CBRE: N.J. Industrial Market Appears Robust
- Apr 14, 2011
April 14, 2011
By Allison Landa, News Editor
There’s fertile field in the Garden State, at least when it comes to the industrial market. According to CB Richard Ellis Group Inc., the industry has turned the corner toward recovery, with a progressively more optimistic outlook.
In its New Jersey Industrial MarketView Report, CBRE found that New Jersey has not seen such a high volume of new leasing activity in four years. The 6.37 million square feet of leasing activity in the first quarter translates to a 14.1 percent increase from year-end 2010. Central New Jersey accounted for nearly 65 percent of the square footage leased, with such notable transactions as the 1.1 million-square-foot deal in Carteret and i/o Data Centers’ 831,000-square-foot lease in Edison.
CBRE also found that there was 2.62 million-square-feet of sales activity in the first quarter – a whopping 98.2 percent over the same quarter in 2010 and a 48.9 percent bump over the same quarter two years ago. Major deals included the sale of the 1.4 million-square-foot 67 Whippany Rd. in Whippany and the 330,000-square-foot 101 Railroad Ave. in Ridgefield.
According to CBRE executive vice president William Waxman, the firm’s research reflects strong signs that 2011 is the sector’s year of revival. He added that sales and leasing figures, when paired with net absorption figures, point to a state of equilibrium and turnaround.
Available space is also being shed, the report asserts, with the first quarter’s 11.6 percent availability rate down 38 basis points from the previous quarter’s 12 percent. That is the largest quarter-over-quarter improvement in availability since 2007.