EAST RUTHERFORD, NJ-An impressive 2.3 million square feet of vacant industrial property was absorbed during the first three months of 2013, Cushman & Wakefield reports.
More than 5 million square feet of new industrial leases were signed – up from 4.6 million square feet during the same period one year ago.
“Demand has intensified, especially in the northern counties, where the Meadowlands and Port submarkets combined for more than 1 million square feet –nearly half – of the state's total absorption,” said Gualberto “Gil” Medina, C&W's executive managing director.
More than 2.4 million square feet was leased in northern Jersey, which Medina said was the highest quarterly total since the third quarter of 2011. Hudson County was particularly robust, with more than twice the amount of leasing it had last year during the same period: a total of 621,590 square feet.
In central Jersey, nearly 2.7 million square feet was leased, the highest total since mid-year 2012. The most active submarket during the quarter was the submarket known as “Lower I-287,” with 1.3 million square feet of signed deals.
There were 15 deals made for 100,000 square feet or more during the first quarter, which Tri-State research director Jason S. Price tells GlobeSt.com amounts to about half of all the deals. That level of activity effectively erased the addition of nine 100,000-square-foot parcels to the market during the quarter.
The northern Jersey vacancy rate fell from 10.1% at year-end 2012 to 9.3% by March 31. The rate remained flat at 8.2% in central Jersey. Combined, the northern and central markets ended the quarter with an overall vacancy rate of 8.7%.
Sales activity was also strong for the quarter. C&W reported that 7 million squarer feet of industrial property was traded.“For context, 12.8 million square feet was sold in all of 2012,” says Price.
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