<body><div><img src="https://img.particlenews.com/image.php?type=thumbnail_580x000&amp;url=0VEH0w_1GsjWiFd00" alt="https://img.particlenews.com/image.php?url=0VEH0w_1GsjWiFd00" width="800" height="533" ><p>Owners of existing warehouses in New Jersey are gaining the upper hand as new construction dries up, Bisnow reported from its Northeast Industrial and Manufacturing Conference.</p><p>Industrial deliveries fell 58% year over year in the third quarter, according to a Newmark report, which also showed stronger absorption.</p><p>Executives at the October conference at The Westin Jersey City Newport said high borrowing costs and local regulations are likely to keep building suppressed. They expect existing landlords to benefit, though not necessarily through sharp rent increases.</p><h2>Demand Outpaces a Thin Pipeline</h2><p>Brian Danahy, vice president of development and acquisitions at Stonemont Financial Group, said tenants are looking for about 80M SF in total.</p><p>New York City and northern New Jersey are among the most densely populated regions in the country, which feeds demand from e-commerce companies and third-party logistics firms.</p><p>James Holbrook, founder and executive chairman of the warehouse leasing platform Warehub, said big-box tenants seeking 400K SF or more are strong enough that such space leases quickly.</p><p>Only five buildings under construction are set to deliver in the next year, said Ryan Nelson, managing principal at Turnbridge Equities. That should make the market tighter than it was this year, including for big blocks of space.</p><p>Nick Dupuis, vice president of investments at the investment manager Realterm, told Bisnow, "We feel really good about the supply-demand imbalance and performance of those properties that are properly zoned and in well-connected locations."</p><h2>Entitlement and Permit Risk for Developers</h2><p>Developer Greek Real Estate Partners warned in a summer blog post that local rules have created entitlement risk. Zoning alone no longer assures a developer that a project can be built at the size it wants.</p><p>Mikki Columbus, vice president of leasing and development at Prologis, said that risk compounds with other required approvals, such as a five-year Department of Environmental Protection permit. The result, she said, is considerable uncertainty for developers.</p><p>Stefan Sansone, senior vice president of investments at Kurv Industrial, said the same restrictions make sites that already have approvals, and new ground-up projects, more attractive.</p><h2>Financing Helps Owners, but Rents May Not Jump</h2><p>Jim Cadranell, a senior managing director at JLL, said these factors will keep space scarce. For owners of existing buildings, that could mean an easier time finding financing to carry them, even if leasing up takes longer than planned.</p><p>Lenders still do not necessarily want owners to hold out for the highest possible rents, said Anthony Rinaldi, managing principal at Saxum Real Estate. He pointed to macroeconomic concerns, including the cost of borrowing.</p><p>Helen Paul, an executive director at Cushman &amp; Wakefield, said that pressure could limit revenue gains for landlords. Their returns could come in slightly lower than lenders would otherwise expect in a market with heavy demand and tight supply.</p></div></body>

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Owners of existing warehouses in New Jersey are gaining the upper hand as new construction dries up, Bisnow reported from its Northeast Industrial and Manufacturing Conference. Industrial deliveries fell 58% year over year in the third quarter, according to a Newmark report, which also showed stronger absorption. Executives at the...

New Jersey Warehouse Landlords Gain Leverage as Construction Drops 58%

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Owners of existing warehouses in New Jersey are gaining the upper hand as new construction dries up, Bisnow reported from its Northeast Industrial and Manu

New Jersey Warehouse Landlords Gain Leverage as Construction Drops 58%

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