Jeff Milanaik Gives His Predictions on NJ Industrial Real Estate in 2021

Over the next year, many of the trends that were present prior to the pandemic — that have now been accelerated due to its massive economic effects — will fuel continued expansion of New Jersey’s industrial market. A wave of demand driven by mass e-commerce adoption is creating an increasingly constrained supply of buildings and land sites. Those sites that remain available for development will be more complex than in years past, including many that carry significant environmental issues or other technical challenges. As the market continues to tighten, the advantage will naturally fall to industrial players who have the experience and resources to manage these complicated redevelopments. I believe we’ll also see users become more flexible in their requirements as they face intense competition for facilities along the state’s major highways and corridors. For instance, speed to become operational may very well be as important as the size of the facility. These dynamics will continue well after the pandemic has faded, setting the stage for another eventful and highly active year in the state’s already booming industrial market.