NJ Industrial Rents Skyrocket Past $7 Threshold, A New High

Jeffrey Furey, left, managing director, and Matthew Dolly, New Jersey research director, Transwestern

PARSIPPANY, NJ—Bolstered by unabated demand and new development, New Jersey’s industrial market saw its average rental rate continue to skyrocket during the second quarter, eclipsing the $7 level for the first time ever, according to Transwestern’s Second-Quarter 2017 Industrial Market Report.

At $7.26 per square foot, the average asking rent is up 15 percent from a year ago, and $2 per square foot higher than it was five years ago. The $7 level was broken in 15 of the 25 submarkets Transwestern examined, and four submarkets even recorded asking rents above $8 per square foot during the second quarter.