NJ Dominates Northeastern October Industrial Sales with $1.85B

In the realm of commercial real estate, New Jersey has been a standout performer in the Northeast, maintaining its leading position in industrial sales, according to the latest findings from CommercialEdge's October industrial market report. The report reveals a noticeable decline in transactions through September, with total U.S. industrial sales amounting to $40.3 billion, a substantial drop from the previous year's $65.4 billion.

New Jersey's Pinnacle

Leading Sales Volume and High Prices New Jersey boasts an impressive $1.85 billion in industrial transactions year-to-date through September, firmly establishing itself as the region's top player. What's more, the market in the state achieved the highest sale price, with properties exchanging hands at an average rate of $232 per square foot. Among the bustling submarkets, Cranford-Union stands out as the most active for sales, with $638 million traded across 29 sales. Meanwhile, the I-287 South submarket is hot on its heels, recording 29 sales in 2023, amounting to $601 million.

Key Insights from the Report

Philadelphia Secures Second-Highest Sales Volume: Philadelphia follows New Jersey in the region with a substantial $663 million in transactions, averaging $117 per square foot. New Jersey and Boston Top the Price Charts: In terms of in-place rents, New Jersey and Boston remain the costliest in the Northeast, with lease rates reaching $9.94 per square foot and $9.86 per square foot, respectively. Philadelphia's Development Dominance: Philadelphia continues to lead in development, with a remarkable 16 million square feet of space under construction as of September, constituting 3.8% of the total stock. National Trends: Nationally, in-place industrial rents averaged $7.51 per square foot in September, marking a 7.4% increase year-over-year. The national vacancy rate inched up 20 basis points month-over-month, reaching 4.6%. Furthermore, across the country, nearly 536 million square feet of industrial space were under construction, with total industrial transactions amounting to $40.3 billion through September, averaging $135 per square foot.

In summary, New Jersey's continued dominance in industrial sales, along with key insights from the CommercialEdge report, sheds light on the evolving landscape of the Northeastern industrial real estate market. These findings underscore the region's resilience and dynamism in the face of changing economic conditions.