{"id":1004296520,"date":"2019-02-05T04:54:34","date_gmt":"2019-02-05T12:54:34","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004296520"},"modified":"2020-02-25T01:51:46","modified_gmt":"2020-02-25T09:51:46","slug":"new-jersey-continues-warehouse-logistics-surge","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/new-jersey-continues-warehouse-logistics-surge\/","title":{"rendered":"New Jersey Continues Warehouse, Logistics Surge"},"content":{"rendered":"
\"\"<\/a>

Average asking rental rates and new construction, New Jersey industrial<\/p><\/div>\n

New Jersey just can\u2019t build industrial space fast enough, it seems. The 10.6 million square feet that was delivered last year\u2014the most since 2001\u2014failed to equal a record 12.8 million square feet of absorption, according to a new, fourth-quarter report<\/a> from Transwestern.<\/p>\n

Seven of the state\u2019s 25 submarkets hit all-time lows for vacancy, and average vacancy was below 3 percent in 12 of them. Though leasing by retailers and wholesalers was the major factor, manufacturing and food-related companies are emerging as significant users of industrial space.<\/p>\n

The past year just continues a trend in the Garden State, where 35 million square feet of industrial space has been developed since 2011, yet occupancy levels have shot up by 60 million square feet over the same period. Unsurprisingly, rents have increased for 14 straight quarters, rising to more than $9 a square foot in seven submarkets, per Transwestern.<\/p>\n

\"\"<\/a>

Jeffrey Furey, Managing Director, Transwestern<\/p><\/div>\n

New industrial projects are being developed mostly in the central part of the state, along the Turnpike and between exits 7A and 13A, and, more recently, along the I-287 corridor. About 6.2 million square feet is under construction in the state\u2019s core markets, including 5.1 million square feet just in central New Jersey.<\/p>\n

\u201cThe demand is so high that tenants are resetting the market when renewing leases, with no choice but to pay significantly higher rents<\/em>,\u201d Jeffrey Furey, managing director at Transwestern, said in a prepared statement.<\/p>\n

\u201cAs the industrial market shows no signs of cooling, New Jersey faces some critical challenges moving forward<\/em>,\u201d added Matthew Dolly, director of research at Transwestern. \u201cWhile the state boasts excellent air, freight, port and rail infrastructure, upgrades are necessary. Unless critical needs are addressed, the state\u2019s current infrastructure will have difficulty accommodating the growth that the industrial sector presents<\/em>.\u201d<\/p>\n

Large, sometimes creative deals<\/h2>\n
\"\"<\/a>

Matthew Dolly, Director of Research, Transwestern<\/p><\/div>\n

Two of last year\u2019s largest industrial transactions in New Jersey resulted from the redevelopment of other property types to warehouse and logistics facilities. In Wayne, Gucci leased a 437,500-square-foot industrial property under construction on the site of a former 345,000-square-foot office building. In Totowa, Dutch food and biochemicals company Corbion leased a redevelopment formerly occupied by life sciences company P.F. Laboratories Inc.<\/p>\n

Among more conventional industrial transactions, last April, Duke Realty leased all 264,000 square feet of its building<\/a> at 10 Broadway in Cranbury to RAB Lighting, a manufacturer of indoor and outdoor LED lighting and controls. In May, Duke scored again when 4PX Express USA, a 3PL provider, took the entire 354,000-square-foot building at 1000 High St. in ePort Logistics Center in Perth Amboy.<\/p>\n

Images courtesy of Transwestern<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Even though the state hit a 17-year high for new industrial development, demand was voracious enough to more than offset it, as rents keep pace with massive absorption. <\/p>\n","protected":false},"author":882,"featured_media":1004296583,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21782,21808,21748,1600,21742,10],"tags":[33313],"class_list":["post-1004296520","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-development","category-featured","category-industrial","category-new-york","category-latest","category-northeast","tag-transwestern"],"acf":[],"yoast_head":"\nNew Jersey Continues Warehouse, Logistics Surge - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/new-jersey-continues-warehouse-logistics-surge\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"New Jersey Continues Warehouse, Logistics Surge\" \/>\n<meta property=\"og:description\" content=\"Even though the state hit a 17-year high for new industrial development, demand was voracious enough to more than offset it, as rents keep pace with massive absorption.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/new-jersey-continues-warehouse-logistics-surge\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2019-02-05T12:54:34+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-02-25T09:51:46+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2019\/02\/NJ-4Q18-Industrial.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1080\" \/>\n\t<meta property=\"og:image:height\" content=\"810\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Scott Baltic\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/new-jersey-continues-warehouse-logistics-surge\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/new-jersey-continues-warehouse-logistics-surge\/\",\"name\":\"New Jersey Continues Warehouse, Logistics Surge - 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