The Northeast industrial corridor, which includes North and Central Jersey, saw a strong end to 2020, according to a report from CBRE.
The region, which also includes New York City, Eastern Pennsylvania and the Greater Boston area, saw net absorption exceed the 2019 figure in 2020, among other positive signs, the real estate firm said in its latest Northeast U.S. Logistics report.
The report said net absorption in the region finished 8 million square feet higher, year-over-year, with asking rents up a quarter per square foot and vacancies continuing to drop dramatically.
New Jersey saw particular strength, the firm noted.
“Northern New Jersey fell to 2.3% (vacancy rate) and central New Jersey saw vacancies of just 1.6%,” Thomas Monahan, a CBRE vice chairman and industrial broker, said in a prepared statement. “E-commerce and third-party logistics dominated the share of leasing activity, driven by continued COVID-19 stay-at-home protocols and holiday shopping. Wholesale and retail constituted a significant share, as well, spurred by grocery sales and storage.”
CBRE also said e-commerce companies “have been insatiable” in their demand throughout the region.
The firm also said investment sales nearly doubled in the fourth quarter from the previous quarter, with the $120 million deal for 38 Porete Ave. in North Arlington standing as the highest price paid for a single property in Q4.