Teterboro, N.J. – NAI James E. Hanson, the largest New Jersey-based full-service independent commercial real estate firm, released its 2Q 2026 Industrial Report, showing continued demand for high-quality industrial space even as overall vacancy edged higher to 7.1%, a rate that remains well below the national average.
Large-scale users and third-party logistics (3PL) firms continued to drive activity in the market, prioritizing well-located Class-A product with high ceilings. Through June, the market recorded 12 transactions over 300,000 square feet, bringing year-to-date leasing volume to 14 million square feet. Average asking rents, while still elevated by historical standards, have begun to level off after recent spikes, with Class-A space averaging $16.25 per square foot and the overall market averaging $13.87 per square foot.
New construction deliveries continued to slow, with 3.9 million square feet delivered during the first six months of the year, compared to 4.6 million square feet over the same period in 2025. As of mid-year, 7.6 million square feet remained under construction, with delivery expected by year’s end.
“Even with vacancy ticking up in pockets of the market, the underlying fundamentals in Northern New Jersey remain strong,” said James Delmonte, Vice President and Director of Research at NAI James E. Hanson. “Large users continue to compete for well-located, high-quality space, and with new construction slowing, that demand should keep the market well-positioned even as it continues to normalize from the historic lows we saw during the pandemic.”
Submarket performance reflected that same demand-driven pattern, with the tightest markets continuing to see the strongest activity:
- The Ports submarket held steady at 6.6% vacancy, with a limited construction pipeline of 632,218 square feet positioning the submarket to tighten further over the next year. Class-A rents in the submarket commanded a nearly $8.00 per square foot premium over the broader market.
- Exit 10/12 vacancy declined to 6.4% year-over-year, led by the quarter’s largest lease, an 800,000-square-foot deal signed by GoFo, Inc. at 1160 State Street in Perth Amboy.
- The Meadowlands remained stable at 6.0% vacancy, with average asking rents rebounding to $16.24 per square foot, among the highest in the region.
- Exit 8A posted a substantial increase in leasing activity, including a 600,000-square-foot lease signed by DSV at 201 Middlesex Center Boulevard in Monroe, pushing average asking rents to $15.68 per square foot even as vacancy rose to 7.5%.
- The 46/23/3 Corridor stayed consistent at 5.4% vacancy, supported by a limited construction pipeline that has kept the rate below 6.0% for three consecutive years.
- Exit 7A saw a localized spike in vacancy to 12.3% after roughly 850,000 square feet came to market at a Hamilton Township property, though leasing activity in the submarket continued, highlighted by SunRun’s 231,850-square-foot lease at 13 Applegate Drive in Mercer County.
Investment sales activity remained active during the first half of the year, led by Goodman North America Management, LLC’s $360 million acquisition of a 1.7-million-square-foot property at 200 Route 1 in Newark from Anheuser-Busch.
To download the full 2Q 2026 Industrial Report, visit https://www.naihanson.com/market-reports/.
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