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NJ Q2 2021 New Jersey Industrial Market Report

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New Jersey's industrial market continued to benefit from a shift in consumer buying habits that resulted in a record first half of the year. Leasing activity reached 29.1 million square feet (MSF) at the halfway mark, compared to 19.3 MSF last year and 21.3 MSF during the same period in 2019. Strong demand reduced the availability rate to record lows, which drove the average asking rent to an all-time high. 

Class A Space Remains Most Sought-After Property Type

Leasing activity during the second quarter totaled 13.4 MSF and was driven by occupier demand for class A product, as the top nine of the top 10 transactions occurred in class A properties. Demand for Class A product and new construction has been strong this quarter, as supply constraints continued to impact the industrial market. Several transactions completed during the quarter underscored tenant preference for new product. The largest was OmLog’s 607,279 SF lease at 1000 Rand Boulevard in Phillipsburg followed by Dream on Me’s 544,050 SF pre-lease for both proposed buildings at 47 Veronica Avenue in Somerset. After a quiet first quarter, Amazon made its presence felt in the second quarter, signing five new leases totaling 1.2 MSF of class A space, the largest of which was a 400,000 SF pre-lease at 65 Baekland Avenue in Middlesex. At 7.2 MSF, class A leasing accounted for 53.7% of the overall activity, which is notable considering the class A property group accounts for only 20.0% of the total inventory. 

 

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NJ Q2 2021 New Jersey Industrial Market Report

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John Obeid

Senior Director, Tri-State Suburban, Research

Parsippany

John Obeid leads the research operation for the NJ office of Colliers International as Senior Director of Research.  With more than 8 years of experience in the commercial real estate industry, John’s research expertise spans across multiple business lines, including office, industrial and retail.

John joined Colliers International in 2014 and is primarily focused on creating a business development strategy in research with a concentration on analytics and output. He is responsible for monthly and quarterly market reports, quarterly market reports and overall maintenance of the company’s research databases. He also coordinates with all of Colliers’ business lines to extract appropriate market data to conduct asset-level analysis for Colliers’ clients. Prior to joining Colliers John led the New Jersey research department at CBRE.

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