October 11, 2017
The shortage of industrial space is thwarting dealmakers in New Jersey.
Companies are eager to rent industrial space, pushing average asking rents to $7.13 per square foot. That’s up 15% compared to a year ago. But, there isn’t much space available — just 6.3% in the third quarter, according to Colliers.
As a result, companies signed a paltry amount of leases in the third quarter. “Quarterly industrial leasing activity dropped below 10 million square feet, to 9.1 million square feet, for the first time since third-quarter 2015,” said David A. Simon, executive managing director for Colliers International NJ.
Developers are doing their best to keep up with demand. They started construction on 10 projects totaling 2.6 million square feet of new industrial space in the third quarter. A total of 43 properties totaling 15 million square feet of space are now in the works for New Jersey.
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