SECAUCUS, NJ—Industrial space in key submarkets along the New Jersey Turnpike remains tight, with many large users bidding for the same space, and rents are continuing to rise at an unprecedented pace, according to researchers with Transwestern, a major broker of industrial properties.
For example, the actual rent on one recent lease at Exit 10/Edison was nearly $4 per square foot higher than the asking price. At Exit 13A in Elizabeth, the average asking rent was $6.46 and several tenants paid north of $8.00, say Larry Schiffenhaus, assistant vice president and Alex Previdi, managing director, who authored the Transwestern research. At Exit 16W/Meadowlands, rents have climbed to pre-recession levels and now average $7.26 per square foot, after falling to as low as $5.52 during the fourth quarter of 2010.
“We've never seen demand like this, and obviously the rents have followed suit,” says Previdi. He and Schiffenhaus work out of Transwestern's Parsippany, NJ, office.
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