New Jersey’s industrial market continued to exhibit remarkable market fundamentals and robust leasing volume amid supply constraints.
While the availability rate continued to sit at all time lows, leasing activity increased 48.3% quarter-over-quarter, to 11.0 million square feet (MSF) and was evenly distributed between the Northern and Central portions of New Jersey.
Activity this quarter was driven by manufacturing users and logistics companies, which accounted for half of the leasing volume. In one of the largest transactions of the quarter, Keurig leased 499,898 SF at 24 Applegate Drive in Robbinsville, while ZT Group International leased 425,000 SF at 1 Emerson Lane in Secaucus.
Sustained positive net absorption this quarter lowered the availability rate to 2.9% - the lowest recorded rate on record. Net absorption totaled positive 3.4 MSF, up 116.0% from last quarter, and was driven by strong pre-leasing activity in recently delivered product. 72.3% of the 2.4 MSF newly developed space was occupied, which contributed to 1.5 MSF of occupancy gains.