New Jersey industrial average asking rents have dropped by 6.7% YTD

NJ industrial average NNN asking rent by property class

 

• The average industrial NNN asking rent has dropped 6.7% YTD from $16.15 to $15.14. This was expected as new deliveries have outpaced demand. However, with construction starts slowing this drop in asking rents should plateau in 2025 as an economic recovery is likely.

 

• Class A NNN average asking rents dropped 4.4% from $18.20 at the end of 2023 to $17.40 where it currently sits at the end of 2024. 

 

• As noted in this quarters’ previous data-bite (on construction, vacancy, and sublet availability), this decrease in asking rent has been expected. The rate at which asking rents are decreasing will slow down as will the rate vacancy increases. Thus, 2025 will be the first year the industrial CRE market should see a return to normalcy, a return to a healthy market and pre-covid activity numbers.

 

December 17, 2024

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