The industrial real estate market in New Jersey continues to thrive due in no small part to the rapid growth and evolution of e-commerce retailing. Last-mile distribution facilities – from which goods are stored and delivered directly to the consumer and local retail outlets – are becoming more reliant on well-located and well-operated warehouse space. This is particularly evident in core Garden State submarkets, where demand for space proximate to transportation networks, the Port of New York/New Jersey and New York City is stronger than ever before.
One significant change resulting from the e-commerce boom and evolving next-day/same-day delivery demand can be found at the intersection of the retail and industrial commercial sectors. As the line between these categories continues to blur, and as the dramatic industrial resurgence in New Jersey continues unabated, multi-tenant industrial property owners increasingly are relying on expert third-party management firms that specialize across all property types to accommodate a growing number of retail-focused tenants.
Consider Rutgers Industrial Center in Piscataway, where Levin Management Corporation (LMC) has served as manager for more than 30 years. The latest three leases at this five-building, 535,000-square-foot industrial/warehouse complex include a shoe wholesaler (103,350 square feet) that is expanding its New York City-based operations; a discount apparel wholesaler (110,000 square feet) in need of additional space to accommodate long-term growth; and a retailer (77,000 square feet) seeking increased distribution space, also due to that company’s sustained and anticipated business growth.
Rutgers Industrial Center’s prime location and superior highway access drove interest in all three lease opportunities. The Middlesex County property sits in the heart of I-287 industrial corridor, just five miles from Exit 10 of the New Jersey Turnpike. In short, it offers a storybook example of the kinds of tenants and uses seeking space in what is quickly becoming a go-to market for small and mid-size distribution requirements.
LMC has a distinctive perspective when it comes to operating properties within this “new” world. We are well known for our 66-year history of serving as a single-source expert for leasing and managing retail properties. We are equally effective when applying the same hands-on, comprehensive management skills across all property types, including industrial assets. Our landlord-focused approach has always been the key to our clients’ progress and is even more valuable as the rise in e-commerce retailing transforms the industrial real estate landscape.
Today, more than ever before, property owners across the board are looking to partner with third-party managers to help them navigate an increasingly sophisticated and complex environment – one that is rich with opportunity. Experienced firms that offer in-house construction along with traditional property management and leasing capabilities are poised to help industrial owners establish, maintain and improve the competitive positioning for their assets.
Robert Carson is Executive Vice President of Levin Management Corporation, a full-services commercial real estate services provider based in North Plainfield, N.J. He can be reached at [email protected] or (800) 488-0768 x 282.
