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News release

Hasbrouck Heights, NJ

New Jersey Industrial Market Starting to Stabilize Despite Q3 Decreased Leasing Activity

Jones Lang LaSalle’s Q3 industrial report says that average asking rents and vacancy rates remain flat from Q2


HASBROUCK HEIGHTS, N.J., Oct. 28, 2010 — Jones Lang LaSalle’s third quarter industrial market report found that, despite a 20 percent reduction in the number of industrial leasing transactions in the third quarter of 2010 compared with the same period in 2009, New Jersey’s industrial market is showing signs of stabilization.  The market has experienced relatively little change in average asking rents and vacancy rates from the previous quarter.

The research also reports a significant increase in port activity, with overall container volumes increasing by 21 percent from August 2009 to August 2010.  Early indicators may point to the market finally hitting bottom.

“We’re seeing a continued trend of large users leaving the Northern New Jersey market for less expensive and more modern facilities located in the central region of the state,” said Rob Kossar, Managing Director at Jones Lang LaSalle. “The sweet spot for Northern New Jersey is for lease transactions in the 10,000 to 40,000-square-foot range, which are in high demand by the food and beverage industries to service the greater metropolitan area.  With port activity increasing, this will keep demand steady for Northern New Jersey.”

“Central New Jersey remains very attractive for mid-to-large size tenants, including third-party logistics and apparel-related companies, especially in facilities located off of Turnpike exits 8A and 7A, because of the pricing differential with Northern New Jersey and the large stock of Class A modern industrial space,” Kossar added.

Highlights of Jones Jang LaSalle’s third quarter industrial market report include:
  • The overall vacancy rate for New Jersey was 13.4 percent at the end of Q3 2010, largely unchanged from the 13 percent vacancy rate at the end of Q2 2010. The vacancy rate at the end of Q3 2009 was 12.4 percent.
  • Average asking rents in New Jersey were $5.11 at the end of Q3 2010, compared to $5.08 at the end of Q2 2010. Average asking rents in Northern New Jersey were $5.78 at the end of Q3 2010, and $4.32 in Central New Jersey, relatively unchanged from Q2 2010.
  • There were 175 industrial lease deals executed, including new leases and lease renewals, in New Jersey during Q3 2010. This is a 20 percent decrease from the 219 lease deals that occurred in Q3 2009. Industrial transactions in Q3 2010 totaled 5.1 million square feet, compared with 6.3 million square feet of transactions in Q3 2009.
Jones Lang LaSalle’s team of in-house research professionals compiled the Jones Lang LaSalle Third Quarter 2010 NJ Industrial Report, which provides an extensive analysis of the New Jersey industrial market.

Jones Lang LaSalle’s Industrial Services Group is the leader in industrial services in New Jersey based on total leasing transaction volume. Jones Lang LaSalle is also a leading commercial real estate services provider in New Jersey, ranking within the top 3 in office brokerage, project management and investment sales in the State.  The firm boasts more than 300 real estate professionals and support personnel, which provide industrial brokerage, supply chain logistics advisory, office landlord and tenant representation, strategic consulting, project and property management and investment sales services to many of New Jersey’s leading corporate tenants, investors and landlords.
 
About Jones Lang LaSalle

Jones Lang LaSalle (NYSE:JLL) is a financial and professional services firm specializing in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2009 global revenue of $2.5 billion, Jones Lang LaSalle serves clients in 60 countries from 750 locations worldwide, including 180 corporate offices.  The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 1.6 billion square feet worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with approximately $40 billion of assets under management. For further information, please visit our website, www.joneslanglasalle.com.