PARSIPPANY, NJ—Buoyed by a strengthening economy, the Northern and Central New Jersey industrial market continued to show improvement into the second quarter of 2015, with fundamentals remaining strong, according to research from Colliers International. As industrial leasing activity outpaces last year's rate, additional favorable indicators include increased absorption, a continuing inflow of investment capital, and vibrant construction activity.
“The Northern and Central New Jersey industrial market continues to demonstrate strong leasing activity and demand from occupiers,” says David A. Simon, executive managing director and market leader for the New Jersey operations of Colliers International. “In order to accommodate requirements in the market, we anticipate seeing owners divide larger units that traditionally they may not have considered previously.”
Leasing activity continues to be robust. The 10.9 million square feet leased in the second quarter was up 67.5 percent from 6.5 million square feet a year ago, and though down 3.2 percent from 11.3 million square feet in the first quarter, the 22.2 million square feet leased by mid-year was nearly three quarters of 2014's full-year total. By region, Northern New Jersey registered 4.4 million square feet of second quarter leasing, down from 5.4 million square feet in the first quarter, but up 41 percent from 3.1 million square feet a year ago. Central New Jersey registered 6.6 million square feet of second quarter leasing, up from 5.9 million square feet in the first quarter, and nearly double the 3.4 million square feet leased a year ago.
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