April 10, 2017
New Jersey developers sped up their construction schedules to fill the lack of available industrial space. Six new projects broke ground in the first quarter, totaling 2.5 million square feet, bringing the total construction pipeline to 12.9 million square feet at 37 properties.
“Market fundamentals remained positive, benefiting owners and developers,” said Colliers International’s David A. Simon.
In Northern New Jersey, asking rents grew to $6.74-per-square-foot on average, and the percentage of available space dropped to 7.4% in the first quarter, down 60 basis points from the quarter before. Tenants are rushing to renew and lock in their rents — renewals accounted for 35% of all activity. In total, tenants signed leases for 11.4 million square feet, 13.2% higher than the five-year quarterly average.
Pictured: Bridge Development’s High Street property in Perth Amboy, NJ, leased by Target.
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