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News release


Jones Lang LaSalle Reports Strong Sales on Eve of Incentives Bill Introduction

New Jersey leasing activity slowly accelerated while properties traded at near record-breaking levels in the third quarter of 2013

HASBROUCK HEIGHTS, NJ, October 16, 2013 — A favorable lending environment, coupled with increased stability and improving market fundamentals, has made the New Jersey industrial market incredibly attractive for investors and users alike. However, unlike in recent quarters, activity in the third quarter of 2013 pushed west away from the principal submarkets located along the New Jersey Turnpike Corridor.

This quarter, Industrial Income Trust acquired a seven-building suburban portfolio from SK Realty & Development, while F. Greek Development purchased the seven-building, Parsippany-based Fox Hill portfolio from Tices Fox Hill Associates. One transaction particularly telling of the current state of the capital markets relative to the post-recession years was the Bentall Kennedy, representing Calpers, purchase of 258 Prospect Plains Road in Cranbury for $98 million. The seller, Exeter Property Group, had paid $80.5 million for the property — considered one of the most desirable industrial assets in the state — just two years ago.

“Although the leasing market hasn’t been as active as it was this past year, it’s in line with what we had expected at the onset of 2013,” said David Knee, managing director at Jones Lang LaSalle. “On the other hand, I’m particularly encouraged by the passage of the Economic Opportunity Act as well as the fluid capital markets activity. With the passage of the new incentives programming, we may see continued development activity above and beyond the construction underway today.”

The Economic Opportunity Act of 2013 is much more streamlined and flexible than its predecessor programs, allowing for companies both large and small to qualify. A bevy of bonuses are written into the updated Grow New Jersey Assistance Program based on the number of new or retained full-time employees, location, industry and capital spend of a project. With more than a dozen applications already reportedly in the queue, 2014 may be a busy year for industrial build-to-suit and renovation activity.
New Jersey’s investor-owned industrial market posted total net absorption of 805,950 square feet in the third quarter, compared with 13,682 square feet at midyear and 955,805 square feet in the third quarter of 2012. The Northern New Jersey submarket witnessed 726,311 square feet of positive net absorption while Central New Jersey recorded 79,639 square feet of net absorption in the third quarter of 2013.

New Jersey industrial development activity remained strong with approximately 5.84 million square feet under construction, approximately 2.69 million square feet more than what was observed in the third quarter of 2012. Nearly two-thirds of the industrial product being constructed throughout the state is focused within the Port and the port-related Exit 12 submarkets.

Other highlights from JLL’s third-quarter 2013 industrial market report include:

  • The overall industrial vacancy rate for Northern and Central New Jersey decreased 2.5 percent (or 20 basis points) to 8.5 percent this quarter from 8.7 percent in the second quarter of 2013. During the past year, industrial vacancy rates have fallen 2.9 percent (or 20 basis points) from 8.7 percent.
  • The average investor-owned asking rental rate for Northern and Central New Jersey industrial space fell less than 1.0 percent to $5.28 per square foot this quarter from $5.31 per square foot in the second quarter of 2013. During the past year, average asking rents have increased 3.3 percent from $5.11 per square foot.

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JLL is a leader in the northern/central New Jersey commercial real estate market, with more than 500 professionals and support staff providing agency leasing, tenant representation, industrial services, strategic consulting, project and development services, property management and investment sales/capital markets services to New Jersey's leading corporate tenants, investors and landlords. The firm, which assists clients from three full-service offices in Parsippany, Iselin (Metropark) and Hasbrouck Heights, also acts as local service provider for JLL global and national corporate clients in need of real estate assistance in New Jersey.

About Jones Lang LaSalle
Jones Lang LaSalle (NYSE:JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual revenue of $3.9 billion, Jones Lang LaSalle operates in 70 countries from more than 1,000 locations worldwide. On behalf of its clients, the firm provides management and real estate outsourcing services to a property portfolio of 2.6 billion square feet and completed $63 billion in sales, acquisitions and finance transactions in 2012. Its investment management business, LaSalle Investment Management, has $46.3 billion of real estate assets under management. For further information, visit