NAI James E. Hanson gathered some of our leading brokers to provide insights on what the market holds for a variety of asset classes as well as key factors that will impact our industry throughout 2019.
Jeff DeMagistris, SIOR, Senior Vice President, on the Industrial Market
High demand and constricted supply have driven a robust market for industrial throughout northern and central parts of the state in 2018. With all but the largest tenants pricing out of Bergen, Essex and Hudson markets, I expect the search for industrial space will be largely driven to markets to the west, north and south in the coming year.
The explosion of the Turnpike industrial markets over the past several years, exemplifies the trajectory of this trend but even these markets are becoming more difficult for small to medium industrial users to afford.
In the second half of 2018, the secondary industrial markets to the north, west, and south, which offer an abundance of land and proximity to several significant east-west transportation arteries, were beginning to gain traction all over the state and I anticipate the increased leasing velocity and steadily declining vacancy rates in these areas to lead to strengthening secondary markets into 2019.
To learn more about NAI James E. Hanson’s industrial sales and leasing team, please contact Jeffrey W. DeMagistris at firstname.lastname@example.org.