3.6% Vacancy for New Jersey Industrial: Per JLL

Industrial space is now so hard to find in Northern and Central New Jersey, tenants looking for space often have to sign leases early to get the space they need. An imbalance between supply and demand has resulted in an ultra-low vacancy rate of just 3.6%. That’s down almost a full percentage point compared to last year.

“Demand for New Jersey industrial space continues to outpace supply despite significant levels of construction activity,” said David Knee for JLL. Companies leased 27.9 million square feet of industrial space in the New Jersey area in 2017. That’s more than a third (35.4%) higher than the total from 2016.

Demand for logistics space remained the strongest driver of market fundamentals, resulting in record-setting absorption.

In 2017, nearly 90% of new construction was already leased upon delivery, while 60% of projects currently under construction are build-to-suit, according to new research from JLL.

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