Northern New Jersey Industrial Investment Forecast
Surge of Shipping Through New Jersey Ports Bolsters Space Demand;
Developers Set Record Pace
E-commerce and logistics trends push warehouse performance to new heights. Supply chain woes have increased multi-channel retailers' storage requirements in Northern New Jersey. Bottlenecks in other coastal metros have diverted record tonnage into New York and New Jersey ports affirming Port Newark's status as the top point of entry for goods shipped through the East Coast. Nationwide logistical challenges are also influencing development trends. Booming construction is concentrated around the Meadowlands and waterfront locales streamlining a flow of goods to surrounding consumers. Additional conversion activity should help bolster metro stock. Corporate offices in Rockaway recently vacated by Party City will add over 120000 square feet of warehouse space to the market after remodeling. While this year's record supply pipeline will bring vacancy back above last year's all-time low elevated demand for industrial space should push asking rents to new highs as online retailers strive to shorten distances between staging areas and customers.