Centrally located along the East Coast, New Jersey is the most densely-populated state and boasts the largest warehouse and distribution market as well as 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.
The commercial real estate market in northern and central New Jersey consists of more than 1.5 billion square feet of office, industrial and retail product. Geographically, the market encompasses Princeton to the southwest, Monmouth and Ocean counties along the New Jersey shoreline to the southeast, northbound up the Garden State Parkway, the New Jersey Turnpike and Interstate 287 through Bergen and Passaic Counties.
The Northern New Jersey office market consists of over 355 million square feet (msf) of inventory. Avison Young measures the competitive office market to be 210 million of class A and B inventory. Several suburban office parks are scattered throughout the region while skyscrapers are more prevalent in state’s most populated cities: Newark and Jersey City. New Jersey has perhaps the country’s most diverse tenant base as failure of no one single industry can have a major effect on the region’s economy. The office market is highlighted by industries including life science (the state is often called “The Medicine Chest”), financial and information technology. There are 21 Fortune 500 companies headquartered in the state, while many international companies have a significant presence just west of New York City along the Hudson County Waterfront.
Due to a highly motivated, diverse population with a high per-capita income, consumer spending is always high in New Jersey. As a result, the state is an essential market for every retailer. In total, more than 350 msf of retail real estate is developed in New Jersey. More than half of that inventory is general retail, with additional 25 percent of shopping centers. Malls compose an additional 10 percent of the retail population. While not large in total area, New Jersey has more malls per square mile than any other state. Power centers and specialty centers comprise the remainder of the retail infrastructure in New Jersey.
With unmatched access to air and sea ports, rail and a tremendous highway network, 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 and along the eastern seaboard. Furthermore, it is the third largest industrial market in the United States, encompassing 750 msf of warehouse, distribution and manufacturing space and an additional 50 msf of commercial flex inventory. Port Newark is the third largest port in the United States when measured by container traffic, offering unprecedented access to international markets and cargo. Additionally, New Jersey benefits from being centrally located between New York and Philadelphia, as well as being equally distant from Boston and Washington D.C. on a larger scale, giving it access to the most dense, affluent population in the country.
During the first six months of 2013, New Jersey experienced consistent job growth throughout most employment sectors. Moreover, payrolls have also increased steadily as the average weekly wage for the private sector is one of the fastest growing in the country, increasing by 2.2% from March 2012 to March 2013. These improving economic conditions have attracted buyers to the region. As a result, when comparing the first half of 2013 with the first six months of 2012, overall sales volume is higher by 46%, improving in three of the four major property sectors (office, industrial and multi-residential).
In October of 2012 Avison Young established its first New Jersey office, further expanding the company’s US growth in commercial real estate services. The Morristown, NJ-based office is staffed with experienced professionals providing superior corporate real estate service in the disciplines of brokerage, property management, project management, construction management, capital markets, development consulting, marketing , market research, valuation advisory, incentives and debt equity to a client base of corporate and institutional owners and occupiers. Avison Young’s New Jersey team has rapidly grown to more than 80 professionals, providing an extensive best-in-class service platform ensuring successful outcomes for every assignment.