New Jersey Industrial Sees Sales Moving as Deliveries Ease
See which metrics also perform well, according to Yardi Matrix data.
The New Jersey industrial market ranked high for sales and development in the first four months of the year, according to Yardi Matrix data.
The Garden State recorded the nation’s second-highest industrial sales volume year-to-date through April. Pricing also placed the market among the top 10 in the U.S.
Meanwhile, New Jersey saw its construction pipeline increase sharply from last year’s level, supported by several large-scale projects. However, deliveries slowed down year-over-year, in line with the national trend, channeling tenant demand toward existing space.
As such, the market’s industrial vacancy stayed below the national rate alongside continued rent growth. In fact, the Garden State had the priciest in-place rents among the peer set as of April.
Sales volume stays solid
New Jersey’s industrial sales volume reached $1.3 billion year-to-date through April. The market ranked second in the nation after Dallas, where investment generated more than $1.7 billion.
Pricing averaged $181 per square foot, the highest among the peer set. The Inland Empire ($170 per square foot) and Dallas ($143 per square foot) followed, while Chicago ($87 per square foot) posted a lower average.
In one of the largest transactions of the January-April interval, BGO paid $270.4 million for Building 1 at Millstone 8 Logistics Park, a 997,965-square-foot property in Millstone, N.J. Crow Holdings previously owned the fully leased property that came online in 2022. A $130 million loan from Northwestern Mutual financed the purchase.
Construction pipeline expands over the year
At the end of April, New Jersey had 7.4 million square feet of industrial space under construction across 25 facilities, accounting for 1.2 percent of total stock, below the 1.7 percent national average. Development activity increased significantly from the same period in 2025, when only 2.5 million square feet across four projects were underway.
Across all major industrial hubs, Dallas (28.7 million square feet) and Phoenix (19.4 million square feet) posted the largest development pipelines, while Orange County (500,300 square feet) was on the other end of the spectrum.
One of the projects currently under construction in New Jersey is Raritan River Logistics Center, a 973,395-square-foot development in Perth Amboy. Brookfield Properties broke ground on the project—the redevelopment of land previously used for industrial metalwork and materials production—in 2025 and completion is expected by the end of this year.
The facility at 577 Smith St. will feature a 42-foot clear height, 154 loading docks, four drive-in doors, a built-to-suit office component and a multi-level parking structure.
READ ALSO: NAREE Special Report: Does Industrial Demand Foreshadow New Development?
As for industrial deliveries, eight properties totaling 1.6 million square feet came online in the market as of the end of April, accounting for 0.3 percent of total stock. The figure was slightly below the 0.4 percent national average.
New Jersey also trailed all other peer markets for completions. Dallas led at 10.7 million square feet, followed by Chicago industrial space (6 million square feet) and the Inland Empire (1.8 million square feet).
Vacancy stays below the national rate as rents rise
New Jersey’s industrial vacancy rate measured 8.8 percent at the end of April, below the 9.1 percent national average. The Inland Empire’s rate was close, at 8.9 percent, while Dallas’ index reached 9.7 percent.
In-place rents in New Jersey averaged $12.59 per square foot in April, up 4.7 percent year-over-year. The market had the priciest rents in the peer set, surpassing the Inland Empire ($12.22 per square foot), Dallas ($6.91 per square foot) and Chicago ($6.74 per square foot).
In April, Maersk signed a 233,492-square-foot lease at 200 Linden Logistics Way in Linden, N.J. The firm will occupy nearly half of a 515,600-square-foot distribution facility owned by PGIM, Advance Realty Investors and Greek Real Estate Partners and use the space as a ground freight hub. CBRE represented the partnership, while JLL negotiated on behalf of the tenant.
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