Sitex Group, a dominant force in New Jersey’s industrial real estate market, has expanded its “hyper-infill” portfolio with the acquisition of 152 West Street. The 4.1-acre property, formerly an insurance claims center for Progressive Casualty Insurance, is set to be transformed into a modern Industrial Outdoor Storage (IOS) facility—a rapidly growing asset class in the Garden State.
The deal marks the second time Sitex has acquired a Progressive-owned asset, following a similar transaction in Rutherford. Positioned directly off Exit 4 of Interstate 287, the site offers high visibility and immediate access to one of the region’s most critical logistics corridors.
Industrial Outdoor Storage (IOS), also known as “low-coverage” industrial, has moved from a niche market into a core institutional asset. These facilities prioritize land area over building square footage, providing essential staging for the “last-mile” economy.
Market data from early 2026 highlights the surging demand for these sites:
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Scarcity: In Northern and Central NJ, land zoned for outdoor storage is at an all-time low, with vacancy rates for premium IOS sites hovering below 3.5%.
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Rent growth: IOS rents in the NY/NJ metro area have increased by over 100% since 2020, significantly outpacing traditional warehouse rent hikes.
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E-commercepressure: As 3PL (third-party logistics) firms expand, the need for “drop lots” and fleet parking has become the backbone of the supply chain.
The 22,000-square-foot building on the site will be repurposed to anchor the 4.1-acre lot. Sitex worked closely with South Plainfield officials to expand the list of permitted uses for the property, ensuring it meets the specific needs of modern fleet operators.
Key features of the revitalized site:
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Low coverage ratio: High land-to-building ratio allowing for massive vehicle staging.
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Modernized flex space: Three overhead doors for maintenance or light distribution.
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Fleet readiness: Secured yard space designed for heavy-duty trailers and equipment.
“Properties like 152 West Street are increasingly scarce,” Blake Chroman, a principal at Sitex Group said. “This site fits exceptionally well within our portfolio… we see a clear opportunity to reposition it for modern industrial demand.”
The South Plainfield acquisition is part of an aggressive 2026 expansion for Sitex. Just last month, the firm acquired a 26,000-square-foot facility in Monroe near Turnpike Exit 8A, further cementing its grip on the state’s premier logistics hubs.
“We look forward to making further investments in South Plainfield as we execute our plan for the property,” Max Fuchsman, vice president at Sitex Group said.
