Direct asking rents remained relatively flat for the quarter, experiencing minimal movement in most market segments. In Northern New Jersey, the warehouse distribution direct average rental rate inched higher by $0.03 per square foot to $6.21 per square foot, while in Central New Jersey the rate slipped $0.05, to $4.92 per square foot from $4.97 per square foot at the close of the second quarter.

Available space edged higher during the quarter, from 8.0% to 8.3% statewide. Speculative deliveries combined with more than 10 properties with 100,000 square feet or greater coming on the market. Northern New Jersey recorded a slight down-tick in vacancy to 7.5%, while Central New Jersey rose to 8.5% during the quarter.

Of the five major Turnpike submarkets, only the Meadowlands experienced a decrease in vacancy during the quarter, while the Lower 287 submarket remained flat. A sharp rise in the Port Region was attributed to a slowdown in activity coupled with the addition of three blocks of 100,000-square-foot space, as well as the completion of the 350,000-square-foot 60 Lister Avenue building in Newark.

Despite the up-tick in total vacancy, the New Jersey industrial market saw more than 4.3 million square feet of space absorbed during the third quarter, bringing the year-to-date total to 6.6 million square feet. Brennan noted that more than 3.9 million square feet of build-to-suit deliveries and robust leasing volume in areas like the Meadowlands, Lower 287 and Exit 8A have helped drive the year-to-date positive absorption.

Sales activity also increased by 24% during the quarter. More than 4.6 million square feet of industrial buildings traded hands, resulting in year-to-date sales of 12.6 million square feet.