New Jersey’s vital logistics hubs in Burlington County and Southern New Jersey exhibited solid resilience and progressive inventory absorption through the second quarter of 2026, mirroring the broader Philadelphia Super Region’s stabilizing industrial fundamentals.
According to data from Colliers’ Q2 2026 Industrial Big Box Report, the wider bi-state super region—which spans 436.32 million square feet across eight core submarkets and provides access to over 58 million people—benefited from a strategic slowdown in speculative construction and steady tenant demand.
Burlington County maintains ultra-tight market position
Burlington County posted another standout quarter, seeing its vacancy rate compress significantly to a tight 3.27%.
The submarket recorded more than 1.0 million square feet of leasing activity, while positive net absorption surpassed 590,000 square feet, continuing to draw down available inventory. With zero new construction starts or completions during the quarter, the active pipeline dropped to 778,000 square feet. Driven by strong tenant competition and limited availability of modern Class A product, average asking rents in Burlington County rose to $13.74 per square foot.
Southern N.J. progresses through speculative inventory
South Southern New Jersey (Tri-County) also demonstrated meaningful progress during Q2 2026 as overall market conditions stabilized following previous quarters of elevated vacancy.
The submarket registered roughly 347,000 square feet of occupier transactions alongside nearly 938,000 square feet of positive net absorption, proving the region’s effectiveness in absorbing previously delivered speculative space. Development activity remained measured, with just 190,516 square feet of new construction breaking ground. Average asking rents settled at $12.34 per square foot.
Across the entire Philadelphia Super Region—supported by multi-modal access spanning the Port of NY-NJ, the Port of Philadelphia-South Jersey, major freight rail lines, and core corridors like the New Jersey Turnpike—moderating construction starts and healthy occupier demand are setting the stage for a balanced development environment heading into the second half of the year.
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