Cautious Optimism for NJ Industrial Real Estate Market at Start of 2012
The findings in CBRE New Jersey’s First Quarter 2012 New Jersey Industrial MarketView Report reflect another quarter of positive absorption and elevated leasing activity, but CBRE executives are maintaining a cautiously optimistic outlook.
New leasing velocity rose above six million sq. ft. for the third time in the past five quarters. 17 buildings traded ownership during the quarter. Prior to the first quarter of 2011, this volume of activity was not seen since the first quarter of 2007.
New Jersey’s availability dropped once again, although only slightly to 10.4 percent. It appears that a battle between north and south has sparked within the State. The gap in market performance between Northern New Jersey and Central New Jersey is quite measurable. Central New Jersey’s absorption, which amounted to 1.83 million sq. ft. in the first quarter, continues to outperform Northern New Jersey, which saw negative absorption of 1.08 million sq. ft.