Press Release brought to you by CBRE



SADDLE BROOK, N.J. (JANUARY 25, 2012) –The New Jersey industrial real estate market is experiencing numerous signs pointing toward imminent recovery, including significant positive net absorption, record leasing velocity, and increased investor activity, according to findings in CBRE New Jersey’s Fourth Quarter 2011New Jersey Industrial MarketView Report.


“The current real estate environment has helped coax industrial tenants who had been sitting on the fence to finally realize that the time was right to capitalize on opportunities which resulted in a revival of activity in 2011 as well as brought about drastically diminished availability and a bold return of market fundamentals,” said William Waxman, CBRE executive vice president. “This was accomplished in spite of discouraging employment news and worldwide economic woes and solidifies New Jersey’s position as an attractive and strategic industrial market for tenants and investors.”


One standout that bodes well for the future is that the fourth quarter’s absorption of 3.59 million sq. ft. surpassed historical records set in earlier quarters of 2011 and represents the fifth consecutive quarter of positive market performance as well asthe largest quarterly volume of absorption seen in over ten years.At the close of the year, sites in Northern New Jersey absorbed 850,000 sq. ft., while the central portion’s absorption of 9.71 million sq. ft. demonstrated its resiliency and carried the industrial market to 10.56 million sq. ft. of positive absorption overall.


In the fourth quarter, there was 5.77 million sq. ft. of new leasing, resulting in an annual velocity of 25.78 million sq. ft., which was the highest volume of leasing in seven years and up 34.8 percent from 2010.


The average asking lease rate for industrial property in New Jersey was $5.15 per sq. ft., $0.03 lower than the third quarter’s rate of $5.18. Northern New Jersey experienced a $0.08 drop, while Central New Jersey’s rate decreased by $0.02.


Mindy Lissner, CBRE executive vice president, anticipates that increased competition in response to strong

leasing demand combined with less space, especially in class A properties, will soon cause asking lease rates to further stabilize with overall rates beginning to increase by the later half of 2012.


“New Jersey’s industrial real estate market made significant headway in 2011 with improvements in each quarter that set the stage for additional improvements in 2012,” Lissner said.  “For example, tenants are more willing to commit to leasing new space as opposed to renewing and we expect speculative construction and port activity will both grow in the coming year as space tightens and the economy improves.”


The amount of sales activity was another high point with 4.89 million sq. ft. of sales in the fourth quarter alone. Sales activity for the year totaled 14.51 million sq. ft. This exceeded 2010’s sales by 37 percent and more than doubled 2009’s sales volume.


Top transactions in the quarter included LG Electronics USA, Inc.’s 751,000-sq.-ft. lease renewal at 380 Deans Rhode Hall Rd. in South Brunswick and Central Garden & Pet Company’s new lease for 340,000 sq. ft. at 1100 Cranbury South River Rd. in Jamesburg. On the sales front, KTR Capital Partner’s acquisition of the 1.7-million-sq.-ft. Interstate Boulevard portfolio in South Brunswick and Exeter Property Group’s purchase of 258 Prospect Plains Rd. in Cranbury, which totals 886,839 square feet, were highlights.


Additionally, five construction projects were completed in the quarter, including a 298,000-sq.-ft. build-to-suit for Coca-Cola at Exit 8A, and a 190,000-sq.-ft. speculative construction project in the Hudson Waterfront. There are currently seven properties totaling 901,000 sq. ft. under construction in the state.



About CBRE Group, Inc.

CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services firm (in terms of 2010 revenue). The Company has approximately 31,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our Web site at




01/25/2012 - 21:04



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