Midyear BRC Review 2024

• More than 9.4 million square feet of space was leased as of the second quarter of 2024 in the Northern/Central NJ industrial market. In comparison, leasing activity totaled 4.7 million square feet a year ago, reflecting the continued resiliency of the market in spite of economic headwinds.
• Industrial market rents in Northern New Jersey range from $12.00 to $20.00 per square foot as of the second quarter of 2024, with those submarkets closer to the ports holding firm to higher rents. Due to demand softening and an increase in sublease space, rents have decreased in several submarkets. Even so, landlords have yet to discount rents significantly.
• Northern New Jersey industrial vacancy rate rose to 5% as of the second quarter of 2024, increasing from 3% a year ago. Decreased demand combined with the delivery of more than 7 million square feet of new construction resulted in this increase.
• Net absorption totaled negative 2.1 million square feet as of the second quarter of 2024, marking four straight quarters of negative absorption for the market. With more than 13.2 million square feet currently under construction, the market may continue to experience negative net absorption through the balance of 2024.

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https://bussel.com/em/pdf/brc-midyear-review-2024.pdf