New Jersey
Mailing Address
West Tower, 4th Floor
Area Overview
Centrally located along the East Coast, New Jersey is the most densely-populated state and boasts the largest warehouse and distribution market (and one of the largest office markets) in the country. The Port of New York and New Jersey is the third largest port market in the U.S. and is the driver of significant space demand throughout the Garden State. Known for its concentration of pharmaceutical giants, as well as its role as an important secondary market for New York City’s financial sector, New Jersey offers extensive highway infrastructure and one of the mostly highly-trained workforces in the U.S.
Markets
Office
The Northern New Jersey office market consists of over 350 million square feet (msf) of space. The market stretches from Princeton to the south and Orange and Rockland Counties in New York to the north. The office market is very diverse and contains many office parks along with several skyscrapers in Jersey City, just across the Hudson River from Manhattan. The diversity of product lends itself to a variety of tenants. Several companies are located in office campuses across the state while many international companies have a significant presence just west of New York City along the Hudson County Waterfront.
Retail
Since the Northern New Jersey market covers such a large geography, every type of retail property exists. From power, specialty and shopping centers to malls, general retail and big box stores, Northern New Jersey is an essential market for every retailer.
Industrial
With unmatched access to air and sea ports, the Tri-State region is one of the largest industrial markets in the United States. Northern New Jersey is the largest industrial market in the region with over 225 msf of warehouse, distribution and manufacturing space. Both JFK and Newark Airports offer unprecedented access to international markets and cargo.
Investment
Total office building sales activity is down in 2012 from levels reached in 2011. Through third quarter nearly $600 million of product sold, compared to over $790 million at the same time last year while cap rates have remained between 7.2% and 7.8% over the last eight quarters. Supply and demand continue to be out of balance. Owners, especially long-term ones, are loathe to selling when there is nowhere to reinvest the windfall gains— despite the looming chance that capital gains will be heading higher.
