4A — July 2024 — Brokerage Directory — M id A tlantic Real Estate Journal
www.marej.com
B rokerage D irectory
NAI DiLeo-Bram & Co. Leasing activity holds steady for industrial and retail across Northern/Central New Jersey
tivity across the Northern/ Central New Jersey mar- ket relative to recent years, NAI DiLeo- Bram & Co. (NAIDB) is reporting W
have ceased across each of these property types, limiting supply-side pressure during the near term. According to the NAIDB 2024 Spring Market Review, sourced by NAIDB Research, the direct- vacancy rate for industrial and retail is hovering just under 5% (4.9% and 4.8%, respectively). While the office market has seen increased leasing activity during the spring, the area’s negative absorption numbers illustrate that more space is being vacated than leased year- after-year. “Northern and Central New
Jersey’s industrial and retail sectors benefit as a result of the state’s high median incomes, educated workforce and strong consumer-spending numbers,” said NAIDB COO David A. Simon, SIOR . NAIDB’s Market Review fo- cuses exclusively on Northern and Central New Jersey across the seven counties in which the firm is most active. These include Morris, Essex, Union, Middlesex, Somerset, Mercer and Hunterdon. In the market report, NAIDB details the following for the industrial, office and retail sec -
tors in Northern and Central New Jersey: Industrial: This property category’s fundamentals remain healthy despite a retraction from the explosive pandem- ic-demand environment and tapering rent-growth funda- mentals. Average asking rents were $13.62/s/f [as of May 2024]. This is a slight decrease from the average rental rate of $13.72 in 2023, and the first decrease observed in the past 5 years. What does this mean?: This may signal the scales are start- ing to tip in the tenants’ favor.
Office: This sector has re- corded relatively consistent leasing activity throughout Spring, 2024 across the seven counties analyzed by NAIDB. Through May, 438 leases have been signed totaling 2.13M s/f. Rent growth continues to be positive with class A and class B buildings command- ing $27.72/s/f and $22.19/s/f, respectively. While leasing activity is occurring, net ab- sorption continues to be nega- tive (-656K YTD), with vacated space outpacing leased space – a consistent trend each year starting in 2020. What does this mean?: The limited supply of new office projects should curb supply- side risk for some time, giving existing projects time to lease or be repurposed for new uses. Retail: Northern/Central New Jersey continues to be a healthy environment for exist- ing retail to thrive and new retail concepts to expand. With 230 new leases being signed across the region between January and May, 2024, the market’s overall asking rents are holding near $21/s/f on a NNN basis. What does this mean?: Northern/Central New Jersey continue to be a good bet for re- tailers looking for a six-figure, affluent customer base with disposable income. Based in Woodbridge, NJ, NAIDB is a member of NAI Global , a leading global com- mercial real estate advisor with 325+ offices and 5,800 professionals. NAI Global completes in excess of $20B in worldwide commercial real estate transactions annually. Leveraging the powerful sup- port of the NAI Global plat- form, NAIDB offers a full suite of commercial real estate ser- vices backed by the personal- ized service and knowledge of a local firm with the resources of a global company. MAREJ advancements, sustainabil- ity imperatives, and changing methodologies. Embracing these trends not only enhanc- es project outcomes but also positions teams to meet the challenges and opportunities of a dynamic and competitive industry landscape. Frank Gallagher is the resident of The The FGX Group, LLC. MAREJ The project mgmt. . . continued from page 2A
OODBRIDGE, NJ — Thanks to strong leasing ac-
David A. Simon
market resiliency bolstered by industrial and retail leasing activity as well as rents that are holding steady. Furthermore, new project groundbreakings
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