Despite the normalization of demand for industrial space and the rising cost of capital, most markets covered by Commercial Edge have experienced an increase in average sales prices this year. In fact, the latest industrial report for June revealed that nationwide industrial sales totaled $19.7 billion through May with transactions averaging $142 per square foot.

Specifically, the New Jersey market recorded the fifth-highest sales volume so far this year with $753 million in transactions through May. Properties here also traded at an average of $272 per square foot, marking a 26% increase compared to 2023. The report also highlights the addition of new supply and rising vacancy rates: Since early 2022, the market has seen the delivery of 29 million square feet of industrial space, accounting for 5.0% of the current stock. This influx pushed the vacancy rate up to 5.7% in May, which was just 0.1% above the national average.

Despite the increase in supply, rent growth remains strong with in-place rents rising by 9.6% in the last 12 months. In particular, key submarkets — such as Ports, Exit 10/12, Meadowlands and Exit 8A — continue to attract investors due to their proximity to the Port of New York and New Jersey (the nation’s busiest port in May) and the dense population along the Northeastern Corridor.

Goodman Group Purchases Former Printing Plant in Jersey City

Jersey City’s dwindling developable land is evident in the sky-high price paid for a redevelopment project. Goodman Group, a California-based industrial developer, recently acquired the former New York Daily News printing plant for a whopping $92 million.

As it stands, Goodman plans to repurpose the 21.7-acre site (which encompasses a three-building complex totaling 464,400 square feet) into “last-mile” warehouses. These facilities will be custom-built to meet the specific needs of tenants.

“The proximity of this site to the millions of residents in and around New York City helps our customers meet rising delivery and service expectations,” said Goodman North America CEO, Anthony Rozic. “We are enthusiastic about the northern New Jersey market, which remains robust in terms of the underlying demand for modern warehousing and distribution space and are actively pursuing additional acquisition and development opportunities there.”

Meanwhile, the sellers — a partnership between the New DN Company and Twenty Lake Holdings — acknowledged the unique value of the location. They also expressed enthusiasm about the property at 125 Theodore Conrad Drive as the buyers transform into “the country’s most sought-after locations for warehouses.”

“While the sale of the New York Daily News almost seven years ago after our stewardship of nearly 25 years remains bittersweet, we are pleased that the land will be transformed into a modern warehouse and will support the economic development of the local economy,” said Eric Gertler, chairman of New DN Company.