MARKET TRENDS
- Vacancy increased 200 basis points (bps) from one year ago — with the largest year-over-year change reported in Southern NJ, where vacancy rose 420 bps to 8.3%.
- Regional absorption deaccelerated over the last two quarters as retailers and e-commerce firms reevaluate their warehouse requirements; a reaction to softening consumer spending and higher interest rates.
- The construction pipeline is down 1.3 msf from Q3 2022; however, this will benefit the warehouse/distribution market by allowing recently delivered space to move off the market and prevent rent decompression.