400 Salt Meadow Road in Carteret — Courtesy: Crow Holdings Development
Veterans of industrial real estate will tell you that the recent pullback is both healthy and not entirely surprising in the context of history, following a pandemic-fueled peak of record-low vacancy and soaring rent growth. Yet there’s no denying the hole that was left in the New Jersey market when the demand from ecommerce and retail players dried up in the midst of a speculative construction boom.
Enter the likes of Elogistek, Weida Freight System and many other Asia-based third-party logistics firms that have leased large blocks of warehouse space over the past 24 months. As you’ll read in this month’s cover story, that’s been critical for many Garden State landlords, creating new demand and helping to fill excess inventory after the recent development surge. A spike in 2024 — when the offshore firms accounted for some 42 percent of all Class A industrial leasing in the state — has given way to a more modest pace in 2025. Yet developers expect Asian 3PLs to continue to loom large going forward, even with the cloud of a trade war between the U.S. and China.
“We’ve been seeing these proposals for probably over three years at this point,” said David Greek, managing partner of East Brunswick-based Greek Real Estate Partners. “But they really haven’t hit the comp sheets until last year because not many of them were actually able to lease space when the market was a lot tighter.”
Elsewhere in this edition, we highlight a component of New Jersey’s new affordable housing law that could help spur a major expansion of homes for residents with special needs. At least, that’s the hope of advocates and developers involved in the supportive housing sector. The new law, enacted in 2024, created a framework to address each municipality’s unmet need of low- and moderate-income homes under the Fair Housing Act. That includes the potential for “bonus credits” for municipalities that include supportive housing in their projects, from homes with modifications for residents with physical disabilities or social services for those with autism, depression or other behavioral challenges. The mission now, advocates say, is to make sure developers and municipalities are aware and taking advantage of the opportunity.
Our Summer issue also includes our coverage of a new 220-unit luxury multifamily project in Warren, a first for the largely rural community in Somerset County. Built by Canoe Brook Development, the property has seen strong demand since hitting the market with its upscale homes and amenity spaces, which bodes well for a project that will also help the town satisfy its affordable housing obligations.
You can find those stories and more in the latest issue of Real Estate NJ, which comes with summer well underway here in the Northeast. While we’re looking forward to the next two months, we’re even more excited for our Sept. 10 event — The Road Ahead for Industrial — where we’re lucky to have an esteemed panel of developers and other market experts. We hope to see many of you there at The Highlawn on West Orange.
Until then, thanks for reading, enjoy the issue and enjoy the summer!
Joshua Burd
Editor
