Northern and Central Jersey ranked among the highest regions for warehouse development land prices, according to a recent report from CBRE.
The real estate services firm said the average price nationwide for large industrial parcels of 50-100 acres doubled from about $50,000 per acre a year ago to more than $100,000 per acre.
But the report also found that North Jersey had the highest average price per acre in 2017, at $1.75 million. Central Jersey was the No. 3-ranked region, at $650,000 per acre. Northern New Jersey’s average price was up 17 percent, also one of the highest rankings in the country, while Central Jersey’s average was up 10 percent.
“As a result of the shift in consumer purchasing, there’s been a change in the tenant requirements of industrial occupiers who service those customers,” CBRE Executive Vice President Thomas Monahan said. “Demand for buildings greater than 600,000 square feet on the New Jersey Turnpike Corridor remains frothy. Scarcity of both existing inventory and larger sites to accommodate these buildings has placed upward pressure on pricing, pushing land prices and rents to unprecedented levels.”
California’s Inland Empire region ranked first in price increase and second in average price, with its figures up 35 percent in 2017, to $980,000 per acre.
Smaller industrial plots of 5-10 acres saw an increase in per-acre price from about $200,000 a year ago to more than $250,000 in 2017.
CBRE’s New Jersey operations are based in Saddle Brook, with additional offices in East Brunswick, Florham Park and Mount Laurel. To see more of the report, click here.