In 2023, preleasing activity in the New Jersey industrial market experienced a decline

Over the last decade, the average occupancy rate upon the delivery of new industrial space has been 66.5%, underscoring the robustness of the industrial real estate sector in New Jersey.

In 2022 and 2023, the average occupancy rates at delivery stood at 57.4% and 45.4%, respectively. These figures represent a noticeable decline from the rates observed in 2020 and 2021, which were 70.8% and 89.8%, respectively. This decline is attributed to an increased influx of inventory into the market, coupled with macroeconomic uncertainties spanning the period from the beginning of 2022 to the end of 2023.

The years 2022 and 2023 seem to signify a return to a "normalized" preleasing activity, aligning with the pre-COVID period of 2014 to 2019. This suggests that a healthy balance is being restored to the supply-demand dynamic in the industrial real estate sector.

February 12, 2024

US-NJ-NJ New Jersey