South Jersey’s industrial vacancy rate increased slightly in the third quarter, according to Colliers International’s Q3 2018 Industrial Research & Forecast Report for southern New Jersey.
In the report, Colliers found the industrial vacancy rate increased from 3.8 to 4.1 percent in Q3. This rate is likely to be a temporary increase, Colliers said, as demand remained strong, particularly in new construction.
Other key findings from the report include:
- Year-to-date absorption is down, but still strong at 2.5 million square feet;
- There is 2.3 million square feet of construction scheduled to be completed in the fourth quarter with two-thirds still available.
Sales volume was down in the quarter because of a low supply of properties on the market, the report said.
Average asking rents in South Jersey increased for the sixth consecutive quarter to $4.53 per-square-foot, with Burlington County rents remaining above the market average at $5.30 per-square-foot.
In terms of market activity:
- Amazon occupied 650,000 square feet in Gloucester County;
- Whitesell moved forward with a 310,960-square-foot spec building in the Haines Industrial Center;
- Dermondy Properties has a 194,072-square-foot spec building underway at LogistiCenter;
- Liberty Property Trust has a spec building underway on Dulty’s Lane in Burlington County;
- RLS Logistics opened a food processing and distribution center in Delanco;
- Chelten House completed a 209,437-square-foot distribution center at LogistiCenter.