PARSIPPANY, NJ—Following consecutive years of record growth, the Port of New York and New Jersey's cargo volume for 2016 finished slightly below the record-setting 2015 level, but is ahead of last year's pace as of February 2017. This rising tide of cargo is driving the New Jersey industrial market's vacancy rate to its lowest level in nearly 17 years, according to Transwestern's First-Quarter 2017 Industrial Market Report.

The current vacancy rate of 5.1 percent, a significant improvement from 6.5 percent a year ago, can be attributed to 16 consecutive ­quarters of positive net absorption – 15 of which saw more than a million square feet absorbed. First quarter 2017 was the third consecutive quarter during which more than 10 million square feet was absorbed over a 12-month period – a feat that hadn't been achieved since 2003.

“Continued leasing in newly constructed buildings demonstrates the pent up demand for top-quality space,” Transwestern's New Jersey research director, Matt Dolly, tells GlobeSt.com exclusively. “As the long pipeline of new projects in New Jersey fill up with tenants, its integral that the state continues to address the shortage of qualified workers within its manufacturing industry.”