Northern New Jersey Industrial Market Report

Sector reset from health crisis continues. The trend of net space relinquishment that began in 2023 will extend through this year, albeit to a lesser degree. Move-outs have been most common among light manufacturing, light distribution and larger warehouse space amid post-pandemic supply chain normalization. While the resulting lift to vacancy will place the marketwide rate at a nine-year high, it will still be lower than nearly all of the 2001-2015 span. Vacancy is comparatively tighter for either small or large floor plans under 50,000 or above 500,000 square feet. This reflects local demand for both last-mile infill and major distribution hubs, with roughly 70 percent of the national population within a 24-hour drive.