Speculative development indicates industrial market rebound is underway in New Jersey, according to Cassidy Turley

Speculative development of industrial facilities is returning in Central and Northern New Jersey, indicating that the market is beginning to recover, according to recently released second quarter Industrial Market Snapshot from Cassidy Turley, a leading commercial real estate services provider in the U.S. "This activity serves as a positive leading indicator that the market is strengthening and poised to accelerate with the Port and submarkets along the Turnpike being the most popular areas in Central New Jersey," said Raymond Trevisan, Managing Principal of New Jersey for Cassidy Turley. "Developers are anticipating there will be demand for this additional space and that modern properties with the most efficient building systems will be sought after. Additionally, we expect demand for U.S. exports will fuel expansion and create jobs and the completion of the Bayonne Bridge raising project will provide a boost to the area, increasing the percentage of goods coming through the ports." Proposed development projects in Northern New Jersey include: * A 916,400 s/f class A distribution center at 1016 West Edgar Rd. in Linden. * An 878,564 s/f site at 219-295 Route 1 & 9 in Jersey City. * 705,000 s/f at 429 Delancy St. in Newark. * 628,000 s/f on County Rd. in Jersey City that is pre-leased to Goya Foods. A class A industrial building totaling180,000 square feet, fully leased to Wakefern, is currently under construction in Newark, while two other buildings were delivered during the second quarter: the 243,750 s/f 1 North Enterprise Ave. in Secaucus and a 152,488 s/f building at 731 Dowd Ave. in Elizabeth. In Central New Jersey, the second quarter saw increased momentum with more than 2.3 million square feet of positive net absorption. The vacancy rate decreased to 8 % from 8.9%in the first quarter, bringing vacancy levels below the 10-year historical average of 8.3%. With tightening availabilities, the average asking rent in Central New Jersey has stabilized at $4.24 per s/f. More modest results were reported in Northern New Jersey with 182,609 s/f of positive net absorption in the second quarter and a flat vacancy rate of 7.7%, which has been the same rate for the past year. Average asking rents remained relatively unchanged with a $0.03 increase to $5.63 from $5.60 per /f. "Vacancies in Central New Jersey are now at pre-recession levels and the Turnpike corridor continues to experience strong and consistent leasing activity," said Doug Bansbach, senior vice president for Cassidy Turley. "The market has become more competitive with active investor interest. The waiting game is over and investors are ready to make deals as long as market fundamentals remain strong and demand in the market remains high. Value pricing and the low-interest rate environment are also fueling demand." In the second quarter, the Exit 7A submarket recorded 1.35 million s/f of positive absorption and the vacancy rate has significantly dropped to 17.1% from 27.3% in the previous quarter. Vacancies are now at a level that has not been reported since the fourth quarter of 2006. The report also noted that the Northern New Jersey market is picking up with slow growth anticipated into 2013.The completion of the Bayonne Bridge raising project will also provide a boost to the port areas as an estimated 12 to 15% increase of goods will be coming through the ports, according to the Port Authority. Noteworthy industrial transactions during the second quarter included: Kenco, which leased 400,714 s/f at 100 West Manor Way in the Exit 7A submarket. Fab.com, which will occupy 228,500 s/f at 1000 Industrial Ave., near Exit 10. In Northern New Jersey, the largest lease was a 163,000 s/f deal signed at 200 Hollister Rd. in the Meadowlands submarket. The tenant was not disclosed. Additionally, FedEx signed a 152,488 s/f deal at 731 Dowd Ave. On the investment front, CalEast Industrial Investors purchased the 256,125 s/f 377 Roosevelt Ave. in the Exit 12 submarket for $29.7 million. Also, Griffin Capital Net Least REIT, Inc. acquired 110 Algonquin Parkway, a 114,265 s/f site in the Eastern Morris submarket, for $13 million. About Cassidy Turley Cassidy Turley is a leading commercial real estate services provider with more than 3,600 professionals in more than 60 offices nationwide. The company represents a wide range of clients--from small businesses to Fortune 500 companies, from local non-profits to major institutions. The firm completed transactions valued at $18 billion in 2010, manages 455 million square feet on behalf of private, institutional and corporate clients and supports more than 25,000 domestic corporate services locations. Cassidy Turley serves owners, investors and occupiers with a full spectrum of integrated commercial real estate services--including capital markets, tenant representation, corporate services, project leasing, property management, project and development services, and research and consulting. Cassidy Turley enhances its global service delivery outside of North America through a partnership with GVA, giving clients access to commercial real estate professionals in 65 international markets. Please visit www.cassidyturley.com for more information about Cassidy Turley.