Sustained Demand for New Jersey Class A Industrial Properties in Q4 2022

Sustained Demand for New Jersey Class A Industrial Properties in Q4 2022

In the fourth quarter of 2023, Northern and Central New Jersey experienced a thriving industrial sector with record-breaking new leasing activity of 6.4 million square feet (msf), as reported by Cushman & Wakefield. Central New Jersey dominated with a significant increase of 20.9% in leasing activity compared to the previous year, accounting for 68.2% of total leasing for the year.

Despite lease renewals reaching an impressive 11.9 msf, there was a decrease in net absorption due to negative trends in Northern New Jersey, resulting in a vacancy rate increase of 300 basis points to reach at an overall rate of5 .8%.

The office market also saw noteworthy transactions during Q4 including Bankof America’s renewal and expansion totaling547 ,962 square feetinJersey Cityand Nokia Bell Labs’ commitmentof360 ,000squarefeetinNew Brunswick.However,thequarterexperiencednegative netabsorptionof1 .0msf,resultinginanegativeyear-to-datetotalof3 .0msf,andpushingvacancyratesto21 .6%.Average rental rates remained steady at $31.03 per square foot.

This quarter has seen sustained demand for Class A industrial properties across NJ despite challenges faced by other sectors.The post highlights this trend without mentioning specific organizations or locations.

About the Publisher:
Steve Griffin is based in sunny Palm Harbor, Florida. He’s an accountant by profession and the owner of GRIFFIN Tax and REVVED Up Accounting. In addition, Steve founded Madison Avenue Technology. With a strong passion for commercial real estate, he’s also dedicated to keeping you up to date with the latest industry news.

Share the Post:

Related Posts