A comprehensive assessment of the Central New Jersey apartment market suggests that the dominant concentrations of speculative apartment space are located in the East Middlesex submarket, representing 32,987 units and 18.0% of the metropolitan inventory, followed by Southwest Middlesex, with a 14.2% share, and Northwest Middlesex (12.9%). Since the beginning of Q4 2012, the fastest growing area has been the Somerset submarket, adding 3,122 units over that period, or 27.6% of total metropolitan apartment completions.
Distribution / Warehousing
The Central New Jersey warehouse/distribution market is comprised of 206.7 million square feet in nine geographic concentrations ranging in size from the 56.6 million square foot South Middlesex submarket to the Ocean County submarket, which accounts for 5.9 million square feet. In the ten-year period beginning with Q4 2012, the South Middlesex submarket has experienced the greatest introduction of new inventory, 15.2 million square feet, amounting to 37.7% of all new competitive stock added to the market.
Flex / R&D
A summary of key real estate supply and demand metrics shows that during the fourth quarter the Central New Jersey Flex/R&D market recorded positive net absorption, climbing effective rents, and downward movement in the market's vacancy rate. It is important to look at each of these critical measures of market equilibrium in more detail and from both a historical and forecast perspective.
Office
A comprehensive assessment of the Central New Jersey office market shows that the largest concentrations of competitive office space are located in the Trenton submarket, amounting to 9.7 million square feet and 14.5% of the metropolitan inventory, followed by Metropark/Edison/Woodbridge, with a 13.0% share, and Princeton (11.5%). Since the beginning of Q4 2012, the fastest growing area has been the South Middlesex submarket, adding 770,000 square feet over that period, or 43.7% of total metropolitan office completions.
Retail
The Central New Jersey retail market is comprised of 36.0 million square feet in eight geographic concentrations ranging in size from the 7.0 million square foot Ocean County submarket to the Southwest Middlesex submarket, which amounts to 2.7 million square feet. In the ten-year period beginning with Q4 2012, the Somerset submarket has experienced the greatest introduction of new inventory, 286,000 square feet, amounting to 26.6% of all new competitive stock added to the market.
Market Trends
2022 Population
2,503,860
Since
2022
Population Change
+0.07%
Household Average Income
$223,806.00
Number of Households
941,500
Employment
White/Blue Collar Jobs
31%
Office (2022)
13%
Industrial (2022)
Market Trends
Apartment
Inventory
Units/SF
Q2 2022
Q3 2022
Total
183,296
183,296
Completions
482
0
Conversions*
0
0
2022 Q3 Rent
Asking Change†
3.5%
Effective Change†
3.4%
Inventory: Constrabsorp
Q2 2022:
0.7 Ratio
Q3 2022:
0 Ratio
Rental Costs/Lease Rates‡
Asking
Q2 2022:
$1,638.84
Q3 2022:
$1,695.49
Effective
Q2 2022:
$1,604.17
Q3 2022:
$1,659.35
Gross Revenue
Q2 2022:
$1,606.87
Q3 2022:
$1,663.24
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 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
206,466,000
206,683,000
Completions
1,220,000
217,000
Conversions*
0
0
2022 Q3 Rent
Asking Change†
5.2%
Effective Change†
6%
Inventory: Constrabsorp
Q2 2022:
0.6 Ratio
Q3 2022:
0.1 Ratio
Rental Costs/Lease Rates‡
Asking
Q2 2022:
$7.53
Q3 2022:
$7.92
Effective
Q2 2022:
$7.03
Q3 2022:
$7.45
Gross Revenue
Q2 2022:
$7.28
Q3 2022:
$7.75
Absorption/Occupied Stock
Q2 2022:
1.1%
Q3 2022:
1.3%
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
26,286,000
26,286,000
Completions
0
0
Conversions*
0
0
2022 Q3 Rent
Asking Change†
4.9%
Effective Change†
5.6%
Inventory: Constrabsorp
Q2 2022:
0 Ratio
Q3 2022:
0 Ratio
Rental Costs/Lease Rates‡
Asking
Q2 2022:
$11.75
Q3 2022:
$12.33
Effective
Q2 2022:
$10.62
Q3 2022:
$11.22
Gross Revenue
Q2 2022:
$11.42
Q3 2022:
$12.13
Absorption/Occupied Stock
Q2 2022:
0.9%
Q3 2022:
1.2%
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
67,059,000
67,059,000
Completions
44,000
0
Conversions*
0
0
2022 Q3 Rent
Asking Change†
1%
Effective Change†
1.1%
Inventory: Constrabsorp
Q2 2022:
0.1 Ratio
Q3 2022:
0 Ratio
Rental Costs/Lease Rates‡
Asking
Q2 2022:
$26.28
Q3 2022:
$26.55
Effective
Q2 2022:
$21.20
Q3 2022:
$21.43
Gross Revenue
Q2 2022:
$20.91
Q3 2022:
$21.13
Absorption/Occupied Stock
Q2 2022:
0.9%
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. ‡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
22,196,000
22,196,000
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:
$24.50
Q3 2022:
$24.51
Effective
Q2 2022:
$21.65
Q3 2022:
$21.65
Gross Revenue
Q2 2022:
$21.59
Q3 2022:
$21.56
Absorption/Occupied Stock
Q2 2022:
0%
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 Retail and Industrial properties, rent is a weighted average quoted as annual NNN rent per square foot.