Northern New Jersey’s industrial real estate market continues to demonstrate long-term strength as large-scale users and logistics firms drive consistent demand for high-quality Class-A space, according to the 2Q 2026 Industrial Report released by NAI James E. Hanson.
While the overall market vacancy rate edged up to 7.1%, it remains significantly below the national average. The report highlights that the region’s largest tenants—particularly third-party logistics (3PL) providers—are prioritizing facilities with high ceilings and strategic locations, keeping high-end product in short supply.
Market activity and rents
Year-to-date leasing volume has reached 14 million square feet, underscored by 12 major transactions exceeding 300,000 square feet each. While asking rents saw sharp spikes in previous years, the market is beginning to stabilize. Currently, Class-A space averages $16.25 per square foot, with the overall market average holding at $13.87 per square foot.
“Even with vacancy ticking up in pockets of the market, the underlying fundamentals in Northern New Jersey remain strong,” James Delmonte, vice president and director of research at NAI James E. Hanson, said. “Large users continue to compete for well-located, high-quality space, and with new construction slowing, that demand should keep the market well-positioned even as it continues to normalize from the historic lows we saw during the pandemic.”
New construction deliveries have slowed to 3.9 million square feet through the first half of 2026, compared to 4.6 million square feet during the same period in 2025. Currently, 7.6 million square feet remain under construction with completion expected by year-end.
Submarket highlights
Performance varied across key industrial corridors, with tight vacancy rates defining the most active areas:
- The Meadowlands: Remained highly stable with a 6.0% vacancy rate and average asking rents rebounding to $16.24 per square foot—some of the highest in the region.
- The Ports: Maintained a 6.6% vacancy rate. With a limited construction pipeline, this submarket is expected to tighten further. Class-A rents here command a nearly $8.00 per square foot premium over the broader market.
- Exit 10/12: Vacancy declined to 6.4% year-over-year, bolstered by a significant 800,000-square-foot lease signed by GoFo, Inc. in Perth Amboy.
- Exit 8A: Experienced a surge in activity, including a 600,000-square-foot lease signed by DSV in Monroe, though vacancy rose to 7.5%.
- 46/23/3 Corridor: Continued its consistent performance, maintaining a vacancy rate below 6.0% for the third consecutive year.
