-NJ Industrial Market Report
During the first Quarter, Northern New Jersey Industrial Real Estate data shows the overall leasing and absorbtion of 921,766 square feet. Mainly in the Hudson and Bergen corridors- along the Hudson waterfront and centered around the Route 46/23 areas.
In the Central region, the New Jersey industrial market ended the quarter with 1.14 million sq ft of leased out space. The most activity was in the 287/Exit 10, Exit 8A and Somerset submarkets, which had a combined total of 873,496 sq ft of leased space.
‘Asking’ net lease rates in Q1 stood at $5.90 per sq ft- which represented only $0.26 less or a 4.66% decrease from the mean asking rents posted just a year ago. While the asking rents in Central New Jersey stayed basically stable, with the Trenton/295 submarket yielding the highest asking rate increase, which was up $0.18 per sq ft.
Overall, gross absorbtion remains negative- around 9 million square feet of space and the overall vacancy rate stood at 9.2%- up from 8.7% Q4. Subletting activity has and continues to increase, a sign that companies are reducing their real estate holdings in this deeply troubled economy.
- Negative Gross Absorbtion: 9(+\-) million
- Overall vacancy rate: 9.2%
- Northern NJ space leased: 921,766 SF
- Central NJ space leased: 1.14 m SF
Recovery in the industrial market is expected to lag behind retail and office space which will ultimately prolong the efforts of investors and corporate holders to normalize vacancy and absorbtion rates.
Of course industrial/flex space is directly affected by retail sales and the entire retail sector, so the sooner retail rebounds- the sooner the industrial market will see recovery as well.
All of NJ real estate, commercial and residential recovery is resting on the states and the national economic climate. Depending on how quickly the country can dig itself out this current deep recession/mild depresion.
