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Report: Region's Industrial Market Remains Solid--and Pricey

TEANECK, NJ-Demand for space is slowly eating away at the supply of space, and both investors and users are "fighting over anything which might be for sale," according to Colliers Houston.

By Eric Peterson | Updated on July 15, 2003

TEANECK, NJ-According to a new report by Colliers Houston & Co., based here, demand for industrial space is slowly eating away at the supply of space and both investors and users are “fighting over anything which might be for sale,” according to company president David T. Houston, Jr.

“Sale prices and lease rents remain disconnected in North Jersey, as low interest rates and a lack of product for sale have driven sale prices to record heights that can’t be justified by capitalizing net operating income,” Houston continues. “Recent sale prices in North Jersey approaching and, in some cases even exceeding $100 per sf are just an indication of the imbalance between supply and demand.”

Because of that, “product shortages may begin to occur during the second half of the year,” Houston suggests. “Even in late spring, users were finding it difficult to find available space in units of more than 100,000 sf in Morris County near Parsippany.”

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