New Jersey Industrial Development Picks Up the Pace
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New Jersey’s industrial market entered the second half of the year with substantially more space under construction than a year prior, Yardi Matrix data shows. Construction starts also increased, while industrial deliveries remained relatively close to last year’s pace.
Investment activity also stayed elevated, with sales volume approaching $1.8 billion and pricing above several peer markets. At the same time, vacancy remained below the national average and in-place rents posted one of the stronger annual gains among major industrial markets.
Construction activity builds from last year
New Jersey had nearly 10.3 million square feet of industrial space under construction across 34 properties as of the end of July. The pipeline represented 1.7 percent of total stock, below the 2 percent national average.
Among peer markets, Dallas had 33.7 million square feet underway, followed by Phoenix with 30.8 million square feet. The Kansas City industrial space pipeline was considerably smaller, at 3.3 million square feet.
New Jersey development activity increased considerably from the same period last year, when four projects totaling 1.2 million square feet were under construction. Through July, developers also broke ground on 18 properties totaling 4.1 million square feet, up from 14 projects encompassing 2.6 million square feet during the same period of 2025.
Central 9 Logistics Park – Building 1 is among the largest projects currently underway in the metro. The 808,510-square-foot property at 201 Jake Brown Road is expected to come online this year and will include 131 dock-high doors, four grade-level doors and 424 parking spaces.
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Deliveries remain close to last year’s pace
Year-to-date through July, New Jersey delivered 14 industrial properties totaling 3.7 million square feet. The completions represented 0.6 percent of total stock, close to the 0.7 percent national average.
Delivery volume was slightly below the same period last year, when 18 properties totaling 4.2 million square feet came online, according to Yardi Matrix data.
Dallas led the peer group with 15.5 million square feet delivered, followed by Phoenix at 7 million square feet. The Inland Empire completed 1.9 million square feet, while Kansas City delivered 1.6 million square feet during the period.
Pricing remains elevated amid active sales
New Jersey’s industrial sales volume reached approximately $1.75 billion year-to-date through July, according to Yardi Matrix data. Some 62 properties totaling 9.8 million square feet changed hands.
Industrial assets traded at an average of $184 per square foot. Phoenix and the Inland Empire posted lower averages of $158 and $156 per square foot, respectively, while Chicago averaged $97 per square foot and Kansas City $96 per square foot.
In July, NorthBridge Partners acquired 385 Franklin Ave., an 81,000-square-foot shallow-bay industrial facility in Rockaway, N.J., from LM Real Estate Partners. JLL Capital Markets represented the seller. The transaction value was not disclosed, although the property previously sold for $13 million in 2021, according to Yardi Matrix data. The warehouse and distribution facility is leased to 11 tenants.
Vacancy stays below the national rate
New Jersey’s industrial vacancy rate stood at 8 percent at the end of July, below the 9.3 percent national average. Chicago office space had a higher rate of 11 percent, followed by Dallas at 9.4 percent, the Inland Empire at 8.7 percent and Phoenix at 8.3 percent. Kansas City posted a lower vacancy rate of 6.7 percent.
Average in-place rents reached $12.86 per square foot, up 7.3 percent over the previous 12 months. Leases signed during that period averaged $14.61 per square foot.
Amazing Savings signed a 173,475-square-foot industrial lease at Brookfield Properties’ recently completed Spring Brook Commerce Center in Mine Hill, N.J. Resource Realty of Northern New Jersey represented the tenant, while Lee & Associates represented the landlord. The location will support the discount chain’s expansion and service across the Tri-State area.
More recently, a freight transportation services provider signed a 250,000-square-foot lease at 1 Buckingham Ave., a 407,700-square-foot industrial facility in Perth Amboy, N.J. Accurate Builders and Developers owns the property, according to Yardi Matrix data. The building became fully leased following the transaction. The tenant will relocate from its previous location in Union County, N.J.
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