IRR-Coastal New Jersey Mid-Year Viewpoint 2015 Local Market Report - Industrial
The Coastal, NJ industrial market continues to slowly firm with stable rental rates and decreasing vacancy rates. There continues to be limited new industrial supply that has come on-line in the Coastal, NJ market over the past several years. As has been the case over the past several quarters, the Monmouth & Ocean County industrial markets tend to have lower vacancy rates than the Atlantic County market which continues to be negatively impacted by the contraction in the gaming industry.
Many of the casino operators have consolidated their operations and have vacated and/or sold industrial facilities in the region. Both Trump Taj Mahal and Balley’s have sold larger facilities in the Offshore Park in Egg Harbor Township. The Atlantic-Cape May submarket continues to be dominated by large block vacancies while properties of 20,000 SF or less reflect stronger occupancy levels. While the market is in recovery, the process has been slow due to low employment and population growth in the region.
One bright spot is the sale of the former Lenox China facility in Galloway Township. The 416,000± facility, which sold at a steeply discounted price is undergoing renovations and will be occupied by Barette Outdoor Living when completed. In the Monmouth-Ocean markets, there continues to be some smaller (<30,000 SF) buildings being added to inventory, generally on a build-to-suit basis. The lack of new supply added to the market over the past several years has kept vacancy rates in the sub-10%. We expect a continued recovery in the market accompanied by increasing rental rates and decreasing vacancy rates as employment growth strengthens and the economy continues to improve.
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IRR Mid-Year Viewpoint 2015 comprises a National Overview report and 300+ two-page Local Market Reports for all key property types as well as additional resources, including metrics methodology, graphs, and tables; these free reports may be downloaded from IRR’s site here.