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“Land suitable for industrial development at Exit 8A is nearly exhausted, making premium assets like the Wheeling Road property even more desirable to companies that need to be near the port and the densely populated Central and Northern New Jersey consumer bases."
- David Nenner, Senior Vice President of Asset Management in the East Region
Read an excerpt from the article “Industrial Sector Drives CRE Market.” about why the New Jersey industrial real estate market continues to surge nearly three years since the wave of e-commerce first swelled.
Without question, COVID-19 “accelerated the shift” to e-commerce (buying methods) by years in a matter of months.
Estimates now being tallied indicate that the pandemic added $219 billion to US e-commerce sales between 2020 and 2021 alone. Many reports indicate that this consumer shift to digital purchasing will remain in place.
Economists also say those working from home are shopping online with more frequency as well, creating more and more of a geographical challenge in terms of how and – more importantly – where to procure, stock, deliver and restock items in an efficient manner.
These challenges are creating a thriving industrial real estate market in New Jersey not seen in decades.
Luckily, New Jersey has a top pool of commercial real estate experts to meet these industrial real estate challenges head-on by monitoring the market and advising their clients when and where to reposition existing space, and (or) where to build new and much-needed industrial logistics facilities and warehouse space, and how to overcome the many hurdles associated with the processes.
“Given strong demand and tight supply, we are now seeing a surge in new construction activity, increasing by 16% (quarter-over-quarter) to 15.4 million square feet as of Q1 2022,” says Thomas Monahan, a CBRE vice chairman. It is predicted that this number will quickly and steadily rise as the uptick in consumer demand drives the market moving forward.
A shining example, as it relates to new construction of industrial hubs is CT Realty’s joint venture with PGIM Real Estate (the real estate investment and financing business of PGIM, the $1.5 trillion global asset management business of Prudential Financial), and their recent acquisition of 282 acres of industrial land for the development of Garden State Logistics Park, a 1.7 million-square-foot, state-of-the-art logistics center in Pennsville.
“This is an exceptionally rare opportunity to assemble a critical mass of land and create a top-flight logistics project in the second largest industrial market in the country,” says Rob Huthnance, who oversees CT Realty’s development activity in the Eastern United States.
The reach (to consumers) from this strategically placed hub is, in a word, impressive. “This project is at the gateway to Southern New Jersey and will serve as a distribution hub for the entire Northeast, able to serve 66 million consumers in a single day’s truck drive,” Huthnance says.
In another highly sought-after location, CenterPoint Properties has acquired a low-coverage industrial facility in the premier Exit 8A submarket at 6 Wheeling Road in Dayton. The 198,000-square-foot Class A building covers just 28% of the nearly 14-acre property, leaving room for expansion.
“This investment continues our momentum in 8A of acquiring institutional-quality, low-coverage assets right off the Turnpike,” says CenterPoint Investment Officer Bryan Won. “6 Wheeling is a well-located Class A asset with superior parking that will stand the test of time in a white-hot 8A submarket.”
The warehouse features 31-foot clear-height ceilings and has a separate two-acre parking grid. It is only “four turns” from the New Jersey Turnpike for efficient trips to Port Newark-Elizabeth and New York City.
“Land suitable for industrial development at Exit 8A is nearly exhausted, making premium assets like the Wheeling Road property even more desirable to companies that need to be near the port and the densely populated Central and Northern New Jersey consumer bases,” says David Nenner, CenterPoint’s senior vice president of asset management.
Unparalleled demand for space and storage in densely populated New Jersey has suppressed industrial vacancy rates. In one stunning example, the Exit 8A submarket vacancy rate is down to just 1%. According to industry analysts, rents for Class A product in the Northern New Jersey market are approaching 30% year-over-year gains.
About CenterPoint Properties
CenterPoint is an industrial real estate company made up of dedicated thinkers, innovators and leaders with the creativity and know-how to tackle the industry’s toughest challenges. And it’s those kinds of problems — the delicate, the complex, the seemingly impossible — that we relish most. Because with an agile team, substantial access to capital and industry-leading expertise, those are exactly the kinds of problems we’re built to solve. For more information on CenterPoint Properties, follow us on LinkedIn. For all media inquiries, including requests for interviews with CenterPoint executives, please contact media@centerpoint.com or 630.586.8285.
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