A comprehensive examination of the Northern New Jersey apartment market indicates that the dominant concentrations of competitive apartment space are located in the Hudson County submarket, amounting to 68,862 units and 26.7% of the metropolitan inventory, followed by Bergen County, with a 18.6% share, and Newark/Orange/East Essex County (17.3%). Since the beginning of Q4 2012, the fastest growing area has been the Hudson County submarket, adding 26,338 units over that period, or 56.9% of total metropolitan apartment completions.
Distribution / Warehousing
The Northern New Jersey warehouse/distribution market is comprised of 190.6 million square feet in fifteen geographic concentrations ranging in size from the 39.6 million square foot South Bergen/Meadowlands submarket to the Southwest Union submarket, which amounts to 3.4 million square feet. In the ten-year period beginning with Q4 2012, the Elizabeth/Linden submarket has experienced the greatest introduction of new inventory, 4.5 million square feet, amounting to 28.1% of all new competitive stock added to the market.
Flex / R&D
The Northern New Jersey Flex/R&D market is comprised of 27.8 million square feet in fifteen geographic concentrations ranging in size from the 6.5 million square foot South Bergen/Meadowlands submarket to the submarket, which amounts to 232,000 square feet. In the ten-year period beginning with Q4 2012, the South Bergen/Meadowlands submarket has experienced the greatest introduction of new inventory, 398,000 square feet, amounting to 53.2% of all new competitive stock added to the market.
Office
The Northern New Jersey office market is comprised of 105.7 million square feet in eighteen geographic concentrations ranging in size from the 18.2 million square foot Waterfront submarket to the Elizabeth/Linden submarket, which amounts to 1.1 million square feet. In the ten-year period beginning with Q4 2012, the Waterfront submarket has experienced the greatest introduction of new inventory, 858,000 square feet, amounting to 32.1% of all new competitive stock added to the market.
Retail
A comprehensive overview of the Northern New Jersey retail market indicates that the dominant concentrations of competitive retail space are located in the North Morris submarket, representing 5.3 million square feet and 22.7% of the metropolitan inventory, followed by South Bergen/West Bergen, with a 17.0% share, and Passaic (15.2%). Since the beginning of Q4 2012, the fastest growing area has been the North Bergen submarket, adding 466,000 square feet over that period, or 27.0% of total metropolitan retail completions.
Market Trends
2022 Population
4,155,780
Since
2022
Population Change
+0.08%
Household Average Income
$223,487.00
Number of Households
1,571,940
Employment
White/Blue Collar Jobs
32%
Office (2022)
13%
Industrial (2022)
Market Trends
Apartment
Inventory
Units/SF
Q2 2022
Q3 2022
Total
257,489
258,245
Completions
883
756
Conversions*
0
0
2022 Q3 Rent
Asking Change†
-0.7%
Effective Change†
-0.5%
Inventory: Constrabsorp
Q2 2022:
0.5 Ratio
Q3 2022:
1.4 Ratio
Rental Costs/Lease Rates‡
Asking
Q2 2022:
$2,350.24
Q3 2022:
$2,333.90
Effective
Q2 2022:
$2,245.21
Q3 2022:
$2,232.88
Gross Revenue
Q2 2022:
$2,221.11
Q3 2022:
$2,204.16
Absorption/Occupied Stock
Q2 2022:
0.8%
Q3 2022:
0.2%
Stock Net Absorption (Units)*
Stock
*Units that have been converted from a non-market rate multifamily subtype to a market rate subtype. †Percent change from the previous time period. ‡For Apartment properties, rent is a weighted average quoted as monthly rent per unit.
Market Trends
Distribution / Warehousing
Inventory
Units/SF
Q2 2022
Q3 2022
Total
189,509,000
190,592,000
Completions
1,056,000
1,083,000
Conversions*
0
0
2022 Q3 Rent
Asking Change†
5%
Effective Change†
5.8%
Inventory: Constrabsorp
Q2 2022:
0.5 Ratio
Q3 2022:
0.3 Ratio
Rental Costs/Lease Rates‡
Asking
Q2 2022:
$8.19
Q3 2022:
$8.60
Effective
Q2 2022:
$7.59
Q3 2022:
$8.03
Gross Revenue
Q2 2022:
$7.86
Q3 2022:
$8.39
Absorption/Occupied Stock
Q2 2022:
1.1%
Q3 2022:
2.3%
Stock Net Absorption (Units)*
Stock
*Units that have been converted from a non-market rate multifamily subtype to a market rate subtype. †Percent change from the previous time period. ‡For Retail and Industrial properties, rent is a weighted average quoted as annual NNN rent per square foot.
Market Trends
Flex / R&D
Inventory
Units/SF
Q2 2022
Q3 2022
Total
27,768,000
27,768,000
Completions
0
0
Conversions*
0
0
2022 Q3 Rent
Asking Change†
4.8%
Effective Change†
6.1%
Inventory: Constrabsorp
Q2 2022:
0 Ratio
Q3 2022:
0 Ratio
Rental Costs/Lease Rates‡
Asking
Q2 2022:
$11.50
Q3 2022:
$12.05
Effective
Q2 2022:
$10.21
Q3 2022:
$10.83
Gross Revenue
Q2 2022:
$10.67
Q3 2022:
$11.59
Absorption/Occupied Stock
Q2 2022:
0.6%
Q3 2022:
3.6%
Stock Net Absorption (Units)*
Stock
*Units that have been converted from a non-market rate multifamily subtype to a market rate subtype. Negative value indicates a loss of market rate units, positive value indicates a repurposing to market rate rental units. †Percent change from the previous time period. ‡For Retail and Industrial properties, rent is a weighted average quoted as annual NNN rent per square foot.
Market Trends
Office
Inventory
Units/SF
Q2 2022
Q3 2022
Total
105,684,000
105,684,000
Completions
0
0
Conversions*
0
0
2022 Q3 Rent
Asking Change†
0.3%
Effective Change†
0.2%
Inventory: Constrabsorp
Q2 2022:
0 Ratio
Q3 2022:
0 Ratio
Rental Costs/Lease Rates‡
Asking
Q2 2022:
$30.46
Q3 2022:
$30.56
Effective
Q2 2022:
$25.25
Q3 2022:
$25.29
Gross Revenue
Q2 2022:
$24.04
Q3 2022:
$24.17
Absorption/Occupied Stock
Q2 2022:
-0.3%
Q3 2022:
0.2%
Stock Net Absorption (Units)*
Stock
*Units that have been converted from a non-market rate multifamily subtype to a market rate subtype. †Percent change from the previous time period. ‡Office properties are a weighted average quoted as an annual gross rent per square foot.
Market Trends
Retail
Inventory
Units/SF
Q2 2022
Q3 2022
Total
12,922,000
12,922,000
Completions
0
0
Conversions*
0
0
2022 Q3 Rent
Asking Change†
0%
Effective Change†
0%
Inventory: Constrabsorp
Q2 2022:
0 Ratio
Q3 2022:
0 Ratio
Rental Costs/Lease Rates‡
Asking
Q2 2022:
$30.10
Q3 2022:
$30.11
Effective
Q2 2022:
$26.80
Q3 2022:
$26.81
Gross Revenue
Q2 2022:
$28.08
Q3 2022:
$28.10
Absorption/Occupied Stock
Q2 2022:
0.4%
Q3 2022:
0%
Stock Net Absorption (Units)*
Stock
*Units that have been converted from a non-market rate multifamily subtype to a market rate subtype. †Percent change from the previous time period. ‡For Retail and Industrial properties, rent is a weighted average quoted as annual NNN rent per square foot.