M id A tlantic Real Estate Journal — Spring Preview — April 2025 — 7A
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By Jonathan Glick and Josh Glussky, Sheldon Gross Realty New Jersey’s Warehousing Market: Current Trends and Insights
N
ew Jersey’s warehous - ing market – it’s nev - er, ever dull. If you’re
versus actual offers has been decidedly skewed. This discrep - ancy is primarily attributable to the after- math of the recent elec- tions and on- going uncer- tainty related to tariffs and global trade policies. Once these factors stabilize, expect demand for larger spaces to rise. A significant challenge – and one that won’t be solved by a recovery of overall demand – is the oversupply of class A Josh Glussky
warehouse space. To stay com - petitive, owners are offering substantial rent concessions and tenant improvements as they attempt to meet their ask- ing rental rates. This dynamic is further complicated by older properties, on which rental rates have been slashed by about 10 to 15%. Sales Demand for warehouse space on the sales side con- tinues to be strong across all size ranges, though supply is quite limited. Prices are remaining firm, and many transactions are closing near or even at replacement value.
We’re consistently seeing sell - ers willing to hold out for closer alignment with their asking price … and for the most part, this is proving to be an effective strategy. Office Space With office space, sales and leasing transactions continue to be few and far between. There’s simply little growth in the sector – in fact, there’s been a noticeable slowdown. Demand is stagnant. Industrial Outside Storage In recent years, the single most significant shift in the warehousing market has been the rise of IOS. This sector is
currently performing robustly, particularly with sales. This is particularly true with properties that offer the right zoning, par - cel configuration, and access to major trucking routes. However, leasing IOS spaces has become more challenging – even more so with large sites for which secur- ing financially stable tenants is difficult. Still, rental prices for IOS properties continue to be strong and should retain their value in the near term. Jonathan Glick is execu - tive VP and Josh Glussky is corporate sales repre- sentative at Sheldon Gross Realty. MAREJ
Services, Inc. (ICS). The lawsuit was dismissed, with judgment entered in favor of Travelers, af - ter ICS agreed to allow the court to issue a judgment rescinding the policy. In other words, ICS ended up with no cyber insurance policy and 100% on the hook to pay ev - ery cost associated with recovery from their ransomware attack. All because they allegedly “materially misrepresented” the extent to which they had implemented multi-factor au- thentication. Inviting Reflection and Action As you consider your cyber in - surance status and the need to not only remain compliant but also demonstrate compliance, consider aligning your business with an external third party. Such a relationship can help you navigate the increasingly complex waters and be an asset to you should you ever have a challenge to your insurability. One thing is for certain: the steps needed to obtain a cyber insurance policy and maintain a cyber insurance policy are not going to get any easier. Michael Mullin is presi- dent Integrated Business Systems, Inc. MAREJ continued from page 5A A cyber insurance true story . . . With larger spaces, however, there’s a different trend. Supply is ahead of demand, and the number of property showings searching for a word to describe it, “dynamic” is probably accurate, whether we’re talking about sales, leasing, or even the growing demand for industrial outside storage (IOS). Here’s a look at how we view the current warehousing mar- ket, divided into four sectors. Leasing With warehouse leasing, we’ve observed some interest - ing shifts, with particular em- phasis on private owners. For small bay, industrial spaces (1,500 to 20,000 s/f), demand is outpacing supply. And while rental rates have stabilized, tenants are still benefiting from incentives like free rent and tenant improvements. Jonathan Glick
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