A report by Colliers International says New Jersey registered 8.6 million square feet of industrial leasing activity during the second quarter of 2018 — down from 10.6 million in the previous period as a lack of available space slowed leasing activity. The quarterly report showed office leasing during the past three months rising by 31 percent.
A 449,880-square-foot lease by Clutter at 1065 Cranbury South River Road in South Brunswick led the second-quarter activity, followed by a renewal for 371,995 square feet by LA Enterprises at 1 Costco Way in Monroe Township and a 318,389-square-foot sale-leaseback by Freeze at 473 Ridge Road in Monmouth Junction.
“During the first half of the year, ongoing demand for strategic distribution locations helped drive rental rates to historically high levels,” said David A. Simon, executive managing director and New Jersey market leader for Colliers. “Our research revealed a decline in leasing activity during the past quarter; however, the reason for the decline was only based on the fact that there is not enough space to accommodate the demand.”
The report said that during the second quarter, 13 new buildings totaling 5.4 million square feet were delivered, 75 percent of which had pre-lease commitments. Even with the wave of new deliveries, the availability rate remained flat, closing at 5 percent and helping to spur a 9.3 percent rise in asking rates from last year, to $7.62 per square foot.