Black Friday — the unofficial start of the holiday shopping season — is about two months away.

And that’s if you don’t count all the holiday shopping that gets done between Halloween and Thanksgiving weekend.

So the timing couldn’t be worse for a potential strike by the International Longshoremen’s Association, the union that represents dock workers, which has threatened to walk off the job if a new contract with the East Coast port terminal and shipping companies is not ironed out by the time the old contract expires on Sept. 30.

The ILA cut off negotiations in June, and in an update Tuesday, the Lyndhurst-based U.S. Maritime Alliance, or USMX — which represents the terminal operators and shipping lines — said there was no progress on negotiations for a master contract.

A strike by the ILA would effectively shut down some of the busiest ports across the nation, including the Port Authority of New York and New Jersey, potentially upending the delivery of billions of dollars worth of consumer goods during peak shipping season.

The ILA, based in North Bergen, represents 85,000 workers across the East and Gulf coasts.

Its leaders are seeking significant pay hikes for their members, saying they deserve a fair share of the profits that shopping and port terminal companies have made as cargo volume remains higher after the demand caused during the COVID-19 pandemic.  

The union cut off contract talks in June after learning that a form of automation had been introduced at the Port of Mobile in Alabama, which they said violated the existing contract. The port had started using an auto gate system that autonomously processes trucks without ILA labor, the union said.

“We have tremendous respect for the ILA and its members, but it is disappointing that we have reached this point where the ILA is unwilling to reopen dialogue unless all of its demands are met,” the USMX said in a statement Tuesday.

Earlier in the month, USMX said it “has still been unable to secure a meeting with the ILA to resume negotiations on a new master contract.”

Representatives for the longshoremen’s association could not be reached for comment on Tuesday.

Strike could mean weeks of supply chain delays

A strike could impact key ports on the East and Gulf coasts, from Maine to Houston, and it would cause a complete work stoppage at the Port of Newark and Elizabeth. The Port Authority of New York and New Jersey acts as the landlord at those ports, leasing out space to the terminal companies.

Peter Tirschwell, vice president for maritime and trade at S&P Global, said that a strike of a few days could mean weeks of supply chain delays, while a strike lasting a week or longer would mean delays of over a month.

“A longer walkout than that will begin to seriously impact holiday shipments,” he said in an email.

Maersk — the world’s second largest shipping container company — said in a Sept. 10 note to customers that “even a one-week shutdown could take four to six weeks to recover from, with significant backlogs and delays compounding with each passing day.”

Retails have pushed forward importing schedule

“Many importers — retailers and other companies — have been aware for months of the possibility of a strike, and have therefore pushed forward their importing schedule so that a lot of holiday goods are already in the country and safe from a strike,” Tirschwell of S&P added.

Shipping to ports on the West Coast has surged — for example by 41% year over year this June at the Long Beach port, a port press release said, as companies seek backup locations to which they could ship.

“We are recapturing market share and consumer spending is driving cargo to our docks as we head into the peak shipping season,” Port of Long Beach CEO Mario Cordero said in a statement. Meanwhile shipping surged over the summer, according to the Port Authority of NY and NJ.

But that process of rerouting ultimately adds to the cost of shopping, meaning more expensive goods on the shelf, said Richard Wohlrab, vice president of international logistics at Mariner Logistics.

Jonathan Gold, the National Retail Federation’s vice president of supply chain, called on the ILA and USMX to “return to the table and actually negotiate a new deal.”

A strike would mean “holiday shipments might not arrive on time” for retailers, Gold said last week.

“Manufacturers might not receive parts, materials, and supplies needed for production, which will lead to assembly lines shutting down,” Gold said.

“And farmers won’t be able to get their products to overseas markets, which could lead to lost sales,” he said.

By Daniel Munoz

Industrial vacancy has risen for six straight quarters to reach 6.1% in June and more space is soon to be delivered. But developers need not panic as the tide is about to turn, according to Marcus & Millichap’s midyear 2024 industrial report.

In those six quarters, the company noted, nearly 629 million SF of industrial space was delivered nationwide, increasing inventory by 3.5%. In 2Q 2024, the average asking rent fell for the first time since 2011, after spiking 44% over the preceding five years.

However, the report pointed out, that 27% of current vacancies occurred in just five metros: Atlanta, Dallas-Fort Worth, Houston, Riverside-San Bernardino, and Phoenix. Even though these are metros with high demand, vacancy is expected to rise as they are flooded with 108 million SF of new industrial space collectively in 2024, compared with 129 million SF to be spread among the remaining 31 metros studied.

With much new construction expected to be delivered before the end of the year, “completions may fall short of long-term demand in most markets, as tenants frequently favor newer and higher-tech facilities,” the report commented. That trend is spurred by automation and robotics, which encourage a search for newer facilities that offer these amenities. “New move-ins have generally entailed tenants vacating older, more rudimentary facilities,” it noted.

Demand for industrial space is also driven by the growth of e-commerce. “These factors will amplify omnichannel retailers’ and logistics providers’ long-term space demand, with leasing activity showing strength in the first half of 2024,” the report stated, citing the examples of Amazon, Walmart, Home Depot and Burlington.

In the first six months of the year, some companies opted to acquire their own facilities. They included Microsoft, NVIDIA, Nestlé and Fortinet.

The additional space required to accommodate increased automation is also driving industrial demand. Over 35% of the construction pipeline consists of facilities of one million or more SF and this was the only size category to improve net absorption in the year ended June 24. Rents in this category also improved 4.6% year-over-year for new supply.

At the same time, the report predicted demand for smaller to mid-sized facilities would rise over time, encouraged by new federal programs like the CHIPS Act and the Inflation Reduction Act as well as the shift to reshoring and nearshoring that encourage domestic manufacturing. Indeed, by segment, manufacturing had the lowest vacancy rate (4.5%) but also the lowest rent growth (3.2%). As of June, roughly 92 percent of the manufacturing space under construction already had a tenant in place.

“These dynamics position most metros to observe upticks in manufacturing demand for older, sub-250,000 square foot properties, influencing some owners to upgrade existing facilities to attract prospective tenants,” the report said.

Even the smallest facilities – which represented only 2.7% of active construction — are expected to benefit. “Ranking as the least-vacant size tranche as of mid-year 2024, assets between 10,000 and 50,000 square feet captured at least a 10-year-high share of trades in the first six months,” it noted.

The report also cited an active industrial lending environment that Fed rate cuts would boost. It noted that insurance companies accounted for 25% of all industrial financing in 2023 – the highest level in eight years – “mostly in the form of portfolios priced at $25 million and above.” Regional and local banks remained the primary lenders for loans of $10 million or less, representing 33% of all loans. Manufacturing and R&D sites are favored.

“Moving forward, the industrial sector’s long-term leases, limited move-out risk relative to other property types, and high availability of federal grants and tax breaks will continue to lead lenders to view these assets positively,” the report stated.

 

After a slight decline during the first three months of 2024, North and Central Jersey’s industrial sector was back in positive form during the second quarter with 5.9 million square feet leased – a 16% quarterly increase, according to commercial real estate firm CBRE’s New Jersey Industrial Figures report.

Strong demand by smaller tenants, particularly third-party-logistics (3PL) companies, which accounted for 47% of the market’s total leasing activity, helped push absorption to a positive 1.7 million square feet, according to the report. As a result, occupancy increased for the first time since early 2023 – the vacancy rate jumped by 10 basis points (bps) to just 5% due to the delivery of two million square feet of new product entering the marketplace, the slowest increase in vacancy since the same time last year.

“New Jersey’s industrial market continues to exhibit resiliency despite economic concerns and lingering inflation felt earlier this year,” said CBRE’s Chad Hillyer in a news release. “Smaller leases by 3PL and food and beverage companies accounted for most of the leasing activity during the quarter, which once again was strong, especially in the 50,000 to 100,000 sq.-ft. range.”

Given that 1.6 million square feet of space was absorbed in properties built after 2021, strong leasing activity in the second quarter was a boon for developers of new facilities. The largest two leases in the market during were DSV’s 355,000 square-foot commitment at 300 Salt Meadow Road in Carteret, and JW Fulfillment’s 342,000 square-foot lease at 99 Callahan Boulevard in Sayreville.

While the vacancy rate was up slightly, sublease availabilities reached the highest level since the third quarter of 2020 at 6.5 million square feet. The average asking rents remained relatively stable quarter-over-quarter with Class A space rents at $19.40 per square foot. Industrial space in Class B and C properties experienced an increase of 3% due to strong demand for smaller units, to end the quarter at $16.62 per square foot.

For most of the past decade, it has been challenging to find large blocks of industrial space available for lease near the largest U.S. seaports. In some markets, such as Los Angeles and Northern New Jersey, it was extremely difficult to secure any major spaces in the mid-pandemic boom in imports from 2021 through early 2022.

However, both the doubling of average industrial rents in many port-adjacent locations and the unprecedented wave of distribution center development have upended these tight market dynamics. In the current market, large tenants seeking industrial space near the busiest U.S. seaports have more options than at any point in at least 20 years.

According to the Census Bureau, the top five U.S. seaports by the combined weight of imports and exports processed in 2023 were the Port of Los Angeles, the Port of Newark, the Port of Houston, the Port of Savannah, and the Port of Virginia in Norfolk.

Since the end of 2020, the combined stock of existing industrial properties within a 30-minute rush hour drive of these ports has increased by 9.5% or 72 million square feet, roughly the size of 1,250 American football fields. Meanwhile, another 20 million square feet of industrial space remain under construction in these locations.

With developers focused on large projects that are designed to appeal to high-credit industrial tenants and garner interest from institutional real estate investors, the majority of this recently built space is comprised of projects that are 100,000 square feet or larger. The bulk of this space had also finished construction since the beginning of 2023 when industrial tenant expansions began to slow nationwide.

As a result, the square footage available for lease in industrial properties 100,000 square feet or larger within a 30-minute drive of the five busiest U.S. seaports reached a record late last year and has since risen even further, to almost 59 million square feet.

Even in the area within a 30-minute drive of the Port of Los Angeles, where the density of existing properties has kept new warehouse construction limited, the total square footage of industrial space available for lease in properties 100,000 square feet or larger is close to 8 million square feet, the highest level CoStar has ever recorded. Prolonged negotiations over a new long-term labor contract for the union that represents dockworkers on the West Coast, combined with industrial rents that sky-rocketed in mid-pandemic, have caused local industrial tenants around the port to shed space in 2023 and early 2024.

Among the five busiest U.S. seaports, only one — the Port of Virginia — has an availability rate in the single digits for nearby big-box industrial properties and below its 15-year average. Numerous marshlands and wildlife reserves that surround Norfolk, where the Port of Virginia is located, have kept nearby industrial construction very limited. Lower industrial rents than those found in major West Coast and Northeastern U.S. port cities have also kept Norfolk’s tenants from shedding existing space in the same numbers as recently seen in Los Angeles and Northern New Jersey.

Most U.S. industrial markets have a significant divergence in availability between big-box industrial spaces and smaller industrial spaces. The latter is in very short supply as few developers have built projects catering to tenants occupying warehouse spaces smaller than 50,000 square feet in recent years.

Industrial areas surrounding the busiest U.S. seaports are no exception. In stark contrast to record high availability among industrial properties 100,000 square feet or larger, space available for lease in properties smaller than 50,000 square feet and within a 30-minute drive of the five busiest U.S. seaports is still near the lowest levels CoStar had ever recorded before the pandemic.

Availability rates for industrial properties smaller than 50,000 square feet surrounding the Ports of Newark, Houston, and Virginia are all well below their 15-year averages. Meanwhile, availability rates for similar properties near the Ports of Los Angeles and Savannah are essentially commensurate with long-term norms.

 

According to industrial CRE giant Prologis, its Industrial Business Indicator Activity Index showed an April level of activity “consistent with demand generation, supported by macro data that reflects restocking inventories amid resilient consumption activity, although realized net absorption has lagged.”

However, that is paired with a continued reduction of industrial construction, setting up an ongoing and future lack of supply, with greater competition for space in 2025 and, presumably, rents rising.

The IBA Activity index was 56.3 in April, down from a 58 average present in the first quarter of the year. According to the company, macro drivers of activity were “solid” with core retail sales showing 1.1% month-over-month growth in March and a 4.5% year over year. “Adding to demand drivers, the more logistics-intensive e-commerce channel outperformed with 2.7% month-over-month and 11.3% year-over-year growth while in-store sales grew 0.4% month-over-month and 2% year-over-year in March,” they said.

Facilities utilization was about 85% in both March and April. That’s up from a low of 83% in the last quarter of 2023.

“Despite a strong rise in import volumes, sales outpaced inventory growth, pushing down the inventory-to-sales ratio to 1.24, approximately -3% below the 2019 average. This points to further need to build inventories, particularly for wholesalers.”

A lack of warehouse space could also have more extended impact on logistics, leaving less room for products coming into the country.

The company also noted that net absorption of 26 million square feet underperformed what might have been expected. “IBI readings and macro data suggest logistics real estate demand growth should be higher than what was realized in Q1,” they said.

Prologis pointed to two major but temporary factors. One was that some customers had been able to accommodate growth using capabilities in their existing networks, which the lower utilization rates and a rise in sublease space in some markets indicated. But there are likely only one or two more quarters worth of extra space left, as the 84.4% April utilization rate was below the more typical 85% to 86%. In addition, sublease space growth slowed everywhere other than Seattle and Southern California.

The second factor was economic uncertainty and an emphasis on cost control delaying decision making. “Evidence of this trend includes extensive property tours, longer deal gestation times and delayed occupancy dates, even with a rise in proposal activity,” they wrote.

With Q1 deliveries down by more than a third from 2023 Q4, there’s an end to record completions with tight construction financing and costs.

Prologis estimates that the result of accumulated pent-up demand and fallen construction of new supply will mean peak 2024 vacancy in the mid-6% range, which will fall to mid-5% in 2025.

 

The flood of new capital into industrial outdoor storage has retreated from the recent boom due to today’s cost of debt. But long-term buyers and specialized investors see the next year as one filled with buying opportunities, including in high-demand port regions and up-and-coming inland markets, for those with capital access.

Significant tailwinds have bolstered inland ports and adjacent IOS space, while port markets, which saw skyrocketing prices and rising rental rates, have come back down to earth, offering buying opportunities.

“The next 12 to 24 months are going to be probably the best buying cycle that we’ve had in the IOS space,” said Ben Atkins, co-founder and CEO of Zenith IOS, an investment, development and management company focused on IOS that formed in 2021.

In recent months, inland IOS markets have seen rapidly increasing activity and corresponding rent increases, making these assets more attractive acquisition targets.

Powered by onshoring and reshoring, transportation investments and a remaking of supply lines and logistics plans, this shift adds another source of future growth and demand to a sector that saw a run-up in sales volumes, prices and interest due to booming pandemic-era e-commerce activity. It’s helping IOS outperform other parts of the industrial market, which faces a leasing slowdown and recalibration.

“I would characterize all of these IOS markets to be fairly strong compared to general warehouse,” Realterm Managing Director and Senior Fund Manager Stephen Panos said. “We’re seeing outperformance on the demand side.”

Zenith IOS conducted a study of port versus inland IOS markets and found a decline in asking rents for port markets over the last 18 to 24 months. Seattle had seen asking rents drop between 10% and 20% during that period.

At the same time, the study noted that major inland ports, such as Chicago, Atlanta and Dallas, where growth was more muted during the early Covid period, have seen anything from 5% to 15% asking rent growth. Zenith didn’t provide more exact figures from its proprietary rent database, and third-party data on the IOS market is difficult to obtain.

“Markets like New York, New Jersey and Los Angeles, had an enormous run-up during Covid, and now you’re seeing a decline from that incredible high,” Zenith principal and head of investments Alex Olshansky said.

The value of port-adjacent space in high-cost, high-barrier-to-entry coastal markets became frothy from a price perspective. During the recent period of global instability and shipping chain challenges, including the war in Ukraine, Panama Canal backlog and Red Sea tension, these port markets saw a correspondingly larger drop in rent than in markets with less of a dependence on overseas imports.

That overseas shipping anxiety has swung the pendulum back towards manufacturing and shipping investments domestically and in nearby countries. In recent months, inland IOS markets have seen rapidly increasing activity and corresponding rent increases, making these assets more attractive acquisition targets.

The nearshoring and reshoring trend has reshaped inland ports, especially those on the U.S.-Mexican border, and is expected to continue doing so. Recent data suggests U.S. investment in manufacturing was up 63% year-over-year in 2023, and foreign direct investment in Mexico spiked 200% year-over-year. It’s a shift that’s likely to evolve considerably in the next five to 10 years, Panos said, which will likely reroute and reorganize supply chains, boosting different IOS markets.

“We’re pretty bullish on it,” Atkins said. “We think that that will be a big demand driver, a big tailwind for industrial real estate, for the foreseeable future.”

Despite weakness in the trucking sector, such as the bankruptcy of Yellow Trucking, the new demand for shipping for manufacturing, construction materials and the auto industry is making up for the loss and keeping noncoastal IOS in high demand. Most of the property sold off in the Yellow bankruptcy proceedings went for high prices. Many midwest IOS markets, which have low population growth and fundamentals that in other asset classes would suggest smaller rent growth, have shown steady, strong growth, said Panos.

Joliet, Illinois, for instance, 40 miles outside of Chicago, boasts highway connectivity and the convergence of six major railroads. The city has seen consistent industrial deal activity and new spec warehouse construction.

That strength goes hand in hand with increased consumer demand and the effort by companies to meet that demand in new markets. It’s creating demand for a more robust, expansive IOS network.

“Generally what we’re seeing is expansion,” Panos said. “We’re seeing little, if any, contraction.”

Couple that with other data points that inform IOS investor decisions — Zenith looks at multifamily growth, population growth and density due to close correlations between increased need for consumer goods and e-commerce — and border markets like Otay Mesa and El Paso have benefitted. Perhaps the most significant IOS market impacted by these trends is Laredo, Texas. The port city on the Rio Grande River has become the nation’s busiest port, with numerous new warehouses breaking ground and a 3% industrial vacancy rate.

And perhaps even more valuable to IOS growth, trade between the U.S. and Mexico is much more than even the U.S. and China, Timber Hill Group Managing Partner Cary Goldman said. The flow of trucks remains relatively even in both directions, creating much more demand for parking and truck yards.

“There’s a bottleneck,” Goldman said. “You have all this product coming in from Monterrey and it probably does want to get to Austin or Dallas, or somewhere else in Texas, and Laredo is this entry and exit door.”

But while that manufacturing growth will create an outsized demand for outdoor storage space around U.S. plants and factories, that doesn’t mean there won’t also be an outsized demand for distribution and logistics real estate centered on international trade.

In fact, the decline in port market rents tracked by Zenith will likely be a massive buy signal for IOS investors. Panos agrees, seeing it as a normalization, a chance to buy high-quality collateral cheaper with less competition, not a “catching falling knives” scenario.

“We’re more bullish now on buying in the coastal markets than we ever have been because they’ve repriced,” said Atkins. “We’re actively looking in those markets. The buying opportunities in the coastal markets are stronger than ever.”

Coastal markets, the areas with the highest density and highest land values, always feel too expensive, said Panos. But while it may seem like rents have nowhere to go, they’ve historically, steadily, risen.

“I do think it’s probably closer to the beginning than the end in terms of capital appetite for the sector,” Panos said. “We think this sector is three times larger than general warehouse. It’s a large, investable, universe.”

Zenith found that the IOS market still remains decentralized, both in terms of ownership and geography. Within the roughly $300B market, the top 50 markets only comprise $100B of value.

“Opacity equals opportunity,” Atkins said. “Early movers don’t want to make it easier for others to see the opportunities.”

 

Competition in the construction-supplies sector is turning into a delivery race.

Ferguson, one of the largest plumbing and heating materials distributors in the U.S., is adding three warehouses in major cities across North America over the next two years to step up its rapid-delivery capabilities in an increasingly competitive sector serving professional contractors.

Chief Executive Kevin Murphy said contractors have gotten used to fast shipping in their personal lives and now expect speedy fulfillment for materials, from toilets and water heaters to piping, that they need on job sites. “Their expectation is framed by, ‘I want to have my sunglasses delivered same-day,’” Murphy said.

Ferguson and its rivals are vying for a bigger share of a construction market that has been buffeted by volatile demand in recent years.

Overall U.S. construction spending has grown over the past three years, driven by a wave of companies building manufacturing plants and data centers. But residential construction has slowed as higher interest rates have pushed potential buyers out of the market, and office construction has turned sharply downward as a result of the faltering return to the office by American workers.

That is putting a premium on serving contractors alongside the big firms that manage larger projects and are trying to keep their costs down through tighter controls on materials inventories.

Ferguson, which is based in the U.K. with operations solely focused on North America, has restructured its supply chain to accommodate the shift, opening smaller, highly automated warehouses closer to population centers to fill orders for pickup and delivery on a tight turnaround. The company plans to open three more of what it calls market distribution centers by the end of 2025, adding to an existing network of four of the facilities as well as 10 larger, regional distribution centers.

Murphy said the company plans to eventually place market distribution centers in all major U.S. cities.

Evelyn Xiao-Yue Gong, an assistant professor of operations management at Carnegie Mellon University, said industrial customers have grown accustomed to fast shipping from retailers such as Amazon.com and Walmart. Shoppers now expect “more of the things they need in their life all around to be delivered in a fast timespan,” regardless of whether the product is for personal or professional use, Gong said.

Ferguson’s smaller distribution centers, which range from 350,000 to 750,000 square feet, fill a gap in the company’s supply chain between its 1,750 bricks-and-mortar stores and its sprawling regional warehouses that can exceed 1 million square feet. The market distribution centers carry more inventory than stores and include areas with lockers where customers can pick up their orders at any time of day or night.

“Many of our customers are going to a customer site or a job site predawn and so the ability to come pick up materials that they need on their way to the job is hugely important,” Murphy said.

The smaller warehouses have helped Ferguson cut fulfillment costs by allowing its suppliers to deliver full truckloads at a time and to smooth out production cycles, Murphy said.

A booming market for home-improvement materials during the pandemic has faded as consumers have pared back do-it-yourself projects and shifted spending toward services such as travel. Now, more building-materials companies are competing for business from construction and remodeling professionals, which they view as a strong growth market.

Home Depot is buying roofing distributor SRS Distribution in a deal valued at $18 billion that is aimed at bringing the home-improvement retailer more business from big contractors and construction firms. The Atlanta-based company is adding four distribution centers this year to its network of 14 warehouses targeting professionals, with dedicated sites handling bulky construction materials such as lumber, insulation and roofing shingles.

Serial dealmaker Brad Jacobs, executive chairman of less-than-truckload carrier XPO, in December started a tech-focused company called QXO that plans to acquire businesses distributing construction materials.

 

 

The industrial real estate sector in New Jersey faces a significant challenge. Many new industrial spaces are slated for completion in 2024, just as tenant preferences shift because of concerns about a slowing economy that potentially complicates the market landscape.

Currently, 19.2 million square feet of industrial space are under construction in New Jersey, equivalent to roughly half the size of Central Park in New York City. Thirty-four “new class A-type buildings” are now under construction or are planned to be delivered in 2024.

These brand new, single-story industrial properties are at least 200,000 square feet to approximately 1.2 million square feet. This influx of new space, particularly concentrated in northern New Jersey, is expected to negatively affect market dynamics.

Predictions suggest that the average vacancy rate for industrial spaces could increase to 5.1% in 2024. This would be a notable rise and the first of its kind since 2012.

New wave
Middlesex County is at the forefront of this new construction wave, with 4.7 million square feet underway, akin to nearly half the total floor space of the Pentagon.

Alarmingly, 90% of this upcoming space has not yet been leased.

This additional industrial real estate that is now destined for the New Jersey market creates tremendous opportunities for tenants and purchasers, as the formerly “tight markets” start loosening the developer’s/landlord’s firm grip on pricing any available space.

However, the state’s industrial real estate developers still have a growing preference for developing larger, mega-sized properties (over 200,000 square feet, or equivalent to about two Manhattan city blocks).

These properties, which represent 67% of ongoing construction, have a low pre-lease rate of just 8%. Unless deal velocities pick up, this situation could lead to increased leasing concessions by developers as more “shell buildings” enter the market.

Turning tide
Tenant preferences are also evolving, with a noticeable trend toward mid-sized buildings, ranging from 50,000 square feet to 150,000 square feet — comparable in size to an NFL football field. This shift is challenging the leasing landscape for larger spaces.

That may potentially lead to long-term vacancies or necessitate a reevaluation of use for these larger properties from developers hoping to hit a “home run” with a single-tenant, rather than having more capital-extensive multi-tenanted or possibly repurposed developments.

Such changes underscore New Jersey’s industrial real estate market’s dynamic nature. They also signal a critical adjustment period for developers and property owners until more positive signs of increased demand for space arise, akin to 2020 and through the heights of demand that went into the first quarter of 2023.

In the face of New Jersey’s industrial real estate evolution, the emergence of new Class A space presents an unparalleled opportunity for tenants and buyers to capitalize on more favorable market conditions.