Are you thinking about investing in industrial property in Newark, NJ? You’re not alone, many companies have seen its potential and considered it as a top choice.
This article will discuss why many Newark, NJ, industrial properties for sale are getting sold, and we will also highlight the best neighborhoods for investment.
Read this article to see why Newark could be the best move for your business.
Why Newark is Ideal for Industrial Real Estate
Newark is a top location for industrial real estate, thanks to its major transportation networks. Highways like the NJ Turnpike and I-95, plus rail systems, add to its connectivity.
Its closeness to major East Coast cities like Philadelphia adds to its appeal.
Economic and Business Climate
Newark’s economy benefits from programs such as the Urban Enterprise Zone program which allows businesses to charge a lower sales tax rate. It also offers tax-free purchases for capital equipment, facility upgrades, and expansions.
Additionally, NJEDA’s Real Estate Gap Financing Grant Program provides $10 million in grants to support real estate projects in distressed areas, addressing pandemic-related economic challenges.
Top Neighborhoods for Buying Industrial Property in Newark
Newark’s neighborhoods each offer distinct benefits for businesses seeking industrial properties. Here’s a closer look at the top neighborhoods and what makes them the best place to buy properties.
Port Newark/Elizabeth
Port Newark houses one of the largest shipping terminals, the Port Newark-Elizabeth Marine Terminal. It handles over 7 million containers a year, making it a vital hub for global logistics.
Businesses here benefit from direct shipping connections and NJ Turnpike exits 13 and 14 for quick truck transport.
Ironbound District
The Ironbound District blends industrial and commercial spaces, making it a unique area for businesses. Its proximity to Newark Penn Station and major highways adds to its appeal.
Warehouses and small factories thrive here, with easy access to Routes 1 and 9.
South Ward
South Ward offers large tracts of industrial land, perfect for big operations. Its proximity to Newark Liberty International Airport gives it an edge in air freight logistics.
The Weequahic Industrial Park serves as a hub for manufacturing and warehousing. With lower average prices per square foot than areas near the port, it’s a cost-effective choice for businesses.
Central Ward
The Central Ward is evolving into a mixed-use hub with industrial and residential opportunities. The properties here are compact but come with modern amenities and excellent transit access.
Investments like the Mulberry Commons Redevelopment Project add to the area’s appeal for innovative industrial spaces.
Doremus Avenue Corridor
This neighborhood offers vast outdoor storage and yard space, ideal for construction and logistics businesses. Located near the Exit 15E of the NJ Turnpike and close to Port Newark.
Major companies have benefitted from its infrastructure and zoning flexibility.
North Ward
North Ward is close to Route 21, which provides easy transportation access while keeping costs low. Landmarks like Branch Brook Park add a touch of green, making it both a practical and a pleasant location for most businesses.
Property Must-Haves You Should Look Out For
Newark’s industrial real estate market offers diverse properties, but understanding what to look for can save time and money. Here’s a detailed checklist to guide your search:
Size, Ceiling Height, and Loading Dock Availability
Logistics and warehousing businesses often need large spaces, ranging from 50,000 to over 200,000 square feet.
A ceiling height with an average size of 18 to 24 feet works for most warehousing, but newer facilities often have 30-foot clear heights for vertical storage.
Properties with dock doors, drive-in bays, or cross-dock layouts are also popular in Newark’s industrial properties.
Zoning and Permitted Industrial Uses
In Newark, industrial areas usually fall under I-2 or I-3 zoning, which allows heavy industrial and manufacturing operations. Knowing zoning rules helps your business stay compliant with local regulations.
Security for Logistics and Cybersecurity for E-Commerce
Properties in Newark often include gated access, surveillance systems, and on-site security services to prevent theft or unauthorized entry.
Security from online attacks is just as important, especially in the e-commerce industry. Facilities with strong IT systems provide a reliable security solution to safeguard customer data and avoid issues like malformed data.
Site owners must also address vulnerabilities flagged by systems like Cloudflare Ray ID to ensure their infrastructure is secure.
Current Real Estate Market Trends
As of the third quarter of 2023, New Jersey’s industrial real estate listings average sale price reached $241.75 per square foot, marking the highest quarterly average on record.
With tight inventory and a low vacancy rate, Newark offers competitive opportunities and an attractive average cap rate for investors considering a sale in the area.
Future Market Outlook
The Port Street Corridor Improvement project aims to improve access to Port Newark and the Elizabeth Port Authority Marine Terminal. It includes rebuilding the Port Street and Corbin Street interchange.
These upgrades aim to improve trucking operations and support the port’s growing activities, A move that will undoubtedly add value to Newark’s industrial real estate scene.
Close the Deal With Expert Guidance From Blau and Berg
Are you ready to invest in industrial property in Newark, New Jersey? Let The Blau & Berg Company guide you through the process with unmatched expertise and dedication.
With decades of experience in Newark’s industrial real estate market, we are a trusted partner for businesses looking for the best industrial properties, from warehouses to manufacturing facilities.
For more information about the best listings, call us today at 973-379-6644 or send us a message. Let us help you secure the ideal space to grow your business.
FAQs About Newark NJ Industrial Property for Sale
Is Newark a good place to invest in real estate?
Yes, Newark’s location near major ports, highways, and airports makes it a top choice for industrial real estate investments.
Are industrial properties a good investment?
Yes, industrial properties offer steady income and high demand from the logistics, e-commerce, and manufacturing sectors.
Is industrial property the same as commercial property?
Industrial property is a type of commercial property specifically for manufacturing, storage, and logistics.
Who owns industrial buildings?
Industrial buildings are owned by private investors, REITs, or corporations.
