Market fundamentals continued to trend positively for industrial real estate due to the continued demand for ecommerce and strong port activity. The vacancy rate decreased to 3.38% and the average asking base rent increased to $8.04 PSF NNN, which is up 11% year over year and up 44% compared to rental rates 5 years ago. Year to date, Northern and Central NJ had close to 12MSF of positive net absorption with Middlesex county outpacing the rest of the state with over 6MSF YTD.
Market fundamentals continued to trend positively, exceeding expectations. The vacancy rate dropped to 3.5% from last quarter’s 3.9% and the average asking base rent increased by 6% to $7.90 PSF NNN and by 11% year over year. Interchange 8A of the NJ Turnpike has consistently out performed the rest of the state with its over 1MSF absorption each quarter for the last several years due to the rapid growth of e-commerce and demand for big box distribution centers. Currently there are only two facilities available over half a million square feet and one is 18’ clear located in Wayne and the other is located at 8A.
Market fundamentals continue to improve due to overwhelming demand for space, demographics, strong leasing velocity and historic vacancy rate lows. Total positive absorption for the first quarter was 3MSF (over 1MSF additional space absorbed year after year). Vacancy continued its downward trend to 3.9% and rental rates increased $0.15 or 2% in the first quarter (9% year over year, a 37% increased in less than five years).
Economy Despite global economic, political and financial uncertainty, unemployment has remained buoyed hovering around the 5% mark. Trade, Transportation, Utilities and Construction employment grew, contributing to healthy consumer spending and …