X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Sean Ryan is associate editor of Real Estate New Jersey, from which this article is excerpted.

(To read more on the industrial market, click here.)

WOODBRIDGE, NJ-A new Q3 report from Newmark Knight Frank on New Jersey’s industrial space in the third quarter reflects a higher amount of space available for rent, thanks to new construction hitting the market. The availability rate statewide currently stands at 7.3%, with 6.9% direct and 0.4% through sublease.

The weighted average asking price is $5.81, with $5.84 being asked on average for direct space and $5.54 for sublease. Last quarter the average ask rate was $5.99, and last year it was $5.89. Net absorption was a negative 2.1 million sf.

Close to two million sf is under construction at the moment, with 600,000 sf rising in North Jersey (largely around Exits 12 and 13) and 1.36 million sf in Central Jersey (largely around exit 8A). Plans to make the Newark/Elizabeth port viable in the long-term has spurned construction of distribution centers with more doors and higher ceilings. These should command higher rents, around $8 per sf, which will raise the overall rental rates when delivered.

By county, Middlesex has the most space (180 million sf), and the most space on the market (13.7 million sf). Essex and Monmouth counties share the tightest market, with 4.1% vacancy each. Hunterdon County’s 30.3% availability rate was a small aberration, Hunterdon having just under five million sf and 1.5 million sf of it available. Most other New Jersey counties had single digit vacancies, save Mercer with a 12.3% vacancy.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt
Live Chat

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.