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SOUTH BRUNSWICK, NJ-Dealmaking activity of the leasing sort has been painfully slow in most real estate sectors and submarkets in New Jersey in recent months, but the industrial sector continues to be the exception. The latest big-box transaction to come down the ‘pike, literally, is FNS Logistics Service Inc.’s signing for a total of 245,528 sf of warehousing and distribution space in the New Jersey Turnpike Exit 8A submarket.

The signing encompasses the entire building located at 112 Melrich Rd. here. The tenant, a worldwide logistics company based in Asia, expects to move into its new regional W/D facility next month. No further details of the lease transaction were released.

Robert Sager, managing director, and Nick Kim, director, of Insignia/ESG’s Industrial Services Group represented the tenant in the transaction. Executive director Frank Caccavo and director Jason Goldman of Cushman & Wakefield of NJ Inc. represented the owner of the property, Melrich Realty Corp. The latter firm is a locally based development company with a number of industrial real estate properties in the market.

“This is a significant transaction for FNS,” according to Kim. “The Exit 8A location makes it perfect for the company’s operations, and it meets its security concerns entirely.”

The location of FNS’ new warehousing and distribution center, which features 32-foot clear ceilings, is one of the largest stand-alone buildings in the Exit 8A market, according to Sager. Exit 8A, of course, remains one of the solidest industrial submarkets in the country, although recent speculative development has sent its vacancy rate up a bit, according to industry observers.

“Despite the oversupply of existing product, a large number of developers, both national and local, are still chasing what land is left at 8A,” says, Stan Danzig, a C&W executive director and industrial specialist based in the company’s East Rutherford, NJ office. “In fact, some major development names like Trammell Crow, Matrix and Klatskin are talking about moving forward with plans to build on spec in order to take advantage of today’s low interest rates.”

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