By Greg Brown, NAI Dileo-Bram & Co.
Central New Jersey has seen a significant increase in demand for industrial assets under 100,000 s/f. Coming out of the last economic recession, industrial real estate
values have returned to pre-recession values or even exceeded them.
Industrial real estate, particularly the well located assets in New Jersey, are some of the most sought after real estate in today’s market. Let’s cover 2 reasons why:
Lack of inventory. When you talk about a lack of inventory, demand outpaces supply. The increase to the demand side has largely been driven by 2 factors- increases in consumer spending and specifically the increase in e-commerce. New Jersey has long benefited from its close proximity to major ports, New York City and a road network enabling quick access to the major population centers in the Northeast. When e-commerce consumers demand products in hours, not days or weeks, those e-retailers need to be close to the city. This has produced tremendous rent growth in Northern New Jersey and is now migrating south. Overall consumer spending increases the demand for warehouse space as well. There is a need to store and distribute all goods- not just the ones purchased on Amazon or Boxed.com.
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