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Industrial Market Hard to Pinpoint

EAST RUTHERFORD, NJ-The numbers aren't terrible, but there has been a fall-off. Some key deals illustrate the larger trends.

By Eric Peterson | Updated on January 21, 2009

EAST RUTHERFORD, NJ-The views are mixed but generally on the down side in the nation’s third-largest industrial market, and some of the current activity mirrors larger trends that reach beyond the purely industrial. For openers, the market’s numbers aren’t terrible, but they also aren’t particularly great.

“In terms of velocity, the year started out strongly, weakened in the middle and rebounded at the end,” says Gil Medina, executive managing director for Cushman & Wakefield here. His firm’s 2008 numbers show North and Central New Jersey leasing activity of more than 17 million square feet for the year, a solid number, but down from 2007′s 23 million square feet.

“In general, warehouse/distribution leasing seems to be waning as new construction hasn’t attracted the same amount of interest as in the past,” he says. Medina expects vacancy rates to continue to rise from their current 7.2%, which itself is an increase from 6.9% a year ago.

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