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NEW JERSEY
Industrial Market Snapshot

Second Quarter 2015
Economy
NEW JERSEY
Economic Indicators
Q2 14
Q2 15
New Jersey Employment
3.24M
3.29M
New Jersey Unemployment
6.2%
6.0%
U.S. Unemployment
6.1%
5.3%
Q2 14
Q2 15
The New Jersey economy is being propelled by the economic

momentum of the country as a whole. Private sector
employment in the U.S. has grown by an average of more than
2.4 million jobs per year over the past 4 years. With incentive
programs that are fueling major transactions as well as
increasing investor confidence in the economy, the industrial
market was full of activity in the first half of 2015. Although
manufacturing is only a small subset of the total employment in
New Jersey, it is a large part of the states total economic output
and will continue to grow as New Jerseys industrial market
strengthens over the next 12 months.1
12-Month
Forecast
Market Indicators
Overall Vacancy
7.4%
6.4%
Net Absorption
-780,991
2,795,402
Under Construction
5.2M
3.0M
Average Asking Rent
$5.75
$5.85
12-Month
Forecast
Market Overview
Leasing activity in the Northern New Jersey industrial market
was robust in the second quarter 2015 resulting in a 40 basis
point decrease in vacancy to 6.9 percent quarter over quarter.
Absorption was recorded at 878,847 positive square feet, the
fourth quarter in a row posting positive absorption and the
highest recorded absorption since the third quarter of 2011.
Asking rents fell slightly to $6.33 per square foot quarter over
quarter, but were still an improvement compared to $6.09 per
square foot during the same quarter a year ago.
Net Absorption/Asking Rent
Net Absorption/Asking Rent

Four Quarter
Trailing Average
4Q TRAILING
AVERAGE
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
-500
-1,000
-1,500
-2,000
$6.40
$6.20
$6.00
$5.80
$5.60
$5.40
$5.20
Nine of the 10 submarkets in Northern New Jersey posted

positive absorption in the second quarter, with Meadowlands
and Hudson Waterfront leading the way. In the Meadowlands
submarket, vacancy declined to 5.5 percent from 6.1 percent the
previous quarter as Graham-Field Health Products leased
104,753 square feet at 33-49 Whelan Road and National
Packaging Services leased a 100,011-square-foot space at 1000
New County Road. In the Hudson Waterfront, vacancy declined
150 basis points with the leasing of the entire property at 150
Industrial Drive in Jersey City by Port Elizabeth Terminal
Warehouse.
$5.00
2010
2011
2012
Net Absorption, 000's
2013
2014
2015
Asking Rent, $ PSF
Overall Vacancy Rate
Overall Vacancy
11.0%
10.5%
10.0%
9.5%
9.0%
8.5%
8.0%
7.5%
7.0%
6.5%
6.0%
5.5%
5.0%
2010
2011
2012
2013
2014
Demand for industrial space is rising in Northern New Jersey

among the majority of industry sectors. The improvements in
the states transportation network, particularly progression in
the Port area, are key contributors to rising leasing activity in that
region. Increased demand will cause rental rates to rise over the
next six months, eventually reaching pre-recession levels.
2015
New Jersey Business Magazine

2
NEW JERSEY

Second Quarter 2015
Improvements in the states transportation

network, particularly progression in the Port
area, are key contributors to rising leasing
activity in that region.
points to 3.8 percent. Atlantic Beverages lease for 104,519
square feet at 450 Oak Tree Avenue and Kubras lease for 96,361
square feet at 30 Knox Drive were partially responsible for this
decline in vacancy. In the Exit 9 submarket, Williams Sonomas
lease at 2801 Route 130 for 318,750 square feet and Lasar
Logistics lease for 228,109 square feet at 5 Broadway Road
contributed to 267,578 positive square feet of absorption within
the submarket.
New Supply Industrial
NEW SUPPLY IS PROJECTED TO REACH ALMOST 2.5 MILLION SQUARE FEET IN 2015.
5000
4000
000s
The Exit 12 submarket was accountable for 58.5 percent of total

absorption in Central New Jersey for the quarter at 1.1 million
positive square feet. Amazons lease for 1.0 million square feet at
8003 Industrial Avenue in Carteret was the largest contributing
factor to an 830-basis-point drop in vacancy to 6.3 percent at
Exit 12. The lowest vacancy for the quarter was recorded in the
Western 287 submarket, which saw a decrease of 160 basis
NEW SUPPLY
3000
2000
1000
Historic Average = 658K SF
0
11
12
13
Outlook

Improvements in the states transportation network will

lead to increases in leasing activity within key markets.
Strong leasing activity will be fueled by rises in

consumer confidence as the market improves.
I ncreased demand for quality industrial space will lead

to increases in rental rates over the next 6 months.
15 16
VACANT SPACE
Vacant Space Industrial
DIRECT VACANT SPACE DECREASED BY APPROXIMATELY 17.9 MILLION SQUARE

FEET OVER THE PAST 5 YEARS.
50
45
40
35
30
25
20
15
10
5
0
2.6
3.0
2.5
2.3
1.6
1.9
42.6
41.3
35.4
33.6
32.8
24.9
Q2 10
Q2 11
Q2 12
Relet
Amazons decision to lease 1 million square feet in Carteret this

quarter among other large deals demonstrates tenants
confidence in the Central New Jersey industrial market. This
strong consumer confidence will continue well into the next year
as tenants take advantage of the healthy industrial market and
vacancy declines even further.
14
MSF
As well as the Northern New Jersey industrial market performed

in the second quarter of 2015, the Central New Jersey industrial
market managed to outshine it, posting 1.9 million square feet of
positive absorption and a 100 basis point decline in vacancy to
5.9 percent. Asking rents were up slightly to $5.23 per square
foot compared to $5.18 the previous quarter. Over 2.5 million
square feet of leasing activity was responsible for the strong
market performance in the second quarter.
Q2 13
Q2 14
Q2 15
Sublet
WAREHOUSE/FLEX ASKING RENTS
Warehouse/Flex Asking Rents
WHILE WAREHOUSE RENTS SHOWED A SLIGHT UPTICK TO $5.59 PSF IN THE

SECOND QUARTER, FLEX RENTS DECLINED BY $0.86 TO $9.68 PSF.
$12.00
$11.00
$10.00
$9.00
$8.00
$7.00
$6.00
$5.00
$4.00
$3.00
$2.00
$1.00
$0.00
2010
2011
2012
Warehouse
2013
2014
2015
Flex, $ PSF
www.dtz.com | 2
NEW JERSEY

Second Quarter 2015
FEATURED SUBMARKETS
NORTHERN NEW JERSEY
Central Bergen
Eastern Morris
Hudson Waterfront
Meadowlands
Northern Bergen
Passaic/Routes 23 & 46
Port/Airport
Union County
West Essex
Western New Jersey
Northern NJ Total
CENTRAL NEW JERSEY
Exit 7A
Exit 8A
Exit 9
Exit 10
Exit 12
Western 287
Monmouth County
Ocean County
Somerset County
Central NJ Total
New Jersey Total
TOTAL
BLDGS INVENTORY
116
13,120,313
175
21,112,804
89
16,312,120
436
60,609,350
133
12,599,566
241
29,180,078
130
22,197,697
182
22,729,173
110
9,789,589
106
15,764,987
1,718 223,415,677
35
225
109
238
79
145
87
63
165
1,146
2,864
11,226,566
56,918,970
16,752,150
40,773,357
13,771,196
17,823,090
10,323,183
5,796,483
19,758,976
193,143,971
416,559,648
DIRECT VACANT
AVAIL
697,697
1,928,412
982,902
3,106,942
1,129,916
819,185
1,493,788
2,493,466
568,214
679,429
13,899,951
TOTAL VACANT
AVAIL
697,697
1,928,412
1,107,835
3,359,903
1,237,916
819,185
1,498,788
2,534,166
721,364
1,262,010
15,167,276
517,699
2,690,747
1,190,322
2,912,093
864,164
598,519
422,234
304,407
1,335,419
10,835,604
24,735,555
517,699
2,909,447
1,190,322
3,016,818
864,164
684,091
422,234
306,407
1,512,809
11,423,991
26,591,267
VACANT
CURRENT NET
AVAIL RATE ABSORPTION
5.3%
60,249
9.1%
70,726
6.8%
253,046
5.5%
330,253
9.8%
(87,486)
2.8%
235,325
6.8%
(140,095)
11.1%
97,701
7.4%
184,140
8.0%
46,988
6.8%
1,050,847
4.6%
5.1%
7.1%
7.4%
6.3%
3.8%
4.1%
5.3%
7.7%
5.9%
6.4%
230,288
(58,722)
267,578
(45,188)
1,120,730
275,495
34,691
26,933
64,750
1,916,555
2,967,402
YTD NET
ABSORPTION
109,427
87,031
585,146
273,534
(67,452)
(40,742)
(140,195)
352,141
190,316
481,084
1,830,290
292,984
(144,004)
136,976
(12,039)
1,561,392
481,084
8,541
9,433
(138,000)
2,196,367
4,026,657
UNDER
AVERAGE ASKING
CONSTRUCTION
RENT
$6.68
$5.95
315,000
$5.46
634,035
$6.36
$8.62
$4.74
$6.16
$5.78
$9.64
180,000
$6.36
1,129,035
$6.35
436,643
695,072
740,384
1,872,099
3,001,134
$4.50
$4.88
$4.18
$5.94
$6.14
$5.19
$6.43
$5.96
$4.51
$5.23
$5.86
Data includes all industrial and flex buildings at least 50,000 square feet in total rentable building area.
Market Statistics may vary from previous quarter as submarkets were re-evaluated and updated for accuracy.
Availability is all properties being marketed as available.
Vacant available is all properties that are marketed as both vacant and available.
Key Lease Transactions 2Q 15

PROPERTY
SF
TENANT
TRANSACTION TYPE
SUBMARKET
8003 Industrial Avenue
1,064,515
Amazon
Lease
Exit 12
23 Mack Drive
359,950
Romark Logistics of NJ, LLC
Renewal
Exit 10
2801 Route 130
318,750
Williams Sonoma
Lease
Exit 9
5 Broadway Road
228,109
Lasar Logistics
Lease
Exit 9
699 Kapkowski Road
212,545
ShipCo
Renewal
Port/Airport
40-50 Seaview Drive
178,516
ZT Systems
Lease
Meadowlands
PROPERTY
SF
SELLER/BUYER
PRICE
SUBMARKET
200 Milik Street
232,000
The Hampshire Companies/TIAA-CREF
$49,500,000
Exit 12
1800 Lower Road
386,000
Waitex/CenterPoint Properties
$36,208,398
Port/Airport
55 Shepherd Lane
172,531
55 Shepherds Realty LLC/Sitex Realty Group
$8,927,000
Passaic/Routes 23-46
121 Market Street
114,680
Aee Real Estate Holdings/141 Market St

Realty LLC
$8,250,000
Union County
Key Sales Transactions 2Q 15
www.dtz.com | 3
NEW JERSEY

Second Quarter 2015
Industrial Submarkets
New Jersey
513
511
NORTHERN BERGEN
513
17
CENTRAL BERGEN
PASSAIC
80
EASTERN MORRIS
287
WESTERN NJ
WEST ESSEX
510
MEADOWLANDS
513
UNION COUNTY
512
HUDSON
PORT/ WATERFRONT
AIRPORT
78
I-78 WEST
22
31
SOMERSET COUNTY
EXIT 12
EXIT 10
202
De
law
are
EXIT 9
R.
31
1
9
95
MONMOUTH COUNTY
EXIT 8A
95
EXIT 7A
195
OCEAN COUNTY
72
Liliya Magid
Research Analyst
About DTZ
DTZ is a global leader in commercial real estate services providing occupiers, tenants and investors around
the world with a full spectrum of property solutions. Our core capabilities include agency leasing, tenant
representation, corporate and global occupier services, property management, facilities management,
26 Main Street
Suite 202
Chatham, NJ 07928
Tel: 973 908 6118
Email: [email protected]
facilities services, capital markets, investment and asset management, valuation, building consultancy,
research, consulting, and project and development management. DTZ manages 3.3 billion square feet and
$63 billion in transaction volume globally on behalf of institutional, corporate, government and private
clients. Our more than 28,000 employees operate across more than 260 offices in more than 50 countries
and proudly represent DTZs culture of excellence, client advocacy, integrity and collaboration. For further
information, visit: www.DTZ.com or follow us on Twitter @DTZ.
The information contained within this report is

gathered from multiple sources considered to
be reliable. The information may contain errors
or omissions and is presented without any
warranty or representations as to its accuracy.
Copyright 2015 DTZ.
All rights reserved.
www.dtz.com | 4

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NEW JERSEY

Industrial Market Snapshot

New Jersey Employment

New Jersey Unemployment

The New Jersey economy is being propelled by the economic

Average Asking Rent

Net Absorption/Asking Rent

Net Absorption/Asking Rent

Nine of the 10 submarkets in Northern New Jersey posted

Net Absorption, 000's

Asking Rent, $ PSF

Overall Vacancy Rate

Demand for industrial space is rising in Northern New Jersey

New Jersey Business Magazine

Industrial Market Snapshot

Improvements in the states transportation

New Supply Industrial

The Exit 12 submarket was accountable for 58.5 percent of total

Historic Average = 658K SF

Improvements in the states transportation network will

Strong leasing activity will be fueled by rises in

I ncreased demand for quality industrial space will lead

Vacant Space Industrial

DIRECT VACANT SPACE DECREASED BY APPROXIMATELY 17.9 MILLION SQUARE

Amazons decision to lease 1 million square feet in Carteret this

As well as the Northern New Jersey industrial market performed

WAREHOUSE/FLEX ASKING RENTS

Warehouse/Flex Asking Rents

WHILE WAREHOUSE RENTS SHOWED A SLIGHT UPTICK TO $5.59 PSF IN THE

Industrial Market Snapshot

Key Lease Transactions 2Q 15

8003 Industrial Avenue

Romark Logistics of NJ, LLC

2801 Route 130

699 Kapkowski Road

40-50 Seaview Drive

200 Milik Street

The Hampshire Companies/TIAA-CREF

1800 Lower Road

55 Shepherds Realty LLC/Sitex Realty Group

121 Market Street

Aee Real Estate Holdings/141 Market St

Key Sales Transactions 2Q 15

Industrial Market Snapshot

The information contained within this report is

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I ncreased demand for quality industrial space will lead