New Jersey industrial real estate market reports
New Jersey industrial real estate market reports
4Q 2021 quarterly report
Another strong performance from the New Jersey market was reinforced this quarter through increasing base rents, a jump in sale pricing, and record level net absorption. Moreover, downward pressure on availability rates is leaving tenants with less leverage and dwindling concession packages. With these supply constraints persisting further, new construction is at a high with some developers starting to get creative through the repositioning of vacant office assets to industrial.
Economic conditions
Unemployment across New Jersey has declined to 5.5%, reaching its lowest level since March 2020.
Recovery rate
New Jersey industrial employment sectors have risen 6.8% in 2021, with the transportation, warehousing & utilities sector leading the way with 5.3% growth.
Industrial demand
Annualized leasing activity has been stable during the pandemic, sitting at 0.7% higher than the long-term average of the preceding 20 years.
Industrial supply
The overall vacancy rate for the New Jersey industrial market continued to decrease through Q4 2021, reaching a twenty-year low of 2.3%.
Pricing trends
Base rents have increased by 17.1% or by over $14 per square foot since the start of 2021.
Capital markets
High rents and low vacancy rates continue to attract investors, leading to higher valuations, which increased by 13.8% since the end of 2020.
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