New Jersey Industrial Market records 17-year high for new development amid voracious demand
FLORHAM PARK, NJ — Despite a near-record amount of new development in 2018, New Jersey’s supply of industrial space is not keeping pace with the extraordinary demand, according to Transwestern’s Fourth-Quarter 2018 Industrial Market Report. The 10.6 million s/f of space that was delivered last year – the most since 2001 – was not enough to satisfy the insatiable appetite of tenants, which set a new record for net absorption. While the record-level absorption of 12.8 million s/f can be largely attributed to leasing activity from retailers and wholesalers, manufacturing and food-related companies have emerged of late. With these industries continuing to expand their presence, vacancy rates dipped below 3.0 percent in 12 of the state’s 25 submarkets, with seven submarkets reaching an all-time low.