PARSIPPANY, NJ—A surge in fourth quarter activity pushed 2017 industrial leasing to 44.8 million square feet—the third consecutive year annual total leasing activity surpassed 40.0 million square feet, according to Colliers International.

Following a summer slowdown, industrial tenants leased 13.9 million square feet during the final three months of the year, representing a 52.8 percent jump quarter-over-quarter. A nearly 1.4 million-square-foot lease renewal by Williams Sonoma at 340 Middlesex Center Blvd. in South Brunswick led the pack, followed by a 725,400-square-foot pre-lease by Best Buy at 171 River Road in Piscataway and a 597,594-square-foot new lease by Amazon at 18 Applegate Drive in Robbinsville.

“2017 industrial leasing was up seven percent over the previous five-year average of 41.7 million square feet,” says David A. Simon, SIOR, executive managing director and New Jersey market leader. “Robust tenant demand continues to drive down the availability rate, even though new product is being brought to the market at a rapid pace. With just 6.1 percent industrial availability, developers have accelerated their construction schedules. During the fourth quarter, 10 projects totaling 4.5 million square feet broke ground, bringing the total construction pipeline to 45 properties totaling 17.1 million square feet.”