From NJ Spotlight News:
Warehouse industry reports point to possible slowdown
Recent data from state and industry sources shows a sharp slowing in the number of building permits issued for warehouse construction last year in New Jersey. Those sources also show a new rise in vacancies, and a lower rate of increase in rents for the giant buildings, which have been springing up throughout the state for several years.
Analysts and companies that collect data on the industry say the breakneck pace of growth over the last several years can’t be sustained because supply from developers has already exceeded demand from customers. High interest rates are deterring investors from adding more space and uncertainty over economic growth is sapping confidence in any further expansion, they say.
The data on rents, vacancies and building permits suggest that warehouse tenants are less willing to pay top dollar for space; that more of the vast structures are remaining empty after a frenzy of speculative construction, and that developers are scaling back plans to build more of them.
Industry sources also note that developers continue to feel headwinds from warehouse opponents fighting the buildings at the local level. In the Legislature, two dozen warehouse-related bills first introduced last year now await consideration by lawmakers in response to rising local concern that the buildings are snarling traffic, worsening air quality, and contributing to warehouse “sprawl.”
According to data from New Jersey’s Department of Community Affairs, the area covered by building permits for “storage” buildings — mostly warehouses — in 2023 dropped sharply to 16.2 million square feet, a decline of about half compared with the previous two years, and the lowest level since 2018.
First
…that more of the vast structures are remaining empty after a frenzy of speculative construction…
Riding down and up the NJ Turnpike from Dover, DE last weekend, I couldn’t help but notice the massive warehouse structures newly built or under construction. The majority were in the Cranbury area or between exit 5 to exit 9. It’s been a year so I didn’t realize how big some of these structures are.
Filled with awesome products produced in China. Hehe.
Riding down and up the NJ Turnpike from Dover, DE last weekend, I couldn’t help but notice the massive warehouse structures newly built or under construction. The majority were in the Cranbury area or between exit 5 to exit 9. It’s been a year so I didn’t realize how big some of these structures are.
I guess some of these local residents fighting against warehouse construction in their towns would be OK with apartment construction. I wonder when apartment construction will slow down?
Open House in the People’s Republic of Montclair. $1.25 million and just under 22K in taxes. Think of how nice the rainbow flag will look like on the front lawn. The new owners will no doubt be previous renters from Park Slope… a dual income couple with degrees from NYU or Columbia:
https://www.njmls.com/listings/index.cfm?action=dsp.info&mlsnum=24011798&openhouse=true&dayssince=15&countysearch=false
I wonder when apartment construction will slow down?
It’s become a disease. When demand tanks, they can accept section 8 in previously haughty environs. The 15 minute special in Tammy’s apartment while be the buzz all over towns like Wyckoff and Glen Rock. After getting the ‘S’ series detailed on a Saturday morning, what else is there to do but stop by Tammy’s place.
Baby Boomer professors are starting to join the college campus protests with the students. These old geezers are against what they call high handed tactics by some university administrations and police tactics. They are also concerned about what they see as rising authoritarianism on college campuses. Leftist professors complaining about rising academic on college campuses. You can’t make this stuff up!
Open House in the People’s Republic of Montclair. $1.25 million and just under 22K in taxes.
Cute tiny house, clearly for tiny people – unless you like walking with your head tilted 45 degrees.
Tiny houses make your schlong and biceps appear larger.
This house is in a country club in most expensive town in DFW
Same listing price as Fast eddies montclair house
https://www.realtor.com/realestateandhomes-detail/1109-Longford-Cir_Southlake_TX_76092_M88070-60224
I am in Elizabeth today for soccer. For 1.2 million you get this, with the ever present noise of air planes taking off and landing too.
https://www.zillow.com/homedetails/144-Magnolia-Ave-Elizabethport-NJ-07206/347788561_zpid/
Juice
And people in the north wonder why Texas and metro regions in the south are growing
Regarding the lead article.
Logistics is NJ biggest growth driver. I posted about this development ten years ago. The widening of the Panama Canal, the raising of the Bayonne Bridge, the overhaul of NJTP, the adding rail spurs, the completion of I-95 off the PA Turnpike Extension.
Within 24 hours, 100M people can be reached from Port Newark. This is our advantage. Embrace it. We are ready and we smartly planned way ahead for it.
The Suez Canal situation only helps. The idiot unions in Southern California stabbed themselves in the back during COVID.
The only thing happening right now is a rationalization of capacity after COVID. We will crush it for a long time.
When you watch the weather forecast and you see the temperature around, Newark is a few degrees higher than any place else in the entire area, that is literally the heat being generated by economic activity.
Juice/ Hold: And it’s butt ugly too! But, we are special here, a different breed. I would say a stupid self absorbed breed as well.
That house above in Elizabeth looks like a prop from a Batman movie.
College is about education. Right now all that are there are getting a great education. They are learning about each other, the law, the police, finances of their school, their fellow classmates and how they think, religion, race, violence, kindness, sexism, moderation vs radicalization, materialism, death and destruction.
All of the wonderful things you don’t normally get there, and that you don’t learn in a book.
Welcome to life, children. Now go get your carry permits and start strappin’. No one cares about papyrus, the Mesopotamia, pollution, water buffaloes, or global warming. It’s the money. Follow the money.
3b says:
May 5, 2024 at 10:16 am
Baby Boomer professors are starting to join the college campus protests with the students. These old geezers are against what they call high handed tactics by some university administrations and police tactics. They are also concerned about what they see as rising authoritarianism on college campuses. Leftist professors complaining about rising academic on college campuses. You can’t make this stuff up!
And the strapping youth making monkey sounds at the black professor in Mississippi while his friends laughed, yeah, something tells me the “melting pot” hasn’t reached a high enough temperature yet.
It’ll get there. Takes time.
Chemistry is fun. Especially when you try to put chemicals together that don’t like each other. Hehe.
They are learning.
Pro-Palestinian protesters at USC comply with school order to leave their encampment.
They are learning.
Yeah they saw the injuries from the Rubber bullets at UCLA.
https://twitter.com/DmodosCutter/status/1786167999189106892
Juice,
That’s correct. It’s all a lesson.
For better or for worse. But everyone will remember their experiences.
The scars will turn them into what they become.
Closest victory in NASCAR history for those wanting to see the last restart and last two laps. .001 seconds between 1st and 2nd.
Is butt crack surgery a real thing?