Sustained demand continues to create record-high pricing and low vacancies across the market
Teterboro, N.J. (July 5, 2022) – NAI James E. Hanson, the largest New Jersey-based full-service independent commercial real estate firm, announces the release of its 2Q 2022 Northern and Central New Jersey Industrial Market Report detailing leasing and sales data for key industrial submarkets.
Despite macroeconomic challenges and the lingering effects of the COVID-19 pandemic, the report highlights the northern and central New Jersey industrial market’s continued record-breaking pricing velocity – currently standing at $11.91-per-square-foot (PSF), an increase of $1.82 year-over-year (YOY). In addition, every submarket aside from Exit 7A and Warren & Sussex currently stands above $10 PSF. The vacancy rate also continues to hover near all-time lows at 1.8 percent across the market, down from 2.2 percent at the same time last year.
Highlighting the sustained strong demand for supply chain industrial space located nearby intermodal infrastructure and major population centers, the Ports and Meadowlands submarkets continue to lead the region in pricing at $16.55 PSF and $16.40 PSF respectively. The Meadowlands’ record-breaking pricing is an increase of $2.85 PSF from the same time last year while the Ports submarket’s increase is a jump of $2.40 PSF YOY.
The elevated pricing environment in the Ports and Meadowlands submarkets has also continued to drive demand in secondary markets further to the west, east and south. The Exit 8A submarket that includes Jamesburg and Cranbury has seen the most dramatic pricing increase – up by $3.46 PSF YOY to $14.13 PSF. The market also led the region with the lowest vacancy rate standing at 0.8 percent of the submarket’s 73,493,180 square feet of rentable building area. Other market standouts include the Route 46/23/3 submarket which has seen a $2.30 PSF YOY increase to $12.63 PSF and the Exit 10/12 submarket that spans Carteret and Rahway with a $1.50 PSF YOY increase up to $13.75 PSF.
“Despite the turbulence of the past several years, the northern and central New Jersey industrial market has been the model of consistency,” said James. “With rapid pricing increases becoming the norm, the most significant story over this period continues to be the growth of markets such as Exit 8A and the Route 46/23/3 corridor. While supply chain challenges, rising construction costs and the myriad economic issues on the horizon will surely impact many players in the market, the underlying numbers across the region remain strong and I expect its trajectory to remain strong in the quarters to come.”
NAI Hanson’s research team has also recently published additional 2Q Market Reports for the Meadowlands Industrial, Medical Office and Office markets.