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

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.

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