NAI DiLeo-Bram & Co. on Thursday announced the successful negotiation of two industrial lease agreements totaling 14,000 square feet, signaling a tightening market for mid-sized “flex” space in the Central New Jersey corridor.
The transactions, brokered by NAIDB Vice Presidents Kyle Gerace and Christopher Chiusolo, reflect a growing trend of regional businesses prioritizing high-connectivity locations over the premium-priced hubs directly adjacent to the New Jersey and New York
As of late 2025, the New Jersey industrial market has shown signs of stabilization, with vacancy rates holding steady at approximately 7.2%. While the “big-box” warehouse segment has seen a surge in supply, the demand for units between 5,000 and 15,000 square feet remains fierce.
“For many companies, proximity to major highway networks is non-negotiable,” Gerace said. “Locations like Marlboro and Somerset offer the necessary regional access without the ultra-premium rents found at the ports. We are seeing tenants compete assertively for functional, well-maintained space.”
Transaction Highlights
| Tenant | Location | Square Footage | Key Property Features |
| Enviro Service & Supply Corp. | 4 Timber Lane, Marlboro | 9,000 SF | 18’ clear heights, loading docks, drive-in capabilities. |
| G&J Steel & Tubing Inc. | 14 Worlds Fair Drive, Somerset | 5,000 SF | T-5 lighting, wet sprinkler systems, 18’ clear heights. |
The 9,000-square-foot lease at 4 Timber Lane was secured for Enviro Service & Supply Corp., a firm specializing in commercial refrigeration and HVAC solutions. The building’s access to Route 18, Route 9, and the Garden State Parkway provides a critical logistics advantage for service-based businesses requiring rapid regional dispatch.
In Somerset, G&J Steel & Tubing Inc.—a custom manufacturer of tubular assemblies for industries ranging from aerospace to medical—will occupy 5,000 square feet within the Worlds Fair Corporate Center. This location offers immediate access to I-287 and the New Jersey Turnpike, positioning the manufacturer at a major distribution crossroads.
Business demand for “last mile” logistics and light manufacturing remains the primary driver of the Central Jersey market. Experts note that while average NNN asking rents have moderated slightly from the record highs of 2023, the convergence of Class B and C rents—now averaging in the mid-$13 range—indicates that functional inventory is becoming increasingly scarce.
“Even at the smaller end of the spectrum, tenants demand functional clear heights, efficient loading, and professional park management,” Chiusolo said.
With the development pipeline for small-to-mid-sized industrial properties remaining limited, market analysts expect vacancy rates in these submarkets to continue to outperform the broader regional average through early 2026.
