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Northeast Region I-95 Industrial Report
Spring 2022
Industrial demand continues to outpace supply along the Northeast I-95 Corridor, with Central New Jersey registering the lowest availability rate among the reported markets, at 2.8%. Asking rates across the Northeast I-95 Corridor continued to increase in Q1, with the greatest increase occurring in the Greater Philadelphia market where average asking rates are up 36.8% since the end of 2021, currently at $8.43/SF. This was followed by Central New Jersey which has experienced a 4.9% increase during this period, and is now achieving asking rates of $12.53/SF. Combined net absorption across the six markets in the first quarter was 9.6 million square feet (MSF). This was led by Northern New Jersey, which accounted for more than a third of the total with 4.0 MSF of positive net absorption. With the Northeast I-95 Corridor market posting positive net absorption this quarter, the availability rate remained tight as four out of the six markets posted availability rates below 4.0%. With the availability rate ending the first quarter at 4.1%, developers continue to work on keeping pace with occupier demand as construction continues to boom along the I-95 Corridor. Of the top five leases occurring this quarter, three were signed in the Greater Philadelphia market, with the largest being a 721,000-square-foot lease to Performance Team at 270 Daniels Way in Florence, New Jersey.
Industrial Demand Continues to Outpace Supply Along the Northeast I-95 Corridor
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Construction Pipeline
Market Insights
Overview
Northeast I-95 Industrial Markets
(visit Market Insights to explore the individual markets)
NYC Outer Boroughs
Central NJ
Boston
Greater Philadelphia
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Central New Jersey retains the lowest availability rate of the I-95 Corridor markets at 2.8%. The Greater Philadelphia market had a 36.8% increase in its average asking rent during Q1, and is now asking $8.43/SF, while pricing guidance on new construction is asking $10.00 - $15.00/SF. Of the 1.0 MSF of new construction delivered this quarter, 92.0% had already been pre-leased in the Baltimore/Prince George's County market.
Boston’s availability rate has seen a 200-basis points improvement since 2020, and ended Q1 at 3.8%. Pricing guidance for industrial buildings under construction is between $30.00 and $35.00/SF in the NYC Outer Boroughs. Leasing activity in Northern New Jersey increased 64% in Q1 from the previous quarter to 5.3 MSF.
Northern NJ
Baltimore/Prince George’s County
In the first quarter of 2022, there were 159 industrial buildings under construction totaling 59.0 MSF, of which 45.5% already had pre-lease commitments. Twelve of those projects are over 1.0 MSF, with the largest belonging to Hillwood Development at 1570-1630 Osgood Street in North Andover. Once completed later in 2022, the project will span over 3.8 MSF. The Northeast I-95 Corridor had 17 buildings delivered this quarter totaling 4.5 MSF, with only 32.2% being delivered still available. It is important to note that as higher priced blocks are leased, the market may see a drop in pricing, particularly if robust pre-leasing activity persists. Any immediate future asking rent declines would likely not be indicative of current market fundamentals, as taking rental rates and pricing on new construction continues to rise.
59.0 MSF
Total SF Under Construction
45.5%
Percent of Projects Pre-Leased
147M SF
Proposed Projects
Project Delivery
4.5 MSF
Total SF Completed
67.8%
Percent of Projects Leased at Completion
For deeper insights into each local industrial market, please find links to the latest market reports and researcher contacts.
Download the 22Q1 Boston Industrial Report Contact Jeff Myers, Research Director | Boston Email: jeffrey.myers@colliers.com
Download the 22Q1 New Jersey Industrial Report Contact Felix Soto, Research Manager | Tri-State Email: felix.soto@colliers.com
Download the 22Q1 NYC Outer Boroughs Industrial Report Contact Felix Soto, Research Manager | Tri-State Email: felix.soto@colliers.com
Download the 22Q1 Maryland Industrial Report Contact Miles Rodnan, Sr. Research Analyst| DC/MD/NoVa Email: miles.rodnan@colliers.com
Download the 22Q1 Philadelphia Industrial Reports: Suburban Philadelphia | Southern NJ | New Castle County Contact Rosemary Penny, Research Director | Greater Philadelphia Email: rose.penny@colliers.com