- New Jersey recorded $832M in industrial sales in Q1 2025—more than any other US market.
- Industrial assets in the state traded at $255.6 PSF, over double the national average of $126.
- The market posted the highest year-over-year rent growth nationwide at 11.3%.
- Construction activity totaled 1.3M SF in Q1, with 6.3M SF currently underway—less than larger peers but still active.
Robust Investor Activity Defines New Jersey’s Industrial Market
New Jersey’s industrial sector surged to the top of the US rankings in the first quarter, with $832M in investment volume —more than triple its Q1 2024 total of $250M, reports Commercial Search. The metro outpaced Dallas ($711M) and Chicago ($616M) as the most sought-after industrial market.
Premium Pricing Reflects Demand
Industrial properties in New Jersey averaged $255.6 PSF—more than double the national average and higher than Phoenix ($176.9) and Indianapolis ($110.9). One of the largest trades was Prologis’ $166.8M acquisition of a 600K SF warehouse in South Brunswick. Also in March, Taconic Partners acquired a 360K SF facility in North Brunswick for $74.3M—its second deal in the state.
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Development Lags Behind But Remains Steady
New Jersey’s development pipeline remains active but trails other large markets. As of March, roughly 6.3M SF were under construction, equating to just 1% of total inventory—below the 1.7% US average. When including planned projects, the share rises to 2.4%, slightly ahead of Chicago (1.7%) and Orange County (1%).
One notable project is Russo Development’s Kingsland Meadowlands, which broke ground on its first phase totaling 932,763 SF in Lyndhurst. Once completed, the campus will feature seven buildings and approximately 3.4M SF of space.
Completions Down, But Rent Growth Up
Q1 2025 saw the delivery of 2.1M SF of new product—down nearly 1M SF from the same period last year. The largest contributor was 2020 Acquisitions, which completed three buildings totaling 1.6M SF within Central 9 Logistics Park in Old Bridge.
Despite the slowdown in completions, New Jersey’s average industrial rent surged to $11.70 PSF—$3 above the national figure—with a nation-leading year-over-year rent growth of 11.3%. Vacancy stood at 9.6%, slightly above the national average but expected to tighten as leasing activity accelerates.
Why It Matters
With premium pricing, rising rents, and continued demand from logistics and distribution tenants, New Jersey remains a top-tier industrial investment market. Even as development moderates, strong fundamentals and access to critical infrastructure—like East Coast ports—make it a strategic choice for industrial real estate stakeholders.
