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CENTRAL NEW JERSEY/I-95 TURNPIKE CORRIDORQ4 2017 INDUSTRIAL KEY MARKET SNAPSHOTS
Rick Marchisio | Principal/PresidentD: 973.475.7055 • C: 908.930.7306rick.marchisio@lee-associates.com
Crista Governara | Vice PresidentD: 732.204.1121 • C: 973.868.4949cgovernara@lee-associates.com
Drew Maffey | Assistant Vice PresidentD: 973.406.2493 • C: 908.217.9746drew.maffey@lee-associates.com
Licensed Real Estate Broker
I-95 / NJ TURNPIKE CORRIDORQ3 2019 INDUSTRIAL MARKET SNAPSHOTLEE &
ASSOCIATESCOMMERCIAL REAL ESTATE SERVICES
Licensed Real Estate Broker Follow us!
669 River Drive, Suite 201 | Elmwood Park, NJ 07407 | 973.337.1144 • 110 Fieldcrest Avenue, Suite 5 | Edison, NJ 08817 | 732.452.0750 • lee-associates.com/newjersey page 1
Licensed Real Estate Broker Follow us!
669 River Drive, Suite 201 | Elmwood Park, NJ 07407 | 973.337.1144 • 110 Fieldcrest Avenue, Suite 5 | Edison, NJ 08817 | 732.452.0750 • lee-associates.com/newjersey
I-95 / NJ TURNPIKE CORRIDORQ3 2019 INDUSTRIAL MARKET SNAPSHOT
page 2
Source: CoStar, Real Capital Analytics and Reis. All Information is from a source deemed reliable, however no representation, expressed or implied is made as to the accuracy of the information contained herein, and same is submitted subject to errors, omission, change of price, rental or other conditions imposed by our principals.
Licensed Real Estate Broker Follow us!
669 River Drive, Suite 201 | Elmwood Park, NJ 07407 | 973.337.1144 • 110 Fieldcrest Avenue, Suite 5 | Edison, NJ 08817 | 732.452.0750 • lee-associates.com/newjersey
I-95 / NJ TURNPIKE CORRIDORQ3 2019 INDUSTRIAL MARKET SNAPSHOT
page 3
Source: CoStar, Real Capital Analytics and Reis. All Information is from a source deemed reliable, however no representation, expressed or implied is made as to the accuracy of the information contained herein, and same is submitted subject to errors, omission, change of price, rental or other conditions imposed by our principals. Source: CoStar, Real Capital Analytics and Reis. Source: CoStar, Real Capital Analytics and Reis. All Information is from a source deemed reliable, however no representation, expressed or implied is made as to the accuracy of the information contained herein, and same is submitted subject to errors, omission, change of price, rental or other conditions imposed by our principals. All Information is from a source deemed reliable, however no representation, expressed or implied is made as to the accuracy of the information contained herein, and same is submitted subject to errors, omission, change of price, rental or other conditions imposed by our principals.
All information is from a source deemed reliable, however no representation, expressed or implied is made to the accuracy of the information contained
herein, and same is submitted subject to errors, omission, change of price, rental or other conditions imposed by our principals.
669 River Drive, Suite 201
Elmw
ood Park, NJ 07407
973.337.1144 - Fax 888-267-3446
lee-associates.com/new
jersey
110 Fieldcrest Avenue, Suite 5
Edison, NJ 08837
732.452.0750 - Fax 732.452.0752
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Licensed Real Estate Broker Follow us!
669 River Drive, Suite 201 | Elmwood Park, NJ 07407 | 973.337.1144 • 110 Fieldcrest Avenue, Suite 5 | Edison, NJ 08817 | 732.452.0750 • lee-associates.com/newjersey
I-95 / NJ TURNPIKE CORRIDORQ3 2019 INDUSTRIAL MARKET SNAPSHOT
page 4
Source: CoStar, Real Capital Analytics and Reis. All Information is from a source deemed reliable, however no representation, expressed or implied is made as to the accuracy of the information contained herein, and same is submitted subject to errors, omission, change of price, rental or other conditions imposed by our principals.
Market # of Properties Inventory SF Total Vacant SF Total Vacancy Vacancy Quarterly Change (bps) Total Availability Net Absorption SF Industrial Avg. NNN
Rent Flex Avg. NNN Rent Under Construction SF Delivered SF Proposed SF
New Jersey 20,886 958,304,109 38,969,110 4.1% (14) 7.0% 3,232,912 $7.49 $11.55 11,932,098 2,012,938 33,589,521
Northern & Central New Jersey 18,287 841,708,974 34,900,531 4.1% (10) 6.7% 1,893,066 $8.46 $12.33 7,624,503 1,132,758 25,016,402
I-95 / NJ TURNPIKE CORRIDOR 4,450 312,491,090 9,419,943 3.0% (0) 5.5% 911,482 $9.23 $18.34 3,728,467 934,382 14,526,258
Market # of Properties Inventory SF Total Vacant SF Total Vacancy Vacancy Quarterly Change (bps) Total Availability Net Absorption SF Industrial Avg. NNN
Rent Flex Avg. NNN Rent Under Construction SF Delivered SF Proposed SF
Class A 206 76,370,366 2,184,688 2.9% (77) 7.6% 1,393,043 $9.94 $14.84 3,446,976 838,574 13,321,112
Class B 1,340 135,320,247 4,538,353 3.4% 42 5.3% (470,526) $9.66 $18.95 281,491 95,808 1,205,146
Class C 2,904 100,800,477 2,696,902 2.7% 1 4.1% (11,035) $8.59 $15.99 0 0 0
TOTAL: 4,450 312,491,090 9,419,943 3.0% (0) 5.5% 911,482 $9.23 $18.34 3,728,467 934,382 14,526,258
IINNDDUUSSTTRRIIAALL QQ33 22001199 MMAARRKKEETT SSNNAAPPSSHHOOTT
II--9955 // NNJJ TTUURRNNPPIIKKEE CCOORRRRIIDDOORR IINNDDUUSSTTRRIIAALL MMAARRKKEETT BBRREEAAKKDDOOWWNN
Licensed Real Estate Broker Follow us!
669 River Drive, Suite 201 | Elmwood Park, NJ 07407 | 973.337.1144 • 110 Fieldcrest Avenue, Suite 5 | Edison, NJ 08817 | 732.452.0750 • lee-associates.com/newjersey
I-95 / NJ TURNPIKE CORRIDORQ3 2019 INDUSTRIAL MARKET SNAPSHOT
page 5
Source: CoStar, Real Capital Analytics and Reis. All Information is from a source deemed reliable, however no representation, expressed or implied is made as to the accuracy of the information contained herein, and same is submitted subject to errors, omission, change of price, rental or other conditions imposed by our principals.
$9.94
$10.44
$8.77
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
Q3 2014 Q3 2015 Q3 2016 Q3 2017 Q3 2018 Q3 2019
DIR
EC
T N
NN
RE
NTS
AVERAGE NNN RENTS
Class A Class B Class C
Source: CoStar
Source: CoStarD
IREC
T N
NN
REN
TSD
IREC
T A
VAIL
IBIL
ITY
& V
AC
AN
CY
7.6%
5.3%
4.1%
2.9%
3.4%
2.7%0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
Q2 2014 Q2 2015 Q2 2016 Q2 2017 Q2 2018 Q2 2019DIR
EC
T A
VA
ILA
BIL
ITY
AN
D V
AC
AN
CY
AVAILABILITY & VACANCY
Class A Class B Class C Class A Class B Class CAVAILABILITY VACANCY
Licensed Real Estate Broker Follow us!
669 River Drive, Suite 201 | Elmwood Park, NJ 07407 | 973.337.1144 • 110 Fieldcrest Avenue, Suite 5 | Edison, NJ 08817 | 732.452.0750 • lee-associates.com/newjersey
I-95 / NJ TURNPIKE CORRIDORQ3 2019 INDUSTRIAL MARKET SNAPSHOT
page 6
Source: CoStar, Real Capital Analytics and Reis. All Information is from a source deemed reliable, however no representation, expressed or implied is made as to the accuracy of the information contained herein, and same is submitted subject to errors, omission, change of price, rental or other conditions imposed by our principals.
934 911
3,728 5.9
-
2
4
6
8
10
12
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
Q3 2014 Q3 2015 Q3 2016 Q3 2017 Q3 2018 Q3 2019
MO
NTH
S TO
LEA
SE
THO
USA
NDS
OF
SQUA
RE F
EET
New Supply Net Absorption Under Construction Months to Lease
110
63
51
18
8
4
0
0
57
76
61
31
20
13
1
4
3
3
13
5
9
6
5
9
0 20 40 60 80 100 120
≤ 5,000 SF
5,001-15,000 SF
15,001-45,000 SF
45,001-75,000 SF
75,001-150,000 SF
150,001-250,000 SF
250,001-350,000 SF
350,001+ SF
# OF BLOCKS OF CONTIGUOUS SPACE
Class A
Class B
Class C
NEW SUPPLY, NET ABSORPTION, UNDER CONSTRUCTION & LEASE-UP TIME
BLOCKS OF AVAILABLE CONTIGUOUS SPACE
Source: CoStar
Source: CoStar
Licensed Real Estate Broker Follow us!
669 River Drive, Suite 201 | Elmwood Park, NJ 07407 | 973.337.1144 • 110 Fieldcrest Avenue, Suite 5 | Edison, NJ 08817 | 732.452.0750 • lee-associates.com/newjersey
I-95 / NJ TURNPIKE CORRIDORQ3 2019 INDUSTRIAL MARKET SNAPSHOT
page 7
Source: CoStar, Real Capital Analytics and Reis. All Information is from a source deemed reliable, however no representation, expressed or implied is made as to the accuracy of the information contained herein, and same is submitted subject to errors, omission, change of price, rental or other conditions imposed by our principals.
TENANT SIGN DATE ADDRESS SFBLDG. CLASS
NNN RENT PSF
TERM (months)
RENTAL ESCALTIONS
CEILING HEIGHT
YEAR BUILT / RENOVATED
TYPE NOTES
Essendant Inc. JUL 2019 100 Liberty Way, Cranbury 575,000 A $7.25 120 3.00% 36' 2003 RENEWAL$1.04 PSF TI, 98 docks, 4 drive-ins, 15k SF office, 100 car parking, ESFR sprinklers
Performance Team JUL 201922 Hightstown Cranbury Station Rd., Bldg. 3, Cranbury
444,426 A $7.50 60 3.00% 40' N / A NEW 111 docks
Logistics Plus SEP 2019 200 Docks Corner Rd., Dayton 309,925 A $6.60 78 3.50% 20' 1957 / 2013 NEW 1 month free, 29 docks, ESFR sprinklers
Garden State Cold Storage JUL 2019 580 Port Carteret Dr., Carteret 278,936 A $15.00 180 N / A 30' 1997 / 2002 NEW44 docks, 21k SF office, 66 car parking, 206 trailer parking
UDS JUL 2019 8 Santa Fe Way, Cranbury 176,540 A $7.25 60 N / A 32' 2001 NEW 26 docks, ESFR sprinklers,
United Airlines JUL 2019 256 Vanderpool St., Newark 175,000 A $10.10 180 N / A 40' 2018 NEW 32 docks, ESFR sprinklers, 1 drive-in
N / A JUL 2019 20 Tower Rd., South Brunswick 167,812 B $9.50 36 N / A 32' 1989 RENEWAL32 docks, 8.4k SF office, 100 trailer parking, 86 car parking
Peleton AUG 2019 1500 Blair Rd., Carteret 156,067 A $9.50 60 3.00% 36' 2018 NEW17 docks, 1 drive-in, ESFR sprinklers, 3.1k SF office, 58 car parking
Di Pinto International Logistics
JUL 2019 1400 Corbin St., Elizabeth 138,400 B $7.00 N / A N / A 22' 2000 NEW dry sprinklers, 24 docks, 2 drive-ins
Goodwill of NY and Northern NJ
AUG 2019 400 Huyler St., South Hackensack 126,433 A $13.94 240 3.00% 40' 1953 NEWESFR sprinklers, 22 docks, 1 drive-ins, 109 car / 35 trailer parking
Arrival Tech JUL 2019 150 Whitman Ave., Edison 124,560 A $9.50 120 3.00% 36' 2019 NEW $4 PSF TI, 23 docks,
UPS JUL 2019 1400 Randolph Ave., Avenel 85,119 A $10.35 60 3.00% 36' 2018 NEW ESFR sprinklers
Sonwil SEP 2019 510 Commercial Ave., Carlstadt 79,000 B $10.15 60 N / A 20' 1966 NEWWet sprinklers, 6 docks, 3k SF office, 74 car parking
Cannabis Company JUL 2019 2600 71st St., North Bergen 62,000 B $9.50 120 2.00% 22' 1973 / 2003 NEWWet sprinklers, 4 docks, 1 drive-ins, 2.5k SF office, 32 car parking, 100 trailer parking
Cannabis Company AUG 2019 45 Jiffy Rd., Somerset 55,900 A $10.50 120 N / A 36' 2019 NEW8 docks, 2 drive-ins, ESFR sprinklers, 3k SF office, 39 car parking
VAL Holdings JUL 2019 90 Triangle Blvd., Carlstadt 50,000 B $10.75 60 3.50% 18' 1970 NEW 3 docks, 1 drive-ins, 5k SF office, wet sprinklers
- - WEIGHTED AVERAGE: 187,820 - $9.04 104 3.00% 33' 1993 / 2006 - -
I-95 NJ TURNPIKE CORRIDOR Q3 2019 NOTABLE INDUSTRIAL LEASES
Licensed Real Estate Broker Follow us!
669 River Drive, Suite 201 | Elmwood Park, NJ 07407 | 973.337.1144 • 110 Fieldcrest Avenue, Suite 5 | Edison, NJ 08817 | 732.452.0750 • lee-associates.com/newjersey
I-95 / NJ TURNPIKE CORRIDORQ3 2019 INDUSTRIAL MARKET SNAPSHOT
page 8
Source: CoStar, Real Capital Analytics and Reis. All Information is from a source deemed reliable, however no representation, expressed or implied is made as to the accuracy of the information contained herein, and same is submitted subject to errors, omission, change of price, rental or other conditions imposed by our principals.
Source: CoStar
* Denotes Lee & Associates NJ Transaction
PROPERTY SALE DATE SIZE (SF) PRICE PSFCEILING HEIGHT
YEAR BUILT / RENOVATED
BLDG. CLASS
SELLER / BUYER NOTES
225 Long Ave., Bldgs. 2 & 3, Hillside
SEP 2019 388,222 $14,000,000 $36 12' 1967 / 1997 BLandone Corporation / AMERCO Real Estate Company
100% leased, 14 docks, 80 drive-ins, 6 elevators, wet sprinklers, 100 car parking
970 New Brunswick Ave., Rahway
SEP 2019 297,000 $19,500,000 $66 14' - 18' 1932 BRahway Industrial Sites / Herald Realty Management, LLC
6% cap rate, 94% leased, 20 docks, 2 drive-ins, 50 car parking, wet sprinklers
1-11 Market St., Passaic SEP 2019 250,000 $12,350,000 $49 N / A N / A C Ethan Allen Interiors, Inc. / Sun Equity Partners Redevelopment project
99 & 111 Amor Ave., Carlstadt SEP 2019 175,300 $25,200,000 $144 16' - 21' 1970 C Asha44, LLC / Clarion Partners 14k SF office, 14 docks, wet prinklers, 197 car parking
601 W Linden Ave., Linden JUL 2019 162,782 $12,100,000 $74 14' - 18' 1958 C National Better Bags, Inc. / RHS Realty Group5k SF office, 36 docks, 1 drive-in, 100 trailer parking, 1 freight elevator, dry sprinklers, cross-docks
5 & 8 Commerce Way, Hamilton JUL 2019 109,400 $19,500,000 $178 20' 1984 / 2008 B Thompson Management Co. / JBM EstatesFlex portfolio sale, 98% leased, 14 docks, 3 drive-ins, 372 car parking, 82k Sf office, ESFR sprinklers
190 Jony Dr., Carlstadt SEP 2019 102,611 $15,000,000 $146 23' 1969 / 2000 B Verbena Road Holdings Ltd. / Cabot Properties, Inc.6.1% cap rate, 100% leased, wet sprinklers, 6 docks, 3 drive-ins, cross docks, 38k SF office, 140 car parking
2121 State Route 27 S, Bldg. 2, Edison
AUG 2019 99,260 $21,905,655 $221 12' 1984 CAngelo, Gordon & Co. / Broadstone Real Estate, LLC
Flex, 3-stories, 100% leased, 300 car parking
600 Guyon Dr., Harrison SEP 2019 48,500 $13,000,000 $268 23' 2013 BAR Global Investments, LLC / J. Supor & Son Trucking & Rigging Co.
Flex,16k SF office, 20k SF lab, 100% sub-leased through 2028, wet sprinklers, 60 car parking, 4 docks
333 Cantor Ave., Linden SEP 2019 42,788 $6,000,000 $140 14' 1980 CLongpoint Realty Partners / Around The World Logistics
Owner-user sale, 15 docks, 2 drive-ins, wet sprinklers, 2k SF office
WEIGHTED AVERAGE: 167,586 $15,855,566 $95 16' 1973 / 2002 - - -
I-95 NJ TURNPIKE CORRIDOR Q3 2019 NOTABLE INDUSTRIAL SALES
Licensed Real Estate Broker Follow us!
669 River Drive, Suite 201 | Elmwood Park, NJ 07407 | 973.337.1144 • 110 Fieldcrest Avenue, Suite 5 | Edison, NJ 08817 | 732.452.0750 • lee-associates.com/newjersey
I-95 / NJ TURNPIKE CORRIDORQ3 2019 INDUSTRIAL MARKET SNAPSHOT
page 9
Source: CoStar, Real Capital Analytics and Reis. All Information is from a source deemed reliable, however no representation, expressed or implied is made as to the accuracy of the information contained herein, and same is submitted subject to errors, omission, change of price, rental or other conditions imposed by our principals.
Rick Marchisio | Principal/PresidentD: 973.475.7055 • C: 908.930.7306rick.marchisio@lee-associates.com
Crista Governara | Vice PresidentD: 732.204.1121 • C: 973.868.4949cgovernara@lee-associates.com
Drew Maffey | Assistant Vice PresidentD: 973.406.2493 • C: 908.217.9746drew.maffey@lee-associates.com
Compiled by Lee & Associates New Jersey. Methodology: Inventory includes all existing, under-construction and under-renovation Class A, B and C industrial and fl ex properties. *All vacancy and rent metrics are direct and do not include sublet market data. All Informationis from a source deemed reliable, however no representation, expressed or implied is made as to the accuracy of the information contained herein, and same is submitted subject to errors, omission, change of price, rental or other conditions imposed by our principals.
LEE & ASSOCIATES - NEW JERSEYis part of the 60 offi ce Lee National network
$15+BILLIONTRANSACTION VOLUME (2018)
1000+BROKERS AND GROWINGNATIONWIDE
1stPRIVATE
BROKERAGE FIRMIN UNITED STATES
91%INCREASE
TRANSACTION VOLUME OVER 5 YEARS
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