Colliers New Jersey released its latest Q2 industrial snapshot showing the market in the state continued to experience heightened demand and positive absorption figures, despite the constrained supply the market has been grappling with during the first half of 2019.
Other data from the report show that northern New Jersey posted its highest net absorption total since the first quarter of 2017, driven by the continued demand for same-day delivery.
As was the case in Q1, the lack of available space pushed occupiers to pre-lease development projects – further substantiating the amount of robust demand in the market.
Such an example is Amazon.com Inc. committing to a 625,000-square-foot development site in Somerset, while Performance Team pre-leased 444,940 square feet at 3 Brick Yard Road in Cranbury. These transactions contributed to the 10.6 million square feet leased in Q2—which represents the fourth consecutive quarter that activity surpasses the nine million square feet mark.
Once again, the average asking rent posted a sharp increase year over year – up 13.1 percent to $8.62 per square foot, with market indicators pointing to sustained increases throughout the year.