NULLThe northern New Jersey industrial market is poised for a quick rebound once the economy begins to recover, while the central New Jersey industrial market will take longer to bounce back, according to Colliers Houston & Co., a Teaneck-based commercial real estate brokerage firm.
ÂAs a historically strong performer, [North Jersey] will respond quickly to any sort of ease in economic distress,Â said Michael G. Markey, a senior vice president at the company.
North Jersey has derived its strength from the density and wealth of the local population, and the fact that the ports of Elizabeth and Newark are projected to drive growth for the region in the long term. However, partly because of the current decline in global trade, vacancy rates in the market rose to 7.4 percent at the end of the second quarter Â the highest in more than a decade, according to the market report.
The vacancy rate in central New JerseyÂs industrial market also increased during the second quarter, climbing from 9.3 percent in the first quarter to 9.8 percent, the report said. With its concentration of large distribution centers, the market is dependent on the health of the retail market, and has been hit hard by declines in consumer spending, according to Colliers Houston.