New Jersey Industrial Market Stays Strong Under Pressure
Why New Jersey Industrial Is Holding Up Absorbing earlier excess supply, New Jersey’s industrial market showed renewed stability in 2026 as vacancy rates edged lower and construction activity slowed. Northern and Central New Jersey posted lower vacancy, while statewide figures also improved quarter over quarter. At the same time, deliveries slowed and the development pipeline dropped sharply from its 2023 peak, limiting new competitive space. Overall vacancy declined to 7.6% in Q2, reinforcing signs that the market was tightening. Demand Base Remains Intact Demand remained broad-based, with positive net absorption supported by occupied completions and build-to-suit projects. Elevated construction costs and tighter financing have also reduced speculative starts, a trend seen across markets facing construction financing costs . That pattern reduced immediate vacancy pressure and helped the market digest prior oversupply more effectively. Location advantages also continued to matter. Por...