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News release


New Jersey Industrial Vacancy Rate Reaches Lowest Point Since 3rd-Quarter 2008

Northern, Central New Jersey industrial product records overall vacancy rate of 7.0 percent this quarter; investment activity on pace to record $10B in industrial sales by year-end

EAST RUTHERFORD, N.J., October 21, 2015 — JLL reported that continued strong leasing activity within New Jersey’s industrial real estate market has pushed vacancy rates down to the lowest point since the onset of the Great Recession. Northern and Central New Jersey industrial product recorded an overall vacancy rate of 7.0 percent in the third quarter of 2015, matching the 7.0 percent rate posted in the third quarter of 2008.

New Jersey's industrial market posted total positive net absorption of 1.9 million square feet in the third quarter of 2015. Contributing to this quarter’s robust leasing activity was The Home Depot Inc.’s renewal of more than 800,000 square feet at 66 Station Road in Cranbury, and Office Star Products’ lease of 216,000 square feet at 1 Lladro Drive in Moonachie. Year-to-date the market has reached 4.0 million square feet, not quite meeting the record-breaking pace set in 2014. However, several large deals which have yet to close may help bridge the gap between in leasing activity.

During the past year, several multi-billion dollar transactions were completed, bringing sales volume for the year to $7.6 billion, just below the total sales volume for all of 2014. “Demand for New Jersey industrial product has never been higher, driven by historically low interest rates, an influx of foreign capital and the state’s surging industrial market.” said David Knee, Senior Managing Director at JLL.

As a result of declining vacancies, and rising rental rates, developers throughout New Jersey have ramped up speculative development projects, with the first batch breaking ground this quarter. While speculative development is primarily focused around the Exit 8A and the Meadowlands submarkets, projects within the Exit 10 and Exit 12 submarkets are expected to break ground over the next year. Most notably, Bridge Development Partners is likely to launch several projects in the coming months.  Scannell Properties is developing a 315,000-square-foot build-to-suit facility for FedEx Ground in the Meadowlands.

Other highlights from JLL’s third-quarter 2015 industrial market report include:

  • Year-over-year, the overall vacancy rate declined 80 basis points to 7.0 percent in the third quarter of 2015. 
  • The Northern and Central New Jersey average asking rental rate rose 3.6 percent from third-quarter 2014 to $5.82 per square foot one year later.

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JLL is a leader in the northern/central New Jersey commercial real estate market, with nearly 800 professionals and support staff providing agency leasing and property marketing, tenant representation, industrial services, strategic consulting, occupancy planning, workplace strategies, project and development services, property and facility 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 a local service provider for JLL’s global and national corporate clients in need of real estate assistance in New Jersey. JLL’s New Jersey operations were honored by NJBiz magazine as one of its 2015 Best Places to Work in New Jersey.

About JLL
JLL (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. A Fortune 500 company with annual fee revenue of $4.7 billion and gross revenue of $5.4 billion, JLL has more than 230 corporate offices, operates in 80 countries and has a global workforce of approximately 58,000.  On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 3.4 billion square feet, or 316 million square meters, and completed $118 billion in sales, acquisitions and finance transactions in 2014. Its investment management business, LaSalle Investment Management, has $56.0 billion of real estate assets under management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit​