Industrial property demand in New Jersey remained strong in the second quarter, according to the report Avison Young…
The real estate firm said in its Industrial Insights report for the second quarter of 2021 that annual leasing activity was 7.8% above the 20-year average and vacancy rates hit a 15-year low of 3.2%.
“The New Jersey industrial market has been stable throughout the pandemic and continues to be a hotbed for both end users and investors,” said Jeffrey Heller, CEO and managing director of Avison Young’s New Jersey office, in a prepared statement. “Asking rents have continued to rise, increasing 83.3% over the past six years, creating a favorable market environment for landlords, which has led to a steady decline in concession rates.”
Demand for large areas has boosted construction activity in this quarter, Avison Young said, with about 47.1% of buildings under construction exceeding 750,000 square feet.
However, the lack of supply has become a problem for the sector, despite the volume of investments of $ 3.9 billion since the beginning of 2020.
“While strong industrial fundamentals have accelerated during the pandemic (and) continue to attract investors, a lack of supply from the selling side could impede dollar volume growth in the near future,” said Jason Bloom, an analyst for the Northeast from New Jersey. office, the statement said. “This also led to higher estimates, which have increased by 31.4% since the first quarter of 2020.”
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