As rent growth inverts and sublease space grows, affordable and competitive options emerge

Available sublease space has continued to swell within the Northern New Jersey market, climbing 37.0% year over year. The nearly 9.5 million square feet (msf) of subleases in the market offer occupiers affordable, competitive options in modern and functional warehouse space. Two examples are found at Exit 8A and Exit 7A/Trenton, as Home Depot and DMI have both brought sizeable sublease options, with considerable term remaining, to market. Evidence of demand for such options is seen at Linden Logistics Center, where two subleases at 600 and 700 Linden Logistics Way found users in Q3. Ramifications of such competition may be putting pressure on average asking rents, which declined nearly 1.0% from 12 months prior.

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