NEW JERSEY—According to its Industrial Market Snapshot for the second quarter of 2012, Cassidy Turley suggests that the market segment is heading toward recovery partially based on speculative development of industrial facilities in Center and Northern New Jersey.
“This activity serves as a positive leading indicator that the market is strengthening and poised to accelerate with the Port and submarkets along the Turnpike being the most popular areas in Central New Jersey,” noted Raymond Trevisan, managing principal of New Jersey for Cassidy Turley. “Developers are anticipating there will be demand for this additional space and that modern properties with the most efficient building systems will be sought after.”
Among those spec developments in Northern New Jersey:
• A 916,400-sq.-ft. Class A distribution center at 1016 West Edgar Road in Linden;
• An 878,564-sq.-ft. site at 219-295 Route 1 & 9 in Jersey City;
• 705,000 sq. ft. at 429 Delancy Street in Newark; and
• 628,000 sq. ft. on County Road in Jersey City, pre-leased to Goya Foods.
Cassidy Turley also points out projects currently underway or recently completed within the area, including a 180,000-sq.-ft. industrial building in Newark that is fully leased to Wakefern as well as two other properties – one in Secaucus, the other in Elizabeth.
In Central New Jersey, the second quarter saw increased momentum with more than 2.3 million sq. ft. of positive net absorption.
“Vacancies in Central New Jersey are now at pre-recession levels and the Turnpike corridor continues to experience strong and consistent leasing activity,” noted Doug Bansbach, senior vice president for Cassidy Turley. “The waiting game is over and investors are ready to make deals as long as market fundamentals remain strong and demand in the market remains high.”
In the second quarter, the Exit 7A submarket recorded 1.35 million sq. ft. of positive absorption and the vacancy rate has dropped to 17.1 percent from 27.3 percent in the previous quarter. Vacancies are now at a level that has not been reported since the fourth quarter of 2006.