By Joshua Burd
The Exit 8A submarket continues to thrive in the state’s industrial sector, according to JLL, accounting for more than half of the leasing activity in northern and central New Jersey during the second quarter.
Research from the real estate services firm found that 6.9 million square feet of leasing activity in Q2 ensured that vacancy held steady at 4 percent through midyear. That contributed to 1.7 million square feet in positive net absorption, matching the pace of absorption in Q1.
Experts with JLL say the submarket around New Jersey Turnpike Exit 8A represented 54.9 percent of leasing activity during the second quarter. The submarket in recent years has become a favorite of e-commerce firms, retailers, logistics users and others thanks largely to its accessibility and the ability to support oversized requirements.
“Exit 8A continues to garner favor from tenants in the market,” said David Knee, executive managing director at JLL, later adding: “The market remains a good alternative for tenants that are facing double digit rental rates in northern New Jersey.”
Here is a list of the 10 largest leases in the 8A submarket during Q2, according to JLL:
- Amazon: 992,043 square feet at 2 Brick Yard Road, Cranbury (under construction)
- Lollytogs: 610,000 square feet at 321 Herrod Blvd., Dayton
- Mark Fisher: 607,739 square feet at 1242 Cranbury South River Road, Cranbury
- Auto-Man: 365,400 square feet at 400 Docks Corner Road, Monroe (planned)
- Pacific Logistics: 210,600 square feet at 111 Interstate Blvd., South Brunswick
- Distrilogik: 187,600 square feet at 2351 Route 130, South Brunswick (under construction)
- Moulten Logistics Management: 172,249 square feet at 200 Docks Corner Road, South Brunswick
- Medical Depot: 160,042 square feet at 200 Docks Corner Road, South Brunswick
- Main Tape: 115,200 square feet at 1 Capital Drive, Cranbury
- PSS Warehouse: 115,200 square feet at 11 Nicholas Court, Dayton
JLL also found in its second-quarter research that industrial landlords signed 2.5 million square feet of new Class A leases during Q2, representing 36.4 percent of total leasing velocity. The demand for new space has caused developers to continue with speculative projects, JLL said, noting that nearly 60 percent of the 6.8 million square feet under construction is already leased.
The space shortages have also helped fuel additional rent growth in 2017, with average asking rental rates rising $0.22 per square foot, an increase of 3.2 percent from the previous quarter, JLL said. Higher-priced new construction also helped boost average asking rental rates, as new construction constitutes a larger percentage of total available product than seen in previous years.