January 22, 2017
Industrial tenants in Northern and Central New Jersey absorbed a net 10.1 million square feet of space. That’s the highest net absorption for these markets since 2001. All those signed leases drove the vacancy to 4.5% in Q4 2016 — down 200 basis points from the year before.
Developers are rushing to build new properties to meet the demand.
“During the final quarter of 2016, however, vacancy rates were buoyed by an escalation in speculative deliveries, and only ticked down slightly. With speculative development on the rise, vacancy rates could once again be propped up despite substantial leasing activity,” said David Knee, senior managing director for JLL.
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