For example, in Union County’s Elizabeth, where demand for multifamily product has become particularly voracious and investor activity is frenzied, cap rates are consequently sliding. They were in the 6.5-to-7.5% range in recently completed transactions of $1- to-$10 million.

In Passaic County’s Paterson, where demand is considerably softer, cap rates have stayed 100 to 150 basis points higher.

The highest apartment vacancy rate – over 6% - is being registered in the East Essex County corridor, which M & M ranked as the state’s weakest submarket.

Middlesex County in central Jersey, which sported a 1.1% vacancy rate, was labeled the top-performing submarket. It was closely followed by Morris County in North Jersey, which ended the third quarter at 1.7%.

Two of new projects are in Hudson County: 900 units to be housed in two towers in Fort Lee (work has begun on the first tower, The Modern, by SJP Properties) and in Jersey City, another phase of construction at the Liberty Harbor North redevelopment area.

The Essex County market received a boost aimed at furthering development along the Passaic River in Newark, when it received a grant from the Port Authority to work on the 12-acre Riverbank Park extension, M & M noted. This funding will provide additional green space, a public access area, and upgraded amenities for area residents. The project should enhance the “ongoing desirability of the area for renters,” and also raise property values, the report said.