"This creation of a new type of hybrid flex building that combines office and industrial features can also be modified to suit a tenant's needs," he continues. "Companies have been turning to this kind of space as one solution."

The trend also reflects New Jersey's shift from traditional manufacturing to warehousing and distribution as the key driver of its industrial sector. And because well-built industrial space is only a step below flex or class C office space, industrial property developers have been successfully hedging their bets as to which way the market will go.

The result is that "leasing activity remains very strong, new development is being absorbed and build-to-suit facilities are proliferating in all areas of the market," says Tiger, who's based in First Industrial's New Jersey office in Montville. "Even though several million sf of new space has been added to the market, most of it has already been absorbed,"