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leased or 10-year-leased buildings,” he said. “We’re focused on value-add and that does require more resources to execute on the value strategy.”
That’s not to mention Prologis’ recently announced pact to acquire Duke Realty Corp., which Harty could not discuss but will expand the company’s holdings in New Jersey
by 21 percent. Prologis said in a presentation that it would “hire a number of Duke Realty personnel,” although specifics were not
available at the time of the mid-June announcement.
The deal came as demand for industrial space in New Jersey remained strong through the second quarter, with rents continuing to rise, but amid growing economic unease and signs of a potential pullback by tenants. A report by CBRE found that northern and central New Jersey saw gains in overall occupancy
for the 22nd straight quarter with 1.5 million square feet in so-called net absorption, yet the research described it as a modest bump and noted that leasing activity was slower than earlier periods.
“Looming economic uncertainty created some headwinds for New Jersey’s industrial market, albeit
That points to continued hiring in the region for Prologis, which recently tapped construction industry veteran Erik Egger as a new vice president and development officer in New Jersey and New York. Finding additional staff is no easy task in
a competitive labor market, but Harty’s team has found success with candidates that might not have direct experience with industrial space,
but have proven themselves in other asset classes, such as office or retail.
That may not have been an option in prior cycles, when the warehouse and logistics sector was far less
Located at One Meadowlands Plaza, Prologis’ 11,000-square-foot East Rutherford office is the nucleus of its operations in the region.
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fundamentally sound, causing employment gains to slow as economic conditions have tempered from just a few months ago,” said Thomas
Monahan, a vice chairman at CBRE. “The quarter’s leasing volume was softer compared to previous periods, reflecting both the lack of available product but also waning occupier demand.”
Even so, Harty said Prologis was bullish on the region, noting that “customers are still proactively leasing space because it is a tight market with less than 2 percent vacancy in New Jersey.”
“There are several key drivers for logistics real estate the past few years that include e-commerce, supply chain volatility and material and labor shortages,” he said. “We don’t see that going away in the near term, so we do see sustained demand to offset those issues.”
Courtesy: Prologis