Industrial a Mixed-Bag as '07 Closes

The New Jersey industrial market offers a mixed bag as we head into the year’s final months. The market north of Turnpike Exit 10 is as strong as it’s ever been, boasting relatively low vacancies, high demand and healthy rents. Further south, at exits 8A and 7A, the market is peppered with vacant buildings and little urgency from tenants looking to make deals.

During the first half of 2007, industrial leasing activity totaled 11.9 million sf, off 10% from totals recorded last year. Highlighting activity, LG Electronics leased 751,005 feet at 380 Deans Rhode Hall Rd. in Cranbury. Within the Rockefeller Foreign Trade Zone in Cranbury, Swiss-based logistics company Kuehne & Nagel Inc. took 443,803 sf at the recently completed 324 Half Acre Rd.

Despite these big wins for New Jersey, tenants seem to be holding back from making decisions. A number of factors could be contributing to this drag on the market.