The average rent for industrial space in New Jersey rose to $7.26 per square foot in the second quarter. That’s the highest ever — up 15% from a year ago.
“As demand from third-party logistics companies for small-to-midsized industrial buildings persists, the large majority of the deals continue to take place along the Turnpike corridor, although secondary submarkets continue to be active,” said Jeffrey Furey, managing director for Transwestern.
Companies leased less than 1 million square feet of industrial space in the second quarter. But that’s only because so little space was available. To meet the sustained demand, developers are building 12.1 million square feet of new warehouse space in the state – the largest amount ever recorded.
“As the new projects under development are specifically designed to meet the pent-up demand from e-commerce distributors, the industry must find a way to meet the corresponding need for construction workers and truck drivers,” Furey added.