Big Box Leasing Drives Strengthening New Jersey Industrial Market
— NAI James E. Hanson Releases 2013 Mid-Year Industrial Market Overview —
HACKENSACK, N.J. (Aug. 2, 2013)– Propelled by an increase in leasing activity among big box users, the Northern and Central New Jersey industrial market continued to improve in the first half of 2013, according NAI James E. Hanson’s Mid-Year Industrial Market Overview.
The report from the leading New Jersey-based commercial real estate firm shows that vacancy rates, which have steadily decreased since 2010, registered 7.9 percent during the second quarter of 2013 — a 0.5 percent drop since the end of 2012. Furthermore, year-to-date net absorption registered a positive 640,996 square feet, indicating that the Northern New Jersey industrial market will continue to perform well throughout the remainder of the year.
“New Jersey’s industrial market has continued to strengthen in 2013, with leasing activity totaling more than 12.3 million square feet as of the end of June,” stated William C. Hanson, SIOR, president of NAI James E. Hanson. “The improvement is especially evident in Morris, Bergen and Middlesex counties, where nearly three quarters of the year’s leasing activity has taken place.
During the first half of 2013, a total of 82 industrial properties were sold, with a total sales volume of more than $829 million.
Three new industrial facilities were built, totaling nearly 1.2 million square feet. Additionally, there are currently five industrial properties under construction, totaling more than 2.1 million square feet.
Other highlights of NAI Hanson’s 2013 Industrial Mid-Year Market Overview include:
· The overall average asking rent, currently $5.15 per square foot, remained stable during the first half of 2013. Flex rental rates, currently $11.75 per square foot, increased by $0.54. Warehouse rates remained stable at $5.10 per square foot.
· Essex and Somerset Counties boast the lowest vacancy rates in the state, currently 5.2 percent and 5.7 percent respectively.
· The majority of tenants were attracted to the Exit 8A and Exit 10/12 submarkets, the Meadowlands and the Port Region.
· With a 92 percent occupancy rate, the Exit 8A submarket boasts the lowest vacancy rate in Northern and Central New Jersey for big box industrial space (7.3 percent). The 8A submarket also demands one of the lowest asking rental rates ($5.20 per square foot).
· The Meadowlands submarket demands the highest rental rate ($6.02 per square foot) due to its proximity to New York City.
To download the 2013 Mid-Year Industrial Market Overview, visit http://www.naihanson.com/flyers/Midyearindustrial.pdf
About NAI James E. Hanson
Since 1955, NAI James E. Hanson has been a leading independent full-service brokerage commercial real estate and property management firm serving a diverse client list. NAI Hanson offers its clients strategic solutions and provides comprehensive value-added services such as office, industrial and retail brokerage, investment sales, land sales, management, government services and financing expertise.
NAI Hanson is also one of the original members of NAI Global, an international commercial real estate network with over 350offices spanning the globe. For more information on NAI James E. Hanson, contact William C. Hanson, SIOR, at the company’s Hackensack office at 201-488-5800 or visit www.naihanson.com.