The continued leasing momentum also improved the overall third quarter availability rate to 10.6 percent, down 50 basis points (bps) from 11.1 percent the previous quarter — its lowest level since the first quarter of 2010 — and down 150 bps from 12.2 percent year-over-year. At 5.7 msf, Northern and Central New Jersey also registered its 11th consecutive quarter of positive net absorption, compared with 3.8 msf in the second quarter and 3.9 msf the prior year
Furthermore, overall third quarter asking rents for warehouse space — the predominant subset of all industrial property types — in Northern and Central New Jersey reached $5.68/sf, up slightly from $5.60/sf the previous quarter and $5.46/sf year-over-year. Third quarter asking rents were also up 15 percent from the five-year low in 2011, with no signs of weakening.
“The industrial sector in Northern and Central New Jersey remains strong, with 29 percent of the overall leasing activity occurring in the Class A sector,” said David A. Simon, SIOR, Executive Managing Director and Market Leader for the New Jersey operations of Colliers International. “In Northern New Jersey there was a 72 percent increase in net absorption compared with the prior quarter. In Central New Jersey, Class A inventory achieved rental rates 18.6 percent above average asking rents. Demand for this product, coupled with a limited supply, is driving new construction.” ”
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