EAST RUTHERFORD, NJ-Along with California's Inland Empire, northern New Jersey's industrial market activity left the nation in the dust during the first quarter, says Cushman & Wakefield.
A new analysis from the East Rutherford-based company says that national demand dipped 14% compared to one year ago, with only 71 million square feet leased during the first three months of the year.
Some markets, like Atlanta and Houston, saw drastic declines in year-over-year leasing. Only 11 out of 37 major markets reported increased activity year-over-year.
The Inland Empire has a great leap forward, though – 36% more leasing than last year - dominated by build-to-suit “big boxes” for companies such as ICON Fitness and BMW. Although Greater Los Angeles had 24% less activity, that market still led the nation with 8.1 million square feet in deals.
The Inland Empire is the area east of Los Angeles, including the Riverside, San Bernadino and Ontario metropolitan areas.
Northern New Jersey experienced a 15% jump in demand, driven by strong activity in the Meadowlands. That submarket accounted for 48% of activity in the northern half of the state, according to C & W. Also, the port area performed far better than it did last year -outpacing the 2012 quarterly demand by 178%.
There was net absorption of 1.8 million square feet in the first quarter, while in central New Jersey, there was only 60,000 square feet absorbed.
Central Jersey's Q1 was robust, however. There was:
- A 9.3% drop in leasing since last year, but 9.4% more total leasing than in northern Jersey.
- A lull at Exit 8A, typically one of the state's most active markets, but that was offset by a dramatic 82% year-over-year increase in demand in the Lower 287 Corridor.
So far in the second quarter, New Jersey has already seen several significant transactions, C &W, noted, and predicted that “the markets should sustain the momentum of increased demand both in built and under-onstruction properties.”
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