Avison Young released its latest quarterly office and industrial market report on Thursday which finds the state’s industrial vacancy rate rose to 3.6 percent in the first quarter of 2019, from 3.4 percent in Q1 2018, marking the first quarterly increase in two years. Meanwhile, industrial rental rates rose to $8.51 per square foot.
Key industrial deals throughout the quarter included Capacity LLC signing a 300,000-square-foot lease in North Brunswick; W8 Shipping subleasing 240,154 square feet and 1.5 acres of outdoor storage in Linden; Rubenstein Properties selling 28 properties over six states to the Silverman Group; and Colony Industrial acquiring 100 Performance Drive in Mahwah from Sitex Group.
In the office sector, net absorption for the office market was positive for the fourth straight quarter while leasing activity rose to 2.3 million square feet from 2.1 million square feet in the first quarter of 2018.
Life science companies continue to play a large role in the New Jersey office market with one of the largest deals this past quarter being the Celuarity lease of the entire 170 Park Ave. building in Florham Park, encompassing three floors and 147,215 square feet of space.
Prominent office deals over the last quarter include Ricoh USA signing a 55,893-square-foot lease in Parsippany; the LeFrak Organization selling 570 Washington Boulevard in Jersey City to iStar and iStar’s affiliate, Safehold; and Toys R Us selling their former corporate headquarters building in Wayne.