opened US operations in 1940. The departure, confirmed for completion by December 2027, affects more than 300 employees and ends a short-lived but symbolic chapter for Newark’s CRE narrative.

Mars’ exit echoes a broader pattern of blue-chip office tenants moving out of New Jersey for lower-cost states. In May, Samsung Electronics America announced it will shift its headquarters from Englewood Cliffs to Texas, adding to the Garden State’s corporate tenant attrition. According to the New Jersey Business & Industry Association, the state is on track to lose 9,700 jobs this year as noted in WARN filings, underlining the trend as more than isolated events.

The Details

Mars’ move revolves around consolidating its snacking division’s US footprint after a “comprehensive review.” The company will vacate a 110,000 SF office in Ironside Newark, an Edison Properties redevelopment near the Prudential Center and Newark Penn Station. The lease, initially reported as a 15-year deal, began in mid-2020 and was backed by a 10-year, $31.5M New Jersey tax credit.

With the move, Mars is expected to repay that incentive. The company is also investing $2B to expand US manufacturing, showing it continues prioritizing domestic production despite relocating corporate offices. The company emphasizes that its manufacturing and R&D presence in Hackettstown will remain, ensuring continued operations for its chocolate factory and innovation center.

Corporate Exodus Reshapes Local Office Demand

Mars’ departure adds to an already crowded field of major New Jersey HQ exits, and the impact is not just symbolic. The city of Newark had been touting Ironside Newark as a keystone for its downtown revival, with Mars as an anchor driving interest from other large tenants.

Now, unforeseen backfilling of 110,000 SF will pressure an already competitive office leasing environment. For context, PSE&G, Prudential Financial, and Audible have served as long-term Newark anchors, but aggressive incentives have not stemmed office downsizing or moves out of state in recent years. The Mars news arrives on the heels of Samsung’s May announcement and a decade marked by a succession of high-profile departures.

Why It Matters

The Mars exit from Newark underscores several converging pressures for New Jersey’s office market and economic development goals. According to the New Jersey Business & Industry Association, the state is facing a projected 9,700 job losses in 2026, an issue compounded by highly mobile white-collar employers pursuing lower costs and larger footprints elsewhere. While the $31.5M tax incentive structure aimed to keep Mars local, it failed to counter broader corporate real estate trends. The vacated space is significant in scale, particularly at 110,000 SF right at the heart of Newark’s revitalizing business district.

For the CRE sector, Mars’ exit illustrates the volatility of relying on headline tenants attracted by public subsidies. As New Jersey’s office vacancy rates remain stubbornly high (with JLL reporting 24.7% in North Jersey as of Q2 2026), large move-outs complicate prospects for landlords and city planners.

Though Mars will maintain operations in Hackettstown, its HQ shift signals that even companies with historical roots can be lured by cost savings and consolidation opportunities. The loss raises deeper questions about the state’s competitiveness in attracting and retaining major employers amid persistent pressure from lower-tax, lower-cost markets like Chicago and Texas.

What’s Next

Mars expects to finalize the headquarter transition by December 2027, giving local officials and Edison Properties time to pursue large replacement tenants for Ironside Newark. The city’s ability to swiftly backfill 110,000 SF will serve as an acid test for Newark’s attractiveness relative to other regional cities.

Meanwhile, policymakers and NJBIA leaders are calling for changes to the state’s business climate to halt further departures. As global firms look critically at office costs and state incentives, New Jersey’s response will shape local CRE fortunes heading into 2027.