Prices Jump for Industrial Development Sites

Developers are paying more than they have ever paid before for land where they can build new warehouses and distribution centers. E-Commerce is making industrial development sites much more valuable.

In Northern New Jersey, developers paid an average $1,750,000 per acre for typical large parcel prime warehouse development land in 2017. That’s up 17% compared to the year before, according to a new report from CBRE.

“Demand for buildings greater than 600,000 square feet on the New Jersey Turnpike Corridor remains frothy. Scarcity of both existing inventory and larger sites to accommodate these buildings has placed upward pressure on pricing, pushing land prices and rents to unprecedented levels,” said Thomas Monahan, executive vice president, CBRE.

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