February 15, 2022:
Becker LLC Real Estate and Logistics Practice Leader Anthony J. Vizzoni interviewed Zachary Csik of Rockefeller Group to discuss the Current Trends for New Jersey Developers in the Logistics Marketplace.
Vizzoni: From our Firm’s perspective, the warehouse and logistics market in New Jersey continues to remain very hot. As far as new real estate matters that our Firm’s commercial real estate practice group attends to, we would say over 80% currently relate to warehousing and logistics. From your perspective what you are seeing on the acquisition and development front, in particular, what does the inventory of available land look like for purchase to be developed into warehouse and logistics sites?
Csik: The warehouse and logistics market in New Jersey is unprecedently hot. Lease up timeframes for new Class A product is virtually zero and rental rate records are breaking every month in all regions of the state. Naturally, this has led to a feverish demand for land, which has led to land prices rising to historical levels. Because of the competition for land, developers are being forced to take on shorter due diligence timeframes, provide less entitlement contingencies, ensure more non-refundable money before closing or “as-is” non-contingent closings in some instances.