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News release


Jones Lang LaSalle Represents Seller in Sale of 5 Giralda Farms

New owners select JLL as co-leasing agent for property

EAST RUTHERFORD, NJ, January 17, 2013 — After three straight quarters of slow but steady growth, New Jersey’s industrial market outperformed even the most optimistic expectations in the final quarter of the year. The market recorded the highest positive net absorption for investor-owned industrial space in the state in the past decade, reducing the overall industrial vacancy rate to 7.8 percent at year-end 2013. The total market vacancy rate was the lowest observed since the onset of the recession in late 2008.

The considerable post-recession rebound in market fundamentals paired with the favorable lending environment to also form a perfect storm for record-setting industrial sales volume in New Jersey during 2013. The fourth quarter followed the precedent set in the first three quarters, as signified by The Hampshire Cos.’ acquisition of the niche 28-property “Prologis Fairfalls” portfolio from Prologis Inc. for $86.15 million. Another representative transaction was JPMorgan Asset Management’s purchase of an eight-building portfolio in the white-hot Meadowlands submarket from Wilson Associates for $47.5 million. Given the rumors of more sizable transactions in the deal pipeline, the capital markets are expected to continue to sustain short-term momentum in 2014 despite possible upward pressures on borrowing rates.

“The boost in deal volume was largely attributable to the improved local economy coupled with New Jersey’s superior location and unmatched transportation and highway infrastructure,” said David Knee, senior managing director at Jones Lang LaSalle. “The Turnpike Corridor continued to be the destination of choice for many industrial users, recording substantial gains in net absorption in the fourth quarter. A number of tertiary industrial submarkets located to the west of the Turnpike Corridor also exhibited promising leasing activity, a trend that had been slow to develop in the quarters that followed the recession.”

New Jersey’s investor-owned industrial market posted total net absorption of 3.7 million square feet in the fourth quarter of 2013, compared with 1.7 million square feet in the third quarter and 0.4 million square feet in the fourth quarter of 2012. The Northern New Jersey submarket saw 1.8 million square feet of net absorption while Central New Jersey recorded 1.9 million square feet of net absorption in the final quarter of the year.

Tenants’ high demand for space located in close proximity to New York, the Port of New York and New Jersey and/or Newark Airport resulted in considerable construction activity in Port and Port-related submarkets in 2013. More than one-half of the 6.2 million square feet of the development activity underway in the fourth quarter was situated in the Port area, with more projects located throughout the Turnpike Corridor expected to go vertical in 2014.

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

  • The overall industrial vacancy rate for Northern and Central New Jersey decreased 5.1 percent (or 40 basis points) to 7.8 percent this quarter from 8.2 percent in the third quarter of 2013. In the past year, industrial vacancy rates fell 8.8 percent (or 80 basis points) from 8.6 percent at year-end 2012.
  • The average investor-owned asking rental rate for Northern and Central New Jersey industrial space rose 2.0 percent to $5.35 per square foot this quarter from $5.24 per square foot in the third quarter of 2013. In the past year, average asking rents increased 5.3 percent from $5.08 per square foot at year-end 2012.

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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 East Rutherford, 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