75% of Industrial inventory under construction in New Jersey is set to deliver empty

There is currently 15.3 million square feet of industrial space under construction in New Jersey. 11.5 msf of which is set to deliver empty if the market continues its’ current course.

Should those 11.5 msf deliver empty it is expected that the overall availability rate in New Jersey will increase to 11.6%. Currently, nearing the end of the second quarter, the overall availability rate sits at 10.1%.

In the 3 previous data bites, we uncovered how leasing activity has stumbled through the year-to-date, how a larger percentage of leases signed are for spaces less than 50,000 sf, and how sublease space has increased dramatically year-to-date.

With 11.5 msf currently slated to deliver empty, occupiers looking for smaller yet higher quality spaces and the dramatic 34% increase in sublease space it is likely that through the end of 2024 the market will experience a decline in average asking rent and an increased overall availability rate.

June 6, 2024

US-NJ-NJ New Jersey