NAI James E. Hanson, a Hackensack-based commercial real estate firm, recently issued its Meadowlands Industrial Report, which noted a .4 percent decrease in vacancies and a 37-cent increase in rent per square foot (PSF) during the final two quarters of 2014 (relative the second half of 2013).
With an average asking rent of $6.46 PSF, a 7.3 percent vacancy rate and net absorption of 588,758 square feet, the Meadowlands remains the most sought-after Industrial submarket in Northern and Central New Jersey. During the second half of 2014, 80 leases for spaces exceeding 20,000 square feet were signed. Over course of the entire year, more than 4.7 square feet were leased.
On the sales side, investors continue to look very favorably upon the submarket’s long-term prospects to generate yield. Over the final six months of last year, more than 24 properties changed hands, including the sale of five-building, 172,000 square foot portfolio. NAI Hanson’s industrial team of Tom Vetter, SIOR and Jeff DeMagistris, SIOR brokered the deal. The two brokers also facilitated 32 lease transactions in 2014 comprising approximately 900,000 square feet.
“The Meadowlands industrial submarket is unique in both its central location, which is near one of the world’s most important ports and several of the East Coast’s most significant highways,” Vetter said. “With the continued emergence of e-commerce, the declining price of gasoline and overall economic growth, we expect that supply will remain tight in this global logistics hub.”Related Articles: