Transwestern issued a report confirming that New Jersey industrial space continues to be in very high demand.

Transwestern reported, “Ten leases greater than 150,000 square feet were signed during the first quarter, including five new leases, four of which are in newly constructed properties.”

“Following another quarter of strong occupancy gains, the vacancy rate in New Jersey’s industrial market reached its lowest level in nearly 17 years.  As of Q1 2017, 5.1% of space remains vacant, compared to 5.5% the previous quarter, the market’s strongest quarterly improvement since Q4 2015.  In addition, the current figure represents a robust improvement of 1.4 percentage points from 6.5% 12 months ago.  For tenants seeking new space, there is 10.3 million square feet of industrial space currently under construction in New Jersey, though more than half of it is preleased. Secondary options have also come available as some large blocks were returned to the market during the quarter.”

“The State continues to be the target of industrial leasing activity. As of Q1 2017, New Jersey has experienced 16 consecutive quarters of positive net absorption. Moreover, for the third consecutive quarter, more than 10 million square feet was absorbed over a 12-month period, a feat that hadn’t been achieved since 2003. While tenants are leasing space throughout the State, the most active submarkets during the past 12 months include Exit 8A, Exit 10/Edison and the Meadowlands. Companies in the retail/wholesale and transportation/logistics sectors continue
to drive demand while the manufacturing industry is gaining steam. While manufacturing growth is surely a positive, the State needs to continue addressing the issues of a shortage of qualified workers within the industry.”