New Jersey industrial total vacancy rate reaches decade high; average NNN asking rent decreases
NJ industrial total vacancy % and average NNN asking rent
- The total vacancy rate for the NJ industrial market is above 7% for the first time since 2014, reaching 7.18% YTD.
- Year-over-year, the total vacant sf has increased by 8.5 msf. That 8.5 msf is almost entirely new construction that delivered empty. More new construction is expected to deliver empty, approximately 7.5 msf.
- As noted in the previous quarters’ data-bites (on construction, rents, and sublet availability), this increase in vacancy has been expected. The rate at which vacancy 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.
November 26, 2024
