- The NJ industrial market fundamentals remained strong as demand continues to outpace construction deliveries. The amount of SF Under Construction has exceeded 10MSF, rental rates are at an all time high, vacancy rates are at historic lows @ 4.5% and there does not seem to be an end in sight.
- Average rental rates are currently at $7.13 PSF which have risen over 40% in the last five years, 19% over the last three years, 13% over the last year and +/-7% over the last quarter which has many tenants coming into the market with sticker shock particularly in the Meadowlands where Hartz Mountain reportedly has raised its asking rent to $12 PSF.
- Amazon inked yet another deal in NJ at Exit 8A taking down +/-1MSF at the Brick Yard Road facility and The Hampshire Company sold one of its portfolios for over $146M @ $120 PSF.
- With all the discussions pertaining to ecommerce absorbing industrial space and taking away from the retail market, the vacancy rate still remain 6.1% however some companies margins are thinning due to the high rents.
- Medical is trending to many of the retail locations.
- The NJ office market has seen some grim times in the past ten years however we are starting to see some positive momentum with the net absorption rising and the average rental rates have increased.
- Transit-oriented areas are certain clusters in NJ such as the Short Hills and Waterfront office markets continue to see growth.
- Tenants looking for upgraded amenities & beneficial working environments.
- Consumer confidence remains healthy and at an all-time high.
- E-commerce sales accounted for over $111.5B sales according to the US Department of Commerce, up 4.8%. Total retail sales were estimated at $1,256.2B an increase of 0.5% from the 1Q17.
- New Jersey’s unemployment rate is 4.1%, the lowest since June 2001.
- GDP grew by 2.6% in the second quarter fueled by consumer spending and soaring investment growth.