Demand Continues to Taper off Record Levels
The New Jersey industrial market continued to revert to more normal levels of demand during the second quarter of 2023. Leasing activity totaled 6.4 million square feet, a decrease of nearly 25% from the previous quarter and 28.8% from the second quarter of 2022. Cooling activity, increased sublease supply and several vacant construction deliveries contributed to an increase in the availability rate, which stands at 5.1%, up from a record low of 3% recorded one year ago. With options for tenants still at or near historic lows across several key submarkets, landlords continued to push rental rates as average asking rents increased 2.8% over the quarter to $16.95/SF.
