NJ was ‘screaming’ for warehouses. Now many struggle to find tenants
As the COVID-19 pandemic swept through New Jersey in 2020, it spurred growth in online purchases as people were forced to isolate at home. That, in turn, spiked demand for warehouse space. And warehouses started popping up all over — generating anger and opposition among many New Jersey residents. But it turns out that warehouse developers overestimated demand. Throughout New Jersey, developers are hitting the brakes on construction of new warehouses, which are also called “logistics hubs,” “distribution centers” and “fulfillment centers.” Warehouse construction is at half the level seen during the pandemic, said Brian Golden, a senior logistics executive at CBRE, a company that negotiates leases between the owners of commercial space and the companies that occupy them. Story continues below photo gallery. Tim Evans, research director of New Jersey Future, a policy advocacy group, said that “demand for storage space spiked during COVID for several reasons, and then the commercial construction industry might have slightly overshot in their response, building a bit more than was actually necessary for supply to catch up to demand.” Total warehouse space in North Jersey has grown 12% since 2016, from 203 million square feet to nearly 227 million square feet, reported CoStar,
