Current Industrial And Flex Market Conditions H2 2021
High demand has spurred developers to break ground on new projects at a record pace. New construction, evident all along the NJ Turnpike and in your hometowns, is spec built for larger users. Seven new industrial facilities were completed in NJ during just the second quarter of 2021, totaling 2.2 Million SF. Those facilities were 98% pre-leased prior to completion. Currently, there are 44 buildings under construction across the state totaling over 13.6 million SF, 28% of which is pre-leased.
- Industrial real estate remains hot; Q2 2021 leasing activity was 13.4 Msf vs Q2 2020 just 10.2 Msf.
- Driven by demand for Class A space. 90% of the top 10 transactions were Class A. Overall 54% of transactions were Class A (7.2 Msf)
- Availability is a historic low of 3.4% – shrinking from 4.1% in Q1 and 4.5% in Q2 2020. Net absorption remained positive for the 34th consecutive quarter.
- Average ask rent Q2 2021: $10.36/sf net, up from $10.05 in Q1 2021 and $9.07 in Q2 2020. Average ask rent for Class A Industrial space is $13.45/sf, an unprecedented increase of 28% from Q1 2021.
Again, such high demand is coupled with a short list of rapidly changing available properties. New opportunities continue to come on the market, but do not last long. Tenants need a knowledgeable, capable and nimble broker in the market who can and will monitor availability to get the right space at the best terms.
Please call us for current availabilities that meet your needs.