CHATHAM, NJ – Cassidy Turley, a leading commercial real estate services provider in the U.S., today released its Industrial Market Snapshot for Northern and Central New Jersey. Overall, both markets posted growth and demonstrated strength in market activity.
Northern NJ reported a powerful second quarter of activity with 662,057 square feet of net absorption, bringing the vacancy rate down to 7.4% from 7.6% in the previous quarter. The positive outlook is partially evidenced by three consecutive quarters of declining vacancy rates and over 1.2 million square feet of positive demand in 2013, already doubling the annual absorption in 2012. Asking rents have been consistently increasing since hitting the bottom at $5.58 per square foot in first quarter of 2012. The Meadowlands submarket reported the strongest leasing activity with 280,878 square feet of absorption, following last quarter’s standout activity with 928,526 square feet of positive absorption. Sales activity was largely fueled by tax credit accessibility to tenants and increased retail sales as many of the large tenants in the market are taking advantage of opportunistic incentives from the state, specifically the “Grow NJ” grant and “Urban Transit Hub” tax credit. New construction activity is now at the highest point since first quarter of 2007, which indicates that market conditions have not only improved but are prime for growth. The Central NJ industrial market reported an admirable 600,788 square feet of net absorption for the quarter and 1.9 million square feet year to date. The vacancy rate was 8.2%, down from 8.4% in the previous quarter and well below the peak of 10.6% in third quarter of 2010. The Turnpike Corridor is once again on fire, capturing all seven of the top leases in the second quarter, and investment sale activity is on the rise as well. The acquisition of 311-315 Half Acre Rd. in Cranbury for a total of 947,224 square feet are fully leased to Crate & Barrel Distribution and were sold for $75.3M or $79 per square foot to Duke Realty from Deka Immobilien. There were two buildings reported as under construction this quarter for a total of 803,100 square feet. Looking forward, demand is expected to remain high for Central NJ industrial product through the remainder of the year, with a robust pipeline of tenant activity expected to close in the third and fourth quarter. “This quarter supported the exciting increases in overall growth in both the Northern and Central NJ industrial markets,” says Raymond Trevisan, Managing Director, Cassidy Turley. “The continued strength of the market reflects the positive impact of the prospering local economy.”
About Cassidy Turley
Cassidy Turley is a leading commercial real estate services provider with more than 3,800 professionals in more than 60 offices nationwide. With headquarters in Washington, DC, the company represents a wide range of clients—from small businesses to Fortune 500 companies, from local non-profits to major institutions. The firm completed transactions valued at $22 billion in 2012, manages approximately 400 million square feet on behalf of institutional, corporate and private clients and supports more than 23,000 domestic corporate services locations. Cassidy Turley serves owners, investors and tenants with a full spectrum of integrated commercial real estate services—including capital markets, tenant representation, corporate services, project leasing, property management, project and development services, and research and consulting. Cassidy Turley enhances its global service delivery outside North America through a partnership with GVA, giving clients access to commercial real estate professionals in 65 international markets. Please visit www.cassidyturley.com for more information about Cassidy Turley.