HASBROUCK HEIGHTS, NJ—In its first quarter 2013 New Jersey industrial report, Jones Lang LaSalle points to Central New Jersey as the go-to region for class-A space as space in Northern New Jersey grows scarce.
The phenomenon can be demonstrated, says the company in a release, by two large lease transactions by Amazon.com in Central New Jersey.
“Indicators point toward further stabilization in both the Northern and Central New Jersey industrial markets,” said David Knee, managing director at Jones Lang LaSalle. “We have recently witnessed a resurgence in construction activity along the New Jersey Turnpike, particularly in the Port and Exit 8A submarkets, along with continued demand from institutional investors. After a year of rapid economic recovery, we remain optimistic that the New Jersey industrial market will continue to perform well in 2013, albeit at a comparatively slower pace.”
According to the report, New Jersey posted total net absorption of -588,565 sq. ft. in the first quarter of 2013, with the Northern New Jersey submarket recording -493,476 sq. ft. of net absorption and Central New Jersey recording -95,089 sq. ft. of net absorption.
In the Port submarket, more than 3 million sq. ft. of industrial projects were underway in the first quarter of 2013, which represents the largest volume of new construction of any submarket in the state.