South Jersey’s industrial vacancy rate increase likely to be temporary, Colliers says

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.