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By Brian Banaszynski

Development pipeline struggles to satisfy Northeast’s demand for industrial product


Developers managed to deliver enough new space to move the needle on New Jersey’s industrial vacancy up one-tenth of 1 percentage point in the first quarter. But at 3.8% vacancy – down from 4.1% a year earlier – some tenants are leasing space even before construction begins. Witness the quarter’s two largest leases, both in the Exit 8A submarket in Middlesex County, where e-commerce furniture company Wayfair signed a lease of 953,595 s/f and, upon delivery, will occupy more than 3 million s/f in Cranbury. In the same development, Crate & Barrel agreed to lease 870,950 s/f, a likely consolidation of its existing footprint. Both leases were in planned, unbuilt product.

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