Industrial activity in New Jersey stumbles through the first quarter

• 6.67 msf of leasing activity occurred in the first quarter of 2024, falling far short of the average Q1 leasing square footage since 2012 of 10.96 msf.
• In comparing Q1 2024 to Q1 2023, there was 3 msf less in total lease square footage. However, only 13 fewer deals. So, what does this mean for the NJ industrial market? This signals the shifting attitude of occupiers as they look to minimize overhead. In order to do so, they are downsizing their industrial footprint whilst looking for higher quality, albeit smaller, spaces.
• It is expected that this flight-to-quality and the occupying of smaller spaces will continue through the remainder of 2024.

May 10, 2024

Additional resources

• The New Jersey industrial market continues to see an increase in smaller sized leases
• View our latest New Jersey industrial market report

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