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The Market in Review

Published By: Bussel Realty Corp

With the consumer sector of the economy very healthy, consumer confidence at a 15-year high, and employment and wage  growth  steady  last year, the Northern/Central Industrial market continued to experience record setting growth and strength going into 2017.

Consumer products and e-commerce distribution are likely to remain the largest generators of demand for industrial space in 2017.  A “positive wildcard” are the manufacturing and goods-producing sectors which could have significant expansion. The new Trump Administration appears to be committed to growth in these blue-collar industries, but can he deliver?

However, higher-than-expected inflation and subsequently higher-than-expected interest rates could put a damper on growth. Increased interest rates could slow down consumer spending and businesses investment reducing economic activity and demand for industrial space.

New Jersey industrial real estate sales prices are in the stratosphere at over $125 per square foot for quality product and do not appear to be coming back down to Earth anytime soon.  Rental rates are following suit, at rates unheard of in the last 40 years, in particular for well-located Class A and B properties.


We don’t foresee any slowdown in pricing as availability rates continue to decline despite the continued spec development of millions of square feet, which is typically preleased in large part prior to completion.  Sellers and landlords are clearly in the driver’s seat and command the upper hand at this time.


Release Date04/17/2017 - 03:23


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