MarketWatch
Office | Industrial
CONSOLIDATIONS OUTPACE DEMAND
top DEALS
The market in brief: Industrial availability in North and Central New Jersey has eclipsed
the benchmark 10% mark, according to data from Grubb & Ellis. After posting more
than 3. 1 million square feet of negative net absorption during Q2 of this year in the
face of moderating demand and a slew of consolidations, the market remained unsteady
three months later, at the end of Q3, with another 2. 3 million square feet of negative
net absorption recorded.
Indeed, according to Grubb & Ellis, the North/Central Jersey industrial market
hadn’t reported back-to-back quarterly negative net absorption since 2002.
A common theme during the two quarters, Grubb & Ellis reports, has been that any
increase in leasing velocity has often been countered by additional consolidations and
restructurings, with additional supply released onto the market in the process.
Altogether, 13 out of 24 northern and central industrial submarkets in the state posted
negative figures in Q3. A year earlier, 13 of 24 posted positive numbers.
And a total of nearly 66 million square feet of direct and sublet space was on the
market in the region during Q3, compared with less than 63 million square feet
marketed in mid-2008. The region’s overall industrial availability climbed from 9.8%
at mid-year to more than 10% in Q3. The overall industrial availability rate is currently
at its highest level in more than a decade.
GENESIS LOGISTICS
LEASES 60,000 SF
Genesis Logistics has leased 60,000 square
feet within KOR Cos.’ Central Crossings Business Park at 300A Bordentown Hedding Rd.
in Bordentown. The signing represents half of
an under-construction spec industrial building, the second to rise in the park.
The deal was brokered for Wall-based KOR
by Noah Balanoff, Stan Danzig and Jules Nis-sim of Cushman & Wakefield, and Steve Tol-kach of Newmark Knight Frank. Frank
Caccavo, Jason Goldman and Andrew Siem-
NORTH JERSEY BY THE NUMBERS
Submarket
Asking Rent
Total SF Available SF Available Gen & W/D R&D/Flex
Central Crossing
Central Bergen-East
Central Bergen-West
Hudson Waterfront
Meadowlands
Morris East
Morris West
Newark Region
Northern Bergen
Passaic/I-80/Rte. 3
West Essex
14. 3 M
16. 4 M
29. 9 M
78.3 M
25. 5 M
16. 8 M
64.1 M
17. 4 M
54.3 M
19. 9 M
.94 M
1. 9 M
2. 4 M
8. 1 M
2. 3 M
2. 1 M
3. 3 M
1. 5 M
3. 9 M
1. 3 M
6.6%
11.6%
8.1%
10.3%
8.9%
12.8%
5.1%
8.3%
7.2%
6.3%
$6.80
$5.69
$5.67
$6.97
$6.83
$6.26
$5.21
$6.65
$6.55
$7.63
$15.59
$7.43
-
$10.65
$10.77
9.89
-
$12.29
$11.00
$12.75
(Source: Grubb & Ellis)
sen of C&W spoke for Genesis Logistics.
Genesis’ new location was completed recently on spec and includes 20,000 square
feet of cold storage and 3,000 square feet of
offices. KOR has full approvals for a twin,
120,000-square-foot building next door.
“KOR originally planned to build one larger
building, but changed its plans after seeing
leasing activity at Central Crossings’ first
building,” Balanoff says. That initial building
was completed in 2006 and signed tenants
were Blue Tulip, Garden State Portable
Storage and Frank Wood Transportation.
Long-term plans for the 170-acre Central
Crossings call for upwards of 2. 3 million
square feet. KOR controls half of that development potential, with Rockefeller Group
Development Corp. and IDI splitting the rest.
