The logistics market in the Northeast industrial corridor continued its strong performance to open 2021, according to real estate firm CBRE.
The corridor, which runs from Boston through New York City into North and Central Jersey and Eastern Pennsylvania, saw leasing continue to outpace supply, rents continue to climb and demand remain insatiable, the firm said in its Northeast U.S. Logistics MarketView Snapshot for the first quarter of the year.
“Northern New Jersey alone posted leasing activity of 3 million square feet, an increase of 84% over Q4 2020,” Vice Chairman Thomas Monahan said in a prepared statement. “Central New Jersey posted a new all-time high average asking rent for Class A industrial space, which climbed 8.8% and closed the first quarter at $10.42 per square foot, while northern New Jersey broke the $15-per-square-foot mark for the first time.”
The vacancy rate came in at 3.9% in the region, while the average asking rent grew to $8.81 per square foot, up 60 cents from Q4 2020.
In addition, 50% of industrial construction currently underway has been preleased in the Northeast region.
CBRE also noted that e-commerce growth was leading investor interest, while foreign investment rose 20% quarter-over-quarter — but real estate investment trust sales dropped 20% quarter-over-quarter.