Avison Young on Monday released its Second Quarter 2022 Industrial Market Insights Report for New Jersey. The report reveals that industrial leasing velocity has seen
significant strength as demand persists, pushing vacancy rates to remain historically low at
2.6%, and absorption rates enable balance within the market.
“Business is continuing to grow in the second quarter, fueling efforts to attract and retain
talent and a skilled workforce. Companies are opening new frontiers within the industrial
market, seeking those sites most accessible by major arterial roads and highways, which
propel demand for new and revitalized space to come online,” Jeffrey Heller, principal and
managing director of Avison Young’s New Jersey office, stated. “New Jersey is growing stronger quarter to quarter, with more than 33 million square feet being added to the market and historically low vacancy rates.”
The total second quarter availability rate continues to consistently decline in recent
quarters, even with tens of millions of square feet being delivered to market. As this space is absorbed, asking rents will continue to increase. Absorption has turned negative due to
large blocks of space continually being delivered.