Warehousing space in New Jersey is limited and faces opposition but Circulate New Jersey is using education and hard data to show benefits of warehousing and logistics.
Business is booming in New Jersey in the industrial warehouse market. High demand and limited availability have led to rising rents and a competitive market. Even with a surge in new construction and the remediation of older properties, warehouse space is not keeping up with the rising demand. The state has traditionally had a strong industrial base, but recent events are further adding to the shortage of warehouse space.
“After COVID-19, many companies changed their inventory strategies from just-in-time to maintaining additional safety stock,” said David Greek, Chairman of the organization Circulate New Jersey. “At that time, there was a mad rush for real estate with more industrial space being sold and rented than in the previous 30 years.”
E-Commerce Demand and Warehousing
While some New Jersey municipalities see warehouses as a source of tax revenue and well-paying jobs for residents, many are actively working to limit the expansion of warehouses.
According to Greek, the attitude seems to be, “Not in my neighborhood.”
Many believe that warehouses increase air pollution. They view warehouses as the source of increased truck traffic leading to congestion on highways and say the constant activity of trucks and machinery is creating noise pollution.
Others object to more subjective views, like the desire to preserve historic sites, and say that warehouses can alter the character of a neighborhood, making it seem less residential and more industrial.
Circulate New Jersey
Greek is an industrial realtor, but he has chosen to lead the organization Circulate New Jersey to inform and educate the public on the numerous benefits of logistics and warehouses. He said, “Unfortunately, a lack of accurate information about the logistics industry has created confusion among some New Jersey residents.”
Circulate New Jersey plans to use hard data and specific examples to show how the logistics industry has positively impacted towns across the state. Greek looks to “have productive conversations with residents and stakeholders, so that, together, we can continue to be the life force of the state’s economy.”
Some of the examples that Circulate New Jersey points to are polluted sites, known as brownfields, in which the logistics industry has taken the lead in the environmental cleanup of polluted sites, which pose a hazard to public health and cost millions to make usable again.
“The Circulate New Jersey members have taken the initiative to clean up and reuse these sites across the state,” said Greek. Some examples of remediation sites are Steel Tech in Jersey City, 30 Cross in Ridgefield Park, CenterPoint in Linden, and the Pulaski Distribution Center in Jersey City.
The economic impact of the logistics industry, including warehouses, is significant. More than 400,000 jobs are supported by the logistics industry, with 12% of New Jersey’s private workforce tied to the logistics industry.
“The industry contributes $62.5 billion or 10% of the state’s Gross Domestic Product (GDP), noted Greek.
Circulate New Jersey’s members include Amazon, an online retailer; Prologis, a logistics and distribution real estate firm; as well as Atlantic Handling Systems and The Blau & Berg company, both logistics providers. Other members include the Shipping Association of New York and New Jersey, a trade association for shipping companies, and the Association of Bi-State Motor Carriers. The New Jersey Business and Industry Association, a state-level business association.
“When I first began working with Circulate New Jersey, my focus was on warehouses,” said Greek, “but I learned that we are part of a much bigger industry, logistics.” With the active involvement of its diverse membership, Greek plans to replace fears with facts and negative headlines with success stories for the state.
