Tag Archives: Warehouse

Industrial Sector Will Continue to be Driving Force in NJ Construction Next Year

Industrial development is going to continue to be a driving force in New Jersey’s construction industry in the near future but land supply will likely fall short of the demand, according to CBRE, a commercial real estate and investment firm, which released its third quarter industrial market report for the state and looked at 2020 and 2021 as well.

“The demand is there,” said Mindy Lissner, CBRE industrial broker and executive vice president told RealEstateNJ. “It’s justifying the pipeline and what’s getting built, so I don’t think we’re overbuilding—I think we need more buildings right now to satisfy requirements.”

Projected deliveries through 2020 will add roughly 22 million square feet to New Jersey’s stock of industrial space, Lissner said. About a third of that space is “already leased or spoken for,” she said, adding that the firm is tracking between 40 million and 50 million square feet of current demand overall. That would be nearly two-thirds of the state’s overall construction pipeline that CBRE is tracking over a five-year horizon, which comprises about 150 projects spanning 65 million to 70 million square feet, according to the article.

E-commerce companies looking for warehouses to store their products are a primary factor for the quest for more space. But it’s not just about space. These corporations are also looking for more modern, better functioning facilities that have higher ceilings, technology, and better, more efficient layouts than the buildings of the past, Lissner said.

Some of the biggest industrial projects in the state include: the 4.1 million square foot Linden Logistics Center; the Opus Warehouses 975,000 square-foot distribution center in Phillipsburg; and Kingsland Meadowlands three million square-feet of warehouse space on more than 700 acres spanning parts of North Arlington, Lyndhurst and Rutherford.

Industrial construction won’t be the only area to see growth in the near future. The CBRE third quarter office market report released last week predicts that office construction in South Jersey’s Philadelphia suburbs will improve as well with space more than doubling in Philadelphia and the surrounding area, the report said.

One Million SF in E-Commerce Warehouse Space Coming to Bayonne

For consumers, part of the appeal of buying things online is avoiding a brick-and-mortar store. The item goes from the website to their doorstep, like magic. But all of those e-commerce purchases do need a place to go during the shipping process. For the tristate area, that place is going to be a collection of warehouses on a man-made peninsula in Bayonne.

Lincoln Logistics Bayonne is being built on 90 acres of land that once belonged to the U.S. government and was home to the Military Ocean Terminal tract. It has been dormant since 1999. The site plan consists of four warehouse buildings, individually ranging from 150,000 square feet to 477,000 square feet and totaling 1.6 million square feet for e-commerce shipments. Each building will have 40-foot ceilings.

Vertical construction is expected to begin in early 2020. To be ready for redevelopment, the 70-year-old structures on the site were demolished, and to comply with post-Hurricane Sandy standards, the elevation of the site is being raised six feet.

The location provides access for shipping. Lincoln Logistics Bayonne will contain nearly 63 acres of riparian water rights and maritime access to the Hudson River and Newark Bay. It will also have immediate access to nearby major highways, including the New Jersey Turnpike and routes 78, 440 and 1 and 9. It is also adjacent to the Global Container Terminal and is less than 10 miles from Newark Liberty International Airport. And, according to developer Lincoln Equities Group (LEG), there are 27 million consumers within a two-hour drive and 59 million consumers within a 5-hour drive from the location.

“We’re just 7 miles from Newark and 8 miles from the Holland Tunnel,” LEG President Joel Bergstein said during a tour of the site in June. “This will be a prime distribution point for the city.”

The redevelopment is expected to create 2,700 jobs.