From the Record:
As consumers increasingly shop online, the stuff they buy is filling up New Jersey warehouses, pushing industrial vacancy rates to historic lows, Cushman & Wakefield reported Monday.
The vacancy rate for northern and central New Jersey fell to 5 percent in the second quarter, and asking rents reached their highest levels since 2000, Cushman & Wakefield reported. The average asking rate for warehouse space was $6.55 a square foot, up more than 26 percent over the past three years.
Rental activity was most robust in the Meadowlands and at Exit 8A of the New Jersey Turnpike, according to Jason Price, Cushman & Wakefield’s research director for the tri-state suburbs.
Online sales are the main engine driving the demand for warehouse space.
“As quality industrial space in northern and central New Jersey dissipates, demand is anticipated to remain robust through the second half of the year,” said Andrew Judd, Cushman & Wakefield’s New Jersey market leader.
Areas around Port Newark/Elizabeth command the highest asking rents for warehouse space. The largest amount of space leased during the quarter was at Exit 8A, with 2.8 million square feet of leases. The Meadowlands recorded 1.5 million square feet of leases.
Bergen County posted a 6.6 percent vacancy rate and average rent of $7.19 for warehouse space. Passaic had a 5.4 percent industrial vacancy rate and average warehouse rent of $6.35.