Northern New Jersey Industrial Market Report

Eastern Seaboard’s busiest harbor benefits from logistics hurdles on the West Coast. Traditionally the nation’s third-most active maritime hub by throughput, the Port of New York and New Jersey edged out its Southern California counterparts as the busiest node from August to December of last year, as labor negotiations suppressed activity at these western entry points. Though the New York and New Jersey port has fallen in the rankings as of early 2023, this event has further highlighted the importance of diversified supply chains. The harbor may receive additional shipping routes in the future as a result, and some logistics firms have already relocated operations to a the Northeast. This year, solid demand for distribution space in Northern New Jersey will keep vacancy in the sub-3 percent zone, even as developers achieve an annual construction record. Additionally, moving forward, the dense nature of the market should preclude developers from expanding supply at a pace much more rapid than this year’s rate of 1.4 percent. This should keep availability well under the historical average for the foreseeable future.