Jeffrey Furey, managing director at Transwestern

FLORHAM PARK, NJ—Lease deals by quality retailers and logistics companies have led to very tight market conditions in key industrial markets in the Garden State, as well as increased rental rates, according to a report released by commercial brokerage firm Transwestern Commercial Services.

Transwestern reports that average asking rents for industrial space in New Jersey rose to $8.59-per-square-foot, marking the largest quarterly increase since the fourth quarter of 2018.

The industrial market enjoyed a 6.8% increase in rents year over year in the third quarter. The greatest increases in rent were in the Hudson Waterfront, Route 280/Suburban Essex, and Route 46/23/3 submarkets. Overall market rents have increased nearly 30% over the past three years, with all but four of the state's 21 submarkets seeing an increase of at least 10%. Throughout the state, nearly one-third of submarkets averaged rents higher than $9 per square foot, Transwestern reports.