Bussel Realty
732-287-3777
Nearly 24 million square feet of space was leased through the entirety of 2024 in the Northern/Central NJ industrial market. In comparison, leasing activity totaled 22.5 million square feet a year ago, reflecting the market strength in spite of economic headwinds. Industrial market rents in Northern/Central New Jersey range from $9.00 to $17.00 per square foot as of the fourth quarter of 2024, with those submarkets closer to the ports holding fast 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.
Nearly 24 million square feet of space was leased through the entirety of 2024 in the Northern/Central NJ industrial market. In comparison, leasing activity totaled 22.5 million square feet a year ago, reflecting the market’s strength in spite of economic headwinds.
Industrial market rents in Northern/Central New Jersey range from $9.00 to $17.00 per square foot as of the fourth quarter of 2024, with those submarkets closer to the ports holding fast 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/Central New Jersey industrial vacancy rate rose to 6% as of the fourth quarter of 2024, increasing from 4.7% a year ago. Decreased demand combined with the delivery of more than 12 million square feet of new construction resulted in this increase.
Net absorption totaled negative 1.0 million square feet as of the fourth quarter of 2024, marking five straight quarters of negative absorption for the market. With more than 11.4 million square feet currently under construction, the market may continue to experience negative net absorption in 2025.
