Q3 2019 2019 - Lee & Associates · 2019. 11. 18. · 182 0 4 -2 4 6 8 10 12 14 16 18 80 60 40 20 0...

EASTERN MORRIS / FAIRFIELD SUB-MARKETQ3 2019 INDUSTRIAL MARKET SNAPSHOT

lee-associates.com/newjersey

669 River Drive, Suite 201 • Elmwood Park, NJ 07407 • Office: 973.337.1144

110 Fieldcrest Avenue, Suite 5 • Edison, NJ 08817 • Office: 732.452.0750

Q3 2019

Licensed Real Estate Broker

All Information is from a source deemed reliable, however no representation, expressed or implied is made as to the accuracy of the information contained herein, and same is submitted subject to errors, omission, change of price, rental or other conditions imposed by our principals.



Q3 2019

Class A: Extremely desirable investment-grade properties, commanding the highest rents and sales prices. Buildings are well located and provide efficient tenant layouts. They will contain modern mechanical systems, above average maintenance and management as well as the best quality materials and workmanship in trim and interior/exterior fittings. There is ample car and truck parking, 30’+ ceiling heights, large and plentiful docks. Virtually all new construction is Class A, comprising the majority of product built after 2000.

Class B: Older, middle of the road type properties, usually built 1970’s - 1990’s with 16’-28’ ceilings. Typically have average to good maintenance, management and tenants. Less desirable than Class A to investors and qualified tenants. May be deficient in a number of respects including floor plans, condition and facilities, including less docks, drive-ins and no climate control. They lack prestige and must depend chiefly on a lower price than Class A to attract tenants and investors.

Class C: No-frills properties often built no later than the 1960’s, that offer basic space and command lower rents and sales prices than any other buildings in same market. They have below-average maintenance and management and could have a mixed or low tenant prestige. Inferior or lacking mechanical/electrical systems are common too. Some properties may be lacking docks and tractor trailer parking entirely and could be contaminated. Ceilings are generally under 20’.

Market # of Properties Inventory SF Total Vacant SF Total Vacancy Vacancy Quarterly Change (bps) Total Availability Net Absorption SF Industrial Avg. NNN

Rent Flex Avg. NNN Rent Under Construction SF Delivered SF Proposed SF

New Jersey 20,886 958,304,109 38,969,110 4.1% (14) 7.0% 3,232,912 $7.49 $11.55 11,932,098 2,012,938 33,589,521

Northern & Central New Jersey

18,287 841,708,974 34,900,531 4.1% (10) 6.7% 1,893,066 $8.46 $12.33 7,624,503 1,132,758 25,016,402

EASTERN MORRIS / FAIRFIELD

798 37,015,281 1,405,737 3.8% (49) 6.7% 181,903 $8.72 $10.79 0 0 0

Market # of Properties Inventory SF Total Vacant SF Total Vacancy Vacancy Quarterly Change (bps) Total Availability Net Absorption SF Industrial Avg. NNN

Rent Flex Avg. NNN Rent Under Construction SF Delivered SF Proposed SF

Class A 10 1,172,019 7,328 0.6% (126) 4.2% 14,723 $8.70 $12.44 0 0 0

Class B 384 22,123,220 980,480 4.4% (53) 7.6% 117,244 $8.34 $10.65 0 0 0

Class C 404 13,720,042 417,929 3.0% (36) 5.3% 49,936 $9.07 $11.59 0 0 0

TOTAL: 798 37,015,281 1,405,737 3.8% (49) 6.7% 181,903 $8.72 $10.79 0 0 0

INDUSTRIAL Q3 2019 MARKET SNAPSHOT

EASTERN MORRIS / FAIRFIELD INDUSTRIAL MARKET BREAKDOWN





Q3 2019

4.2%

7.6%5.3%

0.6%

4.4%

3.0%

0.0%

4.0%

8.0%

12.0%

16.0%

20.0%

24.0%

Q3 2014 Q3 2015 Q3 2016 Q3 2017 Q3 2018 Q3 2019

DIR

EC

T A

VA

ILA

BIL

ITY

AN

D V

AC

AN

CY

AVAILABILITY & VACANCY

Class A Class B Class C Class A Class B Class C

AVAILABILITY VACANCY

$9.63 $9.06

$9.25

$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

Q3 2014 Q3 2015 Q3 2016 Q3 2017 Q3 2018 Q3 2019

REN

TS

AVERAGE NNN RENTS

Class A Class B Class C





Q3 2019

=

1

2

2

0

0

0

0

0

50

30

20

2

6

1

0

0

19

11

13

1

0

1

0

0

0 5 10 15 20 25 30 35 40 45 50

≤ 5,000 SF

5,001-15,000 SF

15,001-45,000 SF

45,001-75,000 SF

75,001-150,000 SF

150,001-250,000 SF

250,001-350,000 SF

350,001+ SF

# of Blocks

Class C Class B Class ABLOCKS OF AVAILABLE CONTIGUOUS SPACE

0

182

0

4

-

2

4

6

8

10

12

14

16

18

80604020

020406080

100120140160180200

Q3 2014 Q3 2015 Q3 2016 Q3 2017 Q3 2018 Q3 2019 MO

NTH

S TO

LE

ASE

THO

USA

ND

S O

F SQ

UA

RE

FE

ET

New Supply Net Absorption Under Construction Months to Lease

12 Gardner Road, Fairfield, NJ

NEW SUPPLY, NET ABSORPTION, UNDER-CONSTRUCTION & LEASE-UP TIME

TENANT SIGN DATE ADDRESS SFNNN RENT

PSFTERM

(Months)RENTAL

ESCALTIONSCEILING HEIGHT

TYPEYEAR BUILT / RENOVATED

NOTES

Breeze-Eastern SEP 2019 35 Melanie Ln., Whippany 116,246 $8.18 120 N / A 24' RENEWAL 1979 ESFR sprinklers

N / A JUL 2019 906 Murray Rd., East Hanover 30,330 $7.75 N / A N / A 21' NEW 1963 Wet sprinklers

N / A AUG 2019 930 Riverview Dr., Totowa 18,890 $9.00 84 N / A 16' - 21' NEW 1962 / 2000 2 docks, wet sprinklers

N / A SEP 2019 381-385 Main St., Little Falls 16,500 $7.95 N / A N / A 14' NEW 1972 Flex, 1 dock, 2 drive-ins

Corporate Woodworking

AUG 2019 368 Passaic Ave., Fairfield 7,239 $9.50 N / A N / A 15' NEW 19691 dock, 1 drive-in, wet sprinklers

N / A AUG 2019 1 Evans St., Fairfield 7,000 $7.79 36 N / A 20' NEW 1972 1 drive-in, wet sprinklers

N / A JUL 2019 9 Whippany Rd., Whippany 4,800 $12.50 N / A N / A 20' NEW 1984 / 2012 Flex

N / A JUL 2019 94 Ford Rd., Denville 4,800 $9.75 N / A N / A 14' NEW 19751 dock, 1 drive-in, dry sprinklers

DDS Contracting Inc. JUL 2019 18 Furler St., Totowa 4,000 $12.50 36 N / A 16' - 21' SUBLEASE 1990 1 dock, 1 drive-in

N / A AUG 2019622-628 Route 10 W, Whippany

3,000 $12.75 36 N / A 12' - 15' NEW 1950Flex, 1 drive-in, rail line and spots

N / A SEP 2019 343 New Rd., Parsippany 2,904 $9.50 N / A N / A 12' SUBLEASE 1981 1 dock, full climate control

WEIGHTED AVERAGE: 19,610 $8.50 62 - 21' - 1972 / 2006 -

EASTERN MORRIS / FAIRFIELD Q3 2019 NOTABLE INDUSTRIAL LEASES





Q3 2019

Source: CoStar

Source: CoStar

* Denotes Lee & Associates NJ Transaction

PROPERTY SALE DATE SIZE (SF) PRICE PSFCEILING HEIGHT

YEAR BUILT / RENOVATED

SELLER / BUYER NOTES

19 Chapin Rd., Bldg. D, Pine Brook JUL 2019 158,196 $25,308,411 $160 22' 2002Advance Realty & Camber RE Partners LLC / Intercontinental RE Corp. & Cohen Asset Mgmt. Inc.

Flex, 90.7% leaseed, 250 car parking, 24 docks, 6 drive-ins, portfolio sale

19 Chapin Rd., Bldg. A, Pine Brook JUL 2019 123,638 $39,315,433 $318 20' 2000Advance Realty & Camber RE Partners LLC / Intercontinental RE Corp. & Cohen Asset Mgmt. Inc.

Flex, 96.3% leased, portfolio sale, 150 car parking

19 Chapin Rd., Bldg. C, Pine Brook JUL 2019 123,638 $14,195,295 $115 22' 1999Advance Realty & Camber RE Partners LLC / Intercontinental RE Corp. & Cohen Asset Mgmt. Inc.

Flex, 100% leased, portfolio sale, 16 docks, 2 drive-ins, wet sprinklers, 150 car parking

19 Chapin Rd., Bldg. B, Pine Brook JUL 2019 123,638 $13,430,861 $109 22' 1999Advance Realty & Camber RE Partners LLC / Intercontinental RE Corp. & Cohen Asset Mgmt. Inc.

Flex, 90.7% leased, portfolio sale, 18 docks, 2 drive-ins, 150 car parking

12 Daniel Rd., Fairfield SEP 2019 100,000 $8,950,000 $90 N / A 1998Unifoil Real Estate Partners / EverWest Real Estate Investors, LLC

Flex, sale leaseback, 27k SF office, 188 car parking

60 E Halsey Rd., Parsippany AUG 2019 67,434 $8,000,000 $119 16' 1965Kent International, Inc. /Longpoint Realty Partners

Sale-leasebacl, 12k SF office, 7 docks, wet sprinklers, 56 car parking

76-78 Monroe St., Boonton JUL 2019 65,751 $2,600,000 $40 N / A 1880Packard Industries Inc. /MONROE STREET HOLDINGS LLC

Redevelopment, 1 drive-in

34 Owens Dr., Wayne AUG 2019 61,700 $7,250,000 $118 N / A N / AThe Tucker Group /Shaf International, Inc.

100% leased, 4 docks, 8 docks, 1 drive-in, 6,200 SF office, 50 car parking

25 Corporate Dr., Wayne JUL 2019 32,576 $4,200,000 $129 20' 1980 Itria Venures / Bakkafrost USA100% leased, 3.5k SF office, 28 car parking, 2 docks, 1 drive-in, wet sprinklers, 2 2-ton cranes

53 Indian Ln. E, TowacoSEP 2019 11,000 $1,981,000 $180 10' 2012 / 2017

Concepts TV Productions LLC /PDG LLC

Flex, owner-user, 70 car parking, 1 dock, wet sprinklers

WEIGHTED AVERAGE: 86,757 $12,523,100 $144 21' 1982 / 2017 - -

EASTERN MORRIS / FAIRFIELD Q3 2019 NOTABLE INDUSTRIAL SALES





Q3 2019

Jason LynchPrincipal

[email protected] 732.742.8672 O 973.475.7054

Troy WisseAssistant Vice President

[email protected] 201.693.7283O 973.406.2495

PRESENTED BY:

LEE & ASSOCIATES - NEW JERSEY is part of the 60 office Lee National network

$15+

BILLION TRANSACTION VOLUME (2018)

1000+

BROKERS AND GROWINGNATIONWIDE

1st

PRIVATE BROKERAGE FIRMIN UNITED STATES

91%

INCREASE TRANSACTION VOLUME

OVER 5 YEARS





Q3 2019

Q3 2019 2019 - Lee & Associates · 2019. 11. 18. · 182 0 4 -2 4 6 8 10 12 14 16 18 80 60 40 20 0...

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