Recent economic statistics send mixed messages, he adds. The economic recovery didn’t translate into job growth, as corporations eye the economic turmoil overseas and wait to initiate hiring. And continuing positive absorption hasn’t translated into higher rents. In fact, the current average asking lease rate for industrial property in the state is $5.18 per square foot, compared with $5.28 per square foot in the second quarter. Northern New Jersey saw just the average asking rate drop by one cent, but the rate in Central New Jersey decreased by 19 cents.

“The Central New Jersey market had a lot more vacancy to shake out,” Tully says. “Now that deals are being done, they will be done at lower price points. We’ve seen the bottoming out of prices.”

Landlords of new construction were particularly aggressive in pricing during a period of low demand, allowing those companies that were moving or expanding the opportunity to upgrade their facilities. “People are moving up in quality. The A- and B+ space will find its price point,” Tully says.

Obsolete properties may never recover, but will be repurposed into other uses. And deals are happening. They’re just taking longer to do as corporations remain reluctant to make commitments in light of geopolitical and economic uncertainty, Tully notes. “There’s a lot of activity right now,” Tully says. “It won’t be reflected in the statistics, but there is good news.”