Sustained demand continues to create record-high pricing and low vacancies across the market
Teterboro, N.J. (October 5, 2022) – NAI James E. Hanson, the largest New Jersey-based full-service independent commercial real estate firm, announces the release of its 3Q 2022 Industrial Report detailing leasing and sales data for key industrial submarkets.
Despite rising macroeconomic uncertainty across the nation impacting consumer confidence, northern and central New Jersey’s industrial market remained strong through the third quarter. Led by unwavering demand for well-located and easily accessible warehouses and distribution centers, overall asking rents in the market surpassed $12.00-per-square-foot (PSF) continuing the trend of quarter-to-quarter historical highs. The average rental price of $12.56 PSF across the state represented a near 18% increase when compared to 2021’s third quarter.
Emphasizing the persistent demand for well-located industrial space located near intermodal infrastructure and major population centers, the Meadowlands and Ports submarkets saw average asking rents reach highs over $16.00 PSF, with the Ports reaching $16.60 PSF. With all fourteen submarkets tracked by NAI James E. Hanson having increased pricing throughout this year, all but two submarkets, Exit 7A and Warren & Sussex, have eclipsed $10 PSF.
While leasing activity measured through the first three quarters of this year is down at 17.4M square feet compared to 20.3M square feet through the same time last year, it is not a function of less demand, but rather less supply available as the vacancy rate across the 14 submarkets has fallen under three percent. To keep pace with the increased demand, over 16M square feet are currently under construction and slated for delivery over the next five quarters in northern and central New Jersey. More than 70% of the under-construction square-footage will be delivered in the Ports, Exit 10/12 and Exit 7A submarkets.
“As of yet, we have not seen the uncertainty in the national economy, directly impact the imbalanced supply and demand curve found in our region,” said James Delmonte, VP & Director of Research at NAI James E. Hanson. “Tenants are still being forced to expand their search beyond the historically popular submarkets which has continued to drive up the record-high rates we’re seeing in locations such as the Exit 8A submarket. While there are some warning signs that the market could soon cool off in the coming months, the industrial market continues to show strength supported by unprecedented demand from e-commerce and big box retailers.”
To access NAI James E. Hanson’s 3Q 2022 Industrial Report, please view the link provided below: https://www.naihanson.com/wp-content/uploads/3Q-2022-Industrial.pdf
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About NAI James E. Hanson
Since 1955, NAI James E. Hanson has been a leading independent full-service brokerage commercial real estate and property management firm serving a diverse client list. NAI Hanson offers its clients strategic solutions and provides comprehensive value-added services such as office, industrial and retail brokerage, investment sales, land sales, management, government services and financing expertise.
NAI Hanson is also one of the original members of NAI Global, an international commercial real estate network with over 300 offices spanning the globe. For more information on NAI James E. Hanson, contact William C. Hanson, SIOR, at the company’s Teterboro office at 201-488-5800 or visit www.naihanson.com