Signs of Improvement: New Jersey Industrial and Commercial Real Estate First Quarter 2013

Commercial Real Estate in New Jersey

While commercial and industrial real estate markets continue to remain relatively stagnant in other parts of the region, these sectors are seeing signs of improvement and growth in New Jersey.

Tarvin Commercial ImageData suggests that the overall industrial vacancy rate for North New Jersey in the first quarter of 2013 fell one percentage point to 9.3 percent, as compared to the same period last year. While there are many factors that contribute to this drop in vacancy, the New Jersey Commercial Real Estate firm Tarvin Commercial says part of the drop can be attributed to the fact that this region is becoming a hub for data center development. While many of these deals involve new construction, many also included the use of existing industrial warehouse space in the region. The largest lease signings occurring thus far in 2013 included: the 198,440-square foot lease signed by Ashland, Inc. and the 152,000-square foot deal signed by Amneal Pharmaceuticals, both at the New Jersey Center of Excellence in Somerset, a State-OF-The-Art Life Science Campus formerly owned/occupied by Saofi-Aventis which was recently acquired by Advance Realty and the 147,000-square foot lease signed by Tory Burch at Carteret Distribution Center.

Progress was shown locally as well. For example, Bergen County saw its industrial vacancy rate decline from 11.2 percent a year ago to 10.3 percent in the first quarter of 2013. Although the county did not see a drop, Passaic County remained unchanged at 8.4 percent, indicating stabilization.

There are a number of reasons why the North Jersey industrial market is seeing an increase in demand, creating an uptick that is mainly being seen in warehouse and distribution space. One of the reasons, cites Tarvin Commercial, is the pent-up demand for space that was caused by the recession. As consumer confidence begins to rebound, companies are looking to supply and ship more goods. Rising e-commerce sales are also fueling a need for distribution outlets in neighboring markets like the New York metro area.

Life Science Building in BrooklynInterestingly, while there is growing demand, there is actually limited amount of industrial and quality commercial space in North New Jersey, particularly in Bergen and Passaic Counties. Because builders were hesitant to start new projects during the economic downturn, much of the remaining inventory is existing space from prior to the decline. Several projects are underway however, such as the Elizabeth Logistics Center, scheduled for completion in Second Quarter 2013, and the Panasonic Technology Center, scheduled for Fourth Quarter 2013. Other exciting projects include the New York Science & Technology Center@ BioBAT in Brooklyn, a state-of-the-art complex designed specifically for life sciences operations.

The New Jersey commercial and industrial real estate specialists at Tarvin Commercial are renowned for their progressive and sophisticated approach to real estate. They leverage their market knowledge and real estate experiences to not only meet the goals of their clients, but to also exceed them. Operating under the direction of Andrew Tarvin, a 20-year veteran of the commercial real estate industry, clients across the Tri-State Region continue to turn to Tarvin Commercial for all their real estate needs.

From life sciences clients such as the Profectus BioSciences or Life Sciences facilities such as New York Science & Technology at BioBAT, to office and industrial space such as the Capitol Records CEMA/Distribution office and GenCorp branch office, Tarvin has had their hand in a number of key New Jersey transactions throughout the years. They have the experience needed to ensure your success. There has never been a better time to take advantage of this commercial real estate market! Connect with Tarvin Commercial today to learn more and to discuss the many opportunities available to your business. They look forward to hearing from you soon and to seeing continued signs of growth in New Jersey.