New Jersey industrial leasing sped up in 2024

 By Mateusz Wnek CoStar Analytics

As 2024 industrial leasing data collection winds down, New Jersey's full-year tally shows a 14% year-over-year increase in new commitments. Total deal counts rose 6% in the past year, while new lease sizes increased 7% to 31,000 square feet.

The state's new leasing volume totaled 38.2 million square feet in 2024, reflecting strong growth of over 60% in Bergen and Burlington counties. Middlesex County, by far the largest industrial node in the state, led the pack in absolute leasing volume with 10.3 million square feet, even though it was 5% below its 2023 level.

Middlesex County’s industrial inventory is 240.6 million square feet, nearly a quarter of the state’s total. The area enjoys ample highway access and proximity to the port district, allowing for quick movement of imports throughout the Tri-State area.

Much of Middlesex County’s inventory is clustered along the New Jersey Turnpike in Edison and Cranbury and around Interstate 287 in Piscataway. Yet Woodbridge’s Port Reading community was home to the largest new lease signed in 2024.

Last February, Elogistek, a supply chain solutions provider, committed to occupying the entire 607,417-square-foot warehouse at the Port Reading Business Park. The Prologis-owned property was previously used by Bed Bath & Beyond as an e-commerce fulfillment center until 2023.

Meanwhile, Burlington County led the league tables with leasing volume as a percentage of existing inventory. Landlords inked 5.3 million square feet of new commitments, representing almost 7% of the area’s 78.2-million-square-foot inventory.

CIRRO Fulfillment, a leading global e-commerce fulfillment service provider, was the most active tenant leasing space in Burlington County. In May, the company leased 286,180 square feet at the Burlington North Logistics Center in Mansfield. Then, in September, CIRRO occupied the entire 806,000-square-foot distribution facility down the road at the Mansfield Logistics Park.

At the other end of the spectrum, Essex County posted an 18% decline in leasing activity, driven largely by the lack of available small-bay space desired by local businesses. Properties smaller than 50,000 square feet make up 36% of Essex County’s 93 million-square-foot industrial stock, which can be found predominantly in Newark, Fairfield and Clifton.

The availability rate of small-bay space in Essex County is at just 3.6%, among the lowest in the state, while the rate is at 8% for spaces larger than 50,000 square feet.

Last year’s pickup in leasing activity was a welcome sight for property owners, as the state’s overall availability rate edged down to 10.9%. The counties that powered leasing volume this past year will be in the spotlight again in 2025.

That’s because Middlesex, Bergen and Burlington collectively have 52.5 million square feet of available space, accounting for 45% of New Jersey's total. Notable listings can be found in recently completed big-box distribution and warehouse properties in Old Bridge, Cinnaminson and Teterboro.

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