Large Spec Warehouse Rises in NJ
- Aug 17, 2017
Sitex Group, the developer of a 271,195-square-foot industrial building under way at 1 Sharp Plaza in Mahwah, N.J., has named NAI James E. Hanson as the project’s exclusive leasing agent.
The announcement came the day after NAI Hanson released its Second Quarter 2017 Northern & Central New Jersey Industrial Report. (More on that momentarily).
Sited on nearly 21 acres of land, the warehouse will feature 36-foot clear ceiling heights, 54- x 60-foot column spacing, 36 dock doors, ESFR sprinklers, two drive-ins, and parking for 25 trailers and 184 cars. The property is less than a mile from the intersection of Route 17 and Interstates 87 and 287, with direct access to New York City via the Tappan Zee and George Washington bridges.
Completion is expected by the end of the first quarter 2018.
NAI Hanson’s Kenneth Lundberg and Patrick Lennon are the leasing brokers.
“The limited supply in adjacent industrial markets means that firms will continue to seek out quality buildings in highly accessible locations such as northern Bergen County,” Lennon said in a prepared statement.
A tight market
“The Bergen County industrial market has faced an extremely restricted supply of new Class A warehouse and distribution oriented buildings over the last several years,” Lundberg added. “With the explosion in e-commerce users seeking these types of buildings, companies have sought out markets like Mahwah for available space.”
The northern Bergen County industrial market, according to NAI Hanson, “is well positioned for continued strong growth.”
Average asking rates in this market are up $1.05 per square foot since 12 months ago and ended the second quarter at $8.61 PSF, the second-highest asking rental rate in northern and central New Jersey. The vacancy rate continues to decline and is down 2 percent over the past 12 months, to 5.7 percent.
Overall, the northern and central New Jersey industrial market saw more than 5.6 million square feet leased in just the second quarter, a bump of more than 750,000 square feet from the prior quarter. Region-wide, high demand and limited new supply pushed the overall vacancy rate down to 4.5 percent, according to NAI Hanson.
NAI Hanson reportedly is the largest independently owned CRE firm in New Jersey.