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New Jersey's Industrial Market Feels Pain

SADDLE BROOK, NJ-A third-quarter report from CB Richard Ellis finds that the state's industrial market is not immune from economic instability.

By Maria Wood | Updated on October 20, 2009

SADDLE BROOK, NJ-Despite its location among one of the nation’s largest consumer bases and with an international port within its midst, the industrial market in Northern and Central New Jersey has not escaped the recession unscathed. The troublesome economy, a jump in unemployment and a decline in manufacturing have all contributed to a 32% increase in vacancy over the past 12 months. As of Q3, industrial availabilities stood at 11.7%, its highest level since 1992, according to CB Richard Ellis.

“We are bumping along the bottom and we will continue to do that for a couple of quarters, maybe four,” Bill Waxman, senior vice president at the CBRE office here, tells GlobeSt.com.

The 802.4-million-square-foot industrial market in Northern and Central racked up nearly 6.5 million square feet of negative absorption in the third quarter. Significantly, two large blocks of space came on to the market in Q3: 489,632 square feet at 228 North Ave. in Elizabeth and 413,000 square feet at 130 Interstate Blvd. in South Brunswick.Leasing velocity is “way down,” according to Waxman, with a marked lack of tenant growth and absorption. Leasing volume totaled a little over 3.2 million square feet, 34% lower than Q3 2008.

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