By Joshua Burd
Five of the nation’s 100 largest industrial leases in 2021 occurred in central New Jersey, according to CBRE, accounting for 4.6 million square feet as deal sizes continue to grow.
A new report by the real estate services firm said 2021 was a record year for large warehouse transactions, driven by a rebounding economy and strong e-commerce sales. Industrial and logistics users committed to 57 leases of 1 million square feet or larger across the U.S. last year, representing a 19 percent increase from 2020, with activity focused on many of the most sought-after regions for tenants.
Central New Jersey ranked ninth for such transactions, according to the report, which analyzed the 100 largest U.S. industrial and logistics leases of 2021.
“The trend of broad industrial demand by a variety of industries is expected to continue this year, as strong retail sales and the need to hold more inventory close to consumer markets is expected to increase the average transaction size,” said Thomas Monahan, vice chairman at CBRE. “A possible headwind to this forecast is a dwindling supply of mega facilities, especially in core markets such as central New Jersey with little land available for development.”
In a news release, CBRE said it found that the average size for the 100 largest leases of 2021 increased to 1.053 million square feet, slightly above 2020’s average of about 1.038 million square feet. General retail and wholesale users claimed the largest share of those transactions, inking 44 deals for a total of 46.1 million square feet, up from 35 million square feet across 32 transactions in 2020.
E-commerce-only occupiers, last year’s leader, were second on the list with 21 deals for a combined 27 million square feet, followed by food and beverage users at 15 deals comprising 14.2 million square feet.
By market, Chicago had the greatest number of the top 100 transactions with 12, CBRE said. The Pennsylvania corridor along interstates 78 and 81 followed with 11, but recorded the most transacted square feet at 12.4 million.
