March 4, 2016
New York City companies seeking out warehouse or industrial space are looking toward north and central New Jersey as options. Such companies are getting priced out of properties within the five boroughs of NYC.
According to Tom Vetter of NAI Hanson in Hackensack, buildings on the NYC side are being redeveloped for residential or retail, with developers buying industrial properties for different uses.
Additionally, North Jersey’s location permits easy access to Manhattan through tunnels. That, as well as state tax breaks, are attracting more companies, resulting in New Jersey industrial vacancy rates hitting their lowest point in 15 years, according to Cushman & Wakefield.
The real estate firm said 4Q2015 vacancy rates statewide were 6.4%, with vacancy at 7.5% in Bergen County and 5.7% in Passaic.