New Jersey’s Industrial vacancy rate in the fourth quarter dropped to 6.4 percent, which is significantly down from 8.2 percent a year earlier (CoStar). Nearly 4 million square feet of industrial space was leased during the fourth quarter, bringing the total for 2015 to 12.5 million square feet. The two largest leases during the fourth quarter were a new
571,000-square-foot lease by List Logistics at 75 Mills Road in Edison and a 500,000-square-foot renewal by LG Electronics USA at 380 Deans Rhode Hall Road in South Brunswick.
Industrial builders and investors alike have come to the forefront of this increased demand by completing 3.3 million square feet of new industrial space during 2015, much of it in the Central Jersey market. The state currently has nearly 4 million square feet of warehouse space under construction in 2016 and that number is expected to grow as demand is still strong. We look to 2016 for just as high of a demand and many transactions and construction to be completed.
The Blau & Berg Company
Alessandro (Alex) Conte
March 4, 2016