New Jersey industrial total availability rate hits 10% for the first time in a decade, is this a sign for a forthcoming healthy market?

NJ industrial total available sf and total availability % - compared to build date after Jan. 2004

 

• The total availability rate for the NJ industrial market has hit 10% for the first time since 2014.

 

• Year-over-year, the total available sf has increased by 5 msf. That 5 msf is almost entirely new construction that delivered empty. More new construction is expected to deliver empty, approximately 7.5 msf. However, new construction starts are slowing and the rate at which availability climbs is most likely going to decrease as a result.

 

• As noted in the previous data bites this quarter (on construction, rents, and sublet availability), this increase in availability has been expected. The rate at which availability is increasing will slow down as will the rate asking rents are coming down. 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.

 

September 17, 2024

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