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New Jersey Industrial Properties Pivot Toward Sustainability

March 3, 2023 10 Minute Read

New Jersey’s immense stock of industrial inventory is making the transition toward a renewable future, prodded by market sentiment and government mandate.
Industrial users are increasingly likely to make sustainable investments in their properties or be willing to pay a premium for properties that offer these features from the onset due to rising demand from for sustainability from customers and investors.
In New Jersey, 36% of companies that signed a warehouse lease in 2022 have made a public commitment to reduce their firms’ carbon emissions. This subset of firms signed more deals for Class A space and paid 23% more in base rent than firms with no public commitment to reducing GHG emissions.
Of the 17 million square feet of industrial inventory currently under construction or recently completed, 14% is marketed as targeting LEED certification or being built to LEED standards, compared to 2% of existing inventory.
As of July 2022, all new warehouse construction of over 100,000 sq. ft. must be able to support the installation of a solar array, a feature that could potentially result in significant cost savings while also helping investors and occupiers achieve their net zero targets.