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Market Report

Northern New Jersey Industrial

Second Half 2019

As Key Link to Global Supply Chains, Area’s Sales Prices And Rents Keep Rising Amid Investor, Tenant Demand

Global trade and local consumerism keep industrial vacancy tight, lift rents. A series of powerful demand drivers have led to a nearly uninterrupted decline in the market’s vacancy rate for the better part of a decade, supporting exceptional growth in asking rents. The country’s third largest port by cargo volume creates ample need for warehouse and distribution space as products are relayed across the Northeast, with more than 19 percent of the U.S. population living within 250 miles of Newark. The growing prominence of e-commerce has also emphasized the importance of last-mile delivery centers. The proximity to Manhattan and rental rates less than half the New York City average make Hudson County and the Northern New Jersey region at large a natural location for these facilities. Interest in industrial floor plans is supporting ongoing construction activity, with deliveries for 2019 concentrated in Essex and Passaic counties. Major completions include an unleased 661,740-square-foot distribution center arriving in Newark later this year as well as a recently opened building in Wayne where Gucci occupies all 437,500 square feet.

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