Woodmont and Sagard Start Redevelopment of Rahway 280k SF Industrial Site

• Woodmont Industrial Partners and Sagard Real Estate have broken ground on a 25-acre industrial redevelopment in Rahway, New Jersey.
• The project will replace an obsolete 212,000-square-foot facility with two new Class A warehouse buildings totaling more than 280,000 square feet.
• Construction is expected to be completed during the first quarter of 2027, located at 349 and 389 New Brunswick Avenue.

What the Redevelopment Includes

Woodmont Industrial Partners, in partnership with Sagard Real Estate, has begun construction on a new industrial campus at 349 and 389 New Brunswick Avenue in Rahway, New Jersey. The redevelopment will transform a 25-acre site previously occupied by an outdated 212,000-square-foot industrial building, which has already been demolished. The new development will feature two Class A warehouse buildings totaling approximately 280,000 square feet. Construction is currently underway, with completion targeted for the first quarter of 2027.

What the New Industrial Buildings Will Offer

The larger building at 349 New Brunswick Avenue will include approximately 201,000 square feet of warehouse space and 3,000 square feet of office space. It will feature a 36-foot clear height, 41 dock doors, and two drive-in doors designed to accommodate modern logistics and distribution operations. The second building at 389 New Brunswick Avenue will provide approximately 76,000 square feet of warehouse space and 2,500 square feet of office space. The facility will offer a 40-foot clear height, eight dock doors, and one drive-in door, making it suitable for a range of industrial users.

What Makes the Location Strategic

Located just off Route 35, the development offers quick access to the Garden State Parkway and the New Jersey Turnpike, providing efficient regional transportation links. The site is also within a 30-minute drive of Port Newark/Elizabeth and Newark Liberty International Airport, positioning the project to serve companies involved in port logistics, e-commerce, manufacturing, and regional distribution.

What This Means for New Jersey's Industrial Market

The Rahway redevelopment reflects continued investor confidence in New Jersey's industrial sector, where demand for modern warehouse space remains strong. According to industry data, the state recorded $1.3 billion in industrial property sales through April, ranking among the nation's most active industrial investment markets. Although new industrial construction has increased, deliveries have remained below demand, helping vacancy rates stay below the national average while supporting continued rent growth. The project also expands Woodmont Industrial Partners' growing New Jersey portfolio following recent developments in Woodbridge, South Amboy, and Franklin Township. For Sagard Real Estate, the redevelopment complements its broader industrial investment strategy focused on key logistics markets throughout the United States.