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Class A Product Drives NJ Industrial Growth
The driving force in the hot industrial markets of Northern and Central New Jersey is Class A product, CBRE says in a new report. Class A properties have seen far steeper declines in vacancy from the peak, and have seen faster rent growth.
“One of the main reasons for the success of the Class A industrial market is the consistent growth of e-commerce and, along with it, the growing demand for efficient facilities that can accommodate ‘last mile’ delivery solutions,” said Thomas Monahan, vice chairman of CBRE’s New Jersey industrial and logistics practice.
“New generation Class A facilities, with their larger size, expanded ceiling heights, wider column spacing, super-flat floors, perimeter security and expanded truck and car parking capacity, are best suited to accommodate the growing demands of e-commerce companies,” he added.
More than 11.4 million square feet of Class A space is under construction across both markets, says CBRE.
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