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a new 315,389-square-foot FedEx Ground facility at the south end of the property.
The remaining acreage served as excess trailer parking for a nearby NRS facility until 2020, when it opted to unlock additional value by building a new Class A warehouse.
It figures to do exactly that in a market that has normalized after its unprecedented surge during the pandemic, but is still tight
by historical standards. That’s especially so in the 66 million-square- foot Hudson waterfront submarket, where industrial vacancy at midyear was 3.9 percent, according to data from CBRE. The firm also found that asking rents for Class A space in the submarket were just under $25 per square foot, trailing only Newark.
Walsh said his firm did not consider using the site for its own logistics business — long known as National Retail Systems — which is focused largely on picking up containers from nearby ports and transferring the goods to domestic trailers. That requires cross-docked facilities, he
said, whereas the loading docks on the Secaucus Road building will be confined to one side and thus ideal for a warehouse user.
The leasing team has already fielded inquiries from would-be tenants, but expects interest to accelerate heading into the fall.
“A lot of tenants really start to pay more attention to it when they see the walls go up,” said Brody, who is marketing the property alongside JLL’s Rob Kossar. That was slated to take place around mid-September.
Subdividing the building is a distinct possibility, Brody said, noting that the submarket historically has attracted smaller to midsized users in the 250,000-square-foot range. It also speaks to a current trend in the asset class. According to JLL, leasing activity in northern and central New Jersey reached 7.9 million square feet in Q2, which was slightly below the pre-pandemic average of 8.3 million square feet. But the firm found that interest was especially strong in buildings of 250,000 square feet or smaller, noting that tenants
Plans for 1075 Secaucus Road in Jersey City call for 490,429 square feet of industrial space with 40-foot clear ceiling heights, 49 dock doors and one drive-door, along with parking for 445 cars and 40 trailers on a nearly 40-acre site.
in that range inked 13 new Class A deals during the quarter, higher than the quarterly average of 8.8 from 2016 to 2019.
As with many sites in northern New Jersey, the Secaucus Road property is within a one-day drive of roughly one-third of the U.S. population. It also allows users to get to and from Port Newark-Elizabeth without paying a toll, Brody noted, enhancing the appeal of a property that allows 53-foot trailers to move in and out without obstruction.
It all adds up to a strong option at a time when import cargo volumes at the Port of New York and New Jersey are on the rise.
“If you take those large numbers,
it just bodes well for our market here and our location,” Brody said. “So we’re very excited that there’s just more containers coming in, which creates more demand for our property, and ... we’re sitting right in the heart of a building to get them closer to the population.” RE ”
TM 23
Courtesy: JLL
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