NJ Industrial’s Near-Record New Supply is No Match for Record Demand
New Jersey’s near-record level of new industrial supply isn’t keeping pace with demand, Transwestern reported. The market saw 10.6 million square feet of space delivered last year, the most since 2001, yet still set a new record for net absorption.
Although the record-level absorption of 12.8 million square feet can be largely attributed to leasing activity from retailers and wholesalers, manufacturing and food-related companies have also emerged recently. With these industries continuing to expand, vacancy rates dropped below 3% in 12 of the state’s 25 submarkets, with seven submarkets reaching an all-time low.
“To be competitive in today’s environment, industrial tenants must take advantage of New Jersey’s unparalleled location at the center of the Northeast Corridor,” said Jeffrey Furey, managing director at Transwestern. “The demand is so high that tenants are resetting the market when renewing leases, with no choice but to pay significantly higher rents.”
Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces.
Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications.
Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).
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