The New Jersey landlords are not able to meet the demands of the space requirement of the industries. The demand for industrial space is growing and getting stronger every passing month.
The supply now drives the industrial market. The industries are not able to keep pace with the supply. They take too long to develop the products and there is also not enough land for them to expand their production.
There is no doubt that the industrial sector will be booming in the near future as there is huge demand through the e-commerce stores. There is a serious shift taking place from the brick and the mortar stores to the online stores.
The lease deals for the NJ’s industrial space are drying up. The state is now one of the leading logistics hubs for the online retailers and also for the other industries. There is the need for a lot of space and landlords do not have the necessary space to offer for the industries.
In the first quarter of 2018, 5.3 million square feet of lease agreements were signed in between the landlords and the industries. This is 27 percent less than the average lease agreements signed in between the period 2015 and 2017.