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The basics:

• Middlesex County leads New Jersey in industrial leasing
• Exit 8A remains a premier logistics, distribution hub
• Central 9 Logistics Park continues major expansion
• Strategic location fuels warehouse, supply chain growth

Rob Kossar’s favorite submarket? Exit 8A.

“I like [it] because it’s a regional distribution market, and I don’t think it ever goes out of favor,” the JLL vice chairman and head of Northeast Industrial told NJBIZ, citing its access to ports, highways and consumers. “It’s on par with the Inland Empire in California. It’s equidistant between New York and Philly. It’s equidistant between Boston and D.C. — right smack in the middle,” he said.

And that proximity is important. “They’re close enough to the port and close enough, broadly, to the population to do really well,” he said, later adding, “So, if your outbound transportation is more important, generally speaking that tenant ends up at 8A.”

The regional distribution space is undergoing rapid expansion as companies seek lower costs and shipping times. Evolving e-commerce, supply chain resiliency and onshoring efforts are driving the push. And Middlesex County is feeding demand.

Exit 8A off the New Jersey Turnpike sits within the county and highlights the strengths of the larger region. Supported by strong fundamentals, Middlesex has emerged as one of New Jersey’s dominant industrial markets.

Recent figures reinforce that bullish stance. The centrally located market boasts the largest footprint of total rentable building area across North and Central Jersey, according to NAI James E. Hanson’s Q1 industrial report (224.73 million square feet). The figure dwarfs every other submarket, including the next closest contender, Bergen County, which had a comparative 91.42 million square feet total RBA.

In Middlesex, more than 16.65 million square feet remain empty and available, pushing the total vacancy rate slightly above the regional total of 7.0% to 7.4%.

Looking good

Over the quarter, Middlesex County also led in year-to-date total net absorption, with 932,714 square feet. Meanwhile, the next-closest region in scope, Hudson County, recorded just about more than half of that (471,590 square feet). Overall, most included counties posted negative figures.

Middlesex County also led in terms of leasing, with 3.87 million square feet recorded year to date. A little bit more than that (3.18 million square feet) is currently under construction, according to the report. Bergen again came closest, yet still far off, with a total of 1.66 million square feet leased year to date and 1.6 million square feet under construction.

Middlesex was tops across all statistical categories included in NAI Hanson’s Q1 report — except for asking rents.

While the county’s average $16.23 per square foot rate for Class A space comes in higher than the overall regional price point ($16.08 per square foot), it falls behind the biggest earners: Hudson – $19.57 per square foot; Bergen – $19.37 per square foot; and Union – $18.62 per square foot.

Among the top lease transactions highlighted from Q1, three of the four sit within Middlesex County, underscoring the area’s appeal for users as well as investors:

• Tenant: FedEx | 25-35 Talmadge Road, Edison – 695,073 square feet
• Tenant: DSV | 201 Middlesex Center Blvd., Monroe – 600,000 square feet
• Tenant: S&D Transfer | 200 Docks Corner Road, Dayton – 309,925 square feet

The same was true in terms of top transactions, with three of the four callouts situated in the county:

450,330 square feet | $138.5 million
1065 Cranbury South River Road, South Brunswick
Buyer: Property Reserve Inc. Seller: Morgan Stanley

31,226 square feet | $26.25 million
110 Sylvania Place S., Plainfield
Buyer: Link Logistics Real Estate Seller: Bettaway

54,113 square feet | $21.1 million
51 New Brunswick Ave., Hopelawn
Buyer: Sagard Real Estate Seller: Woodmont Properties

Beyond Exit 8A, Middlesex County also hosts the Exit 10/12 and Brunswick/Exit 9 submarkets.

In the former, average asking rents for Class A space reach $20.54 per square foot, while the latter posts a $14.12 per square foot rate.

Exit 10/12 posted a 6.9% vacancy rate in Q1 and 656,198 square feet in total year-to-date net absorption. More than 1 million square feet have been leased this year, while over 2.7 million square feet are under construction, the report said.

In Brunswick/Exit 9, the total vacancy rate came in at 8.7%. Year-to-date total net absorption was 118,470 square feet. Rentable building area under development totaled 359,031 square feet, according to the report.

Case in point

An award-winning project in Old Bridge underscores the county’s overall momentum. Kossar pointed to 2020 Acquisition‘s work in Old Bridge. “There’s a developer … who had a vision for this area … to build out 5 million square feet. And we thought he was crazy; and he was spot. on.”

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In 2024, the Edison-based developer took home the NAIOP New Jersey Industrial Deal of the Year honors for Central 9 Logistics Park. According to the program, the 800-acre Old Bridge hub created more than 2,000 jobs.

“The project is probably my career magnum opus,” 2020 Acquisitions President Efrem Gerszberg said accepting the award. “It’s one of the largest industrial public-private partnerships in New Jersey. It grew with pure collaboration and vision through Old Bridge Township and myself.”

The state-of-the-art Central 9 Logistics Park benefits from a 30-year Payment in Lieu of Taxes (or PILOT) program.

Phase 1 and 2 are available now. The first covers four buildings (two leased) and more than 1.9 million square feet along Fairway Lane and Jake Brown Road. The second, two buildings along the same roadways total over 1.1 million square feet.

2020 Acquisitions anticipates delivery of Phase 3 – three buildings and more than 1.2 million square feet – in the fourth quarter of this year and Q1 2027, according to the property’s website.

One of the largest municipalities in Middlesex County, Old Bridge covers nearly 39 square miles with access to major roadways. Routes 9, 18, 34, 35 and 516 directly traverse the township. It also offers proximity to Garden State Parkway (Sayreville, Matawan, Cheesequake) and New Jersey Turnpike (East Brunswick, Woodbridge).

Last fall, Central 9 Logistics Park secured three leases, arranged by Cushman & Wakefield in a 45-day span.

“In a state where vacant land is a commodity, the scale of this project can offer current and future tenants the ability to grow their business and establish a logistics footprint that can grow with them,” CushWake Vice Chair Mindy Lissner noted at the time.

Added Gerszberg, “The feedback from our tenants has been that Central 9 is unique in that it sits on a major highway near the Port of Elizabeth, has little labor competition with an untapped local labor force, and a long-term PILOT. Our long-term, below-market real estate taxes have been a huge advantage, as tenants are expressing their concern of increased property taxes across Central New Jersey.”

In its 2026 Industrial Construction Report, Commercial Cafe ID-ed two projects in the Garden State among the largest of the preceding year. 2020 Acquisition’s work on Buildings 3 and 5 at Central 9 Logistics Park (1.59 million square feet) ranked 14.

Beyond Old Bridge

In Exit 10/12, Sagard recently acquired a property at 51 New Brunswick Ave.

Woodmont Industrial Partners developed the project. Delivered in 2023, R.A.S. Logistics leases the space on a long-term basis.

Commenting on the Hopelawn sale at the time, Woodmont Executive Vice President Anthony Amadeo described working with the township of Woodbridge throughout the redevelopment process as “a pleasure.” (Hopelawn is an unincorporated community and census-designated place in Woodbridge Township.)

“Our focus is to deliver high-quality logistics facilities in markets where demand for modern industrial space remains strong,” he said.

Amadeo highlighted direct access to port transportation and major transportation corridors as local drivers. “And this submarket offers exceptional connectivity that supports distribution throughout the Northeast,” he added.

Sagard Director of Acquisitions Belah Terentjev explained why the asset will continue to attract both users and capital.

“Woodmont’s high-caliber execution, coupled with the property’ strategic location and strong tenant profile make it a compelling long-term investment,” he said at the time.

To start the year, Woodmont Industrial Partners – a joint venture between Fairfield-based Woodmont Properties and full-service third-party logistics provider Romark Logistics – and Joseph Jingoli & Son Inc. celebrated the delivery of 111 Main St. in South Amboy with the execution of a five-year lease for 96,000 square feet with Chinese third-party logistics firm Wingtat Cargo.

Middlesex County earns distinction outside of New Jersey, as well.

Hypothetically, “If I had to pick two markets where I own buildings, I would pick the Meadowland and 8A. And, if I had to pick first—I would pick 8A,” Kossar said. In fact, looking nationwide, he added, “The Inland Empire would be No. 1 and Exit 8A would be No. 2.”