The state’s industrial market is firing on all cylinders, but just how long will it last? A panel of leading owners and brokers tackled that very question last week, gauging everything from rental rates to the demand from institutional investors. And while the recent political turmoil has created some uncertainty, they said New Jersey’s location and the growth of so-called last mile distribution needs will ensure the market’s continued strength in the year ahead.
Industrial leasing in New Jersey kept up its torrid pace through the end of 2016, capping off a year that saw occupancy gains of more than 10 million square feet.
An online furniture seller has leased a 143,000-square-foot warehouse in Elizabeth to help support its rapid growth, following a deal brokered by Colliers International.
A series of high-profile deals, along with research by a top real estate services firm, shows that the demand from e-commerce users is overwhelming in the Garden State. And it shows no signs of abating, as online retail businesses and on-demand food services only continue to grow.
Sitex Group has added to its ever-growing portfolio of northern New Jersey industrial space, acquiring a 55,000-square-foot building in Moonachie.
Research by the firm has found that rents for warehouse and distribution space, particularly along the New Jersey Turnpike, are shattering the asking prices of landlords, as the competition among tenants becomes especially fierce.