JW Fulfillment Signs 342K SF Lease at Trammell Crow's Sayreville Logistics Center

Trammell Crow Co. has secured a full-building lease at the Arsenal Trade Center in Sayreville, New Jersey, which encompasses a 1 million-square-foot logistics center. JW Fulfillment Inc., a wholesale distribution company from China, has leased the 342,371-square-foot Building 2 at 99 Callahan Blvd. The lease transaction was facilitated by CBRE for the owner and Cushman & Wakefield for the tenant.

JW Fulfillment's Expansive Operations

JW Fulfillment operates in several countries, including the U.S., Canada, the United Kingdom, and Germany, with locations in major metropolitan areas such as Los Angeles, Dallas, Atlanta, and New Jersey. The company's clientele includes prominent names like Amazon, Walmart, Wayfair, and eBay.

Development and Features of Arsenal Trade Center

The Arsenal Trade Center, developed by Trammell Crow Co. in collaboration with CBRE Investment Management, became operational earlier this year. The development spans a 74-acre site acquired in 2022. The property's name harks back to its history as a former site of Hercules Inc., a munitions manufacturer.

Availability and Specifications

Currently, Buildings 1 and 3, offering 285,000 and 451,602 square feet respectively, are unleased. These buildings feature high-end specifications including 40-foot clear ceilings, abundant car and truck parking, and a 30-year PILOT (payment in lieu of taxes). Leasing opportunities start at 80,000 square feet. Marketing and leasing efforts are managed by the CBRE team of Tom Monahan, Larry Schiffenhaus, and Brian Golden, with Charles Fern and Jimo Liu of Cushman & Wakefield representing tenants.

New Jersey’s Industrial Market Trends

New Jersey’s industrial market is experiencing a relatively steady phase with an average triple-net asking rent of $16.12 per square foot, according to a first-quarter report by Avison Young. However, leasing activity is slow, with only 4.9 million square feet leased compared to the historical average of nearly 11 million square feet for the first quarter. The market faces a supply-demand imbalance, as new construction surpasses demand, leading to nine new industrial buildings of 100,000 square feet or more being delivered empty. Currently, about 25% of the 17.1 million square feet under construction is preleased.