Led in large part by northern and central New Jersey, industrial leasing in the Northeast bounced back in April after a slowdown earlier in the year.
JLL: With demand unrelenting, ‘banner’ Q4 sets up blockbuster year for N.J. industrial market
CBRE: New Jersey workforce grows amid rising industrial, logistics demand
CBRE: Lease terms continue to grow in booming N.J. industrial market
Retailer demand moves toward record-breaking absorption in 2018
Changes in consumption patterns continue to shift retailer demand away from brick-and-mortar storefronts to industrial facilities with immediate access to large swaths of the U.S. population. In 2017, traditional and e-commerce retailer requirements exceeding 200,000 square feet totaled 7.8 million, representing a 120 percent increase over the 2016 total of 3.6 million.
Amazon, retailers fuel Q4 industrial gains in N.J.
Demand for large blocks of space accelerates
Trend Watch Nov. 28: Big-box leasing activity continues a climb
Twelve leases greater than 500,000 square feet closed throughout northern and central New Jersey, an increase of 33.3 percent year-over-year and a pace expected to outpace year-end totals for 2016. Big-box leasing has tripled as traditional retailers and e-commerce companies —representing 75.0 percent of big-box leasing for 2017 — continued to expand their distribution networks.
Trend Watch Nov. 6: E-commerce drives surge in distribution-related job posts and wages
Urban logistics set to change industrial real estate’s competitive landscape
The rising demand for sites that will support urban logistics centers has driven growth in Northern New Jersey, while also creating competition among developers, as forgotten industrial markets reemerge. Retailers, parcel carriers and food and beverage companies have all increased their demand for industrial space less than ten miles from Manhattan. Formerly obsolete locations throughout New York’s boroughs are reemerging as competitive alternatives to the New Jersey markets.