Port Trends to Watch
The Port of New York and New Jersey (Port of NY & NJ) remains the busiest port on the East Coast and a critical gateway for global trade. Supported by six container terminals and an extensive cargo rail network, the port serves one of the world’s wealthiest and most densely populated consumer markets. The Port of NY & NJ provides access to more than 60 million consumers within a 250-mile radius, representing approximately one-third of the nation’s GDP.
The Port of NY & NJ maintains its competitive advantage through a diverse network of global trading partners, including China, India, Italy, Germany, and France. This broad mix of import and export activity helps mitigate the impact of localized economic disruptions, reinforcing the port’s position as the East Coast’s leading container gateway.
The Port of NY & NJ maintained a steady pace through the first half of 2026 after volumes surged in March, making it the nation’s third-busiest port. Volume in June increased 11.9% year-over-year (YOY) to 769,422 twenty-foot equivalent units (TEUs), bringing year-to-date (YTD) volume to 4.4 million TEUs. Loaded exports through June totaled 711,527 TEUs, a slight 0.1% decrease YOY, while imports dipped 0.2% to 2.2 million TEUs.
As trucking rates continue to rise, occupiers may increasingly prioritize locations closer to the Port of NY & NJ to reduce drayage costs and improve supply chain efficiency. Supporting this trend, the Port Authority has launched several infrastructure initiatives aimed at accommodating future growth, including a landmark agreement with the U.S. Army Corps of Engineers to evaluate deepening navigational channels to 55 feet and a major redevelopment of the northern entrance to the Newark-Elizabeth port complex.
The Port Region Warehouse and Distribution Market
The Port of NY & NJ serves one of the most concentrated and affluent consumer markets in the world. The Port Region is one of the most mature industrial submarkets in New Jersey and has experienced rising demand for space as cargo volumes and ship sizes have grown in response to heightened consumer demand. The submarket offers tenants a strategic location with close proximity to the New Jersey ports and the state’s busiest thoroughfares. As a result, the Port region is the largest submarket in Northern New Jersey, with a warehouse inventory of 84.1 million square feet (msf).
Leasing activity in the Port Region remained healthy during the first half of 2026, totaling 1.9 msf, a 9.8% increase YOY. Demand was driven by eight new leases exceeding 50,000 square feet (sf), including four within Class A warehouse and distribution properties. Ready Warehousing & Logistics signed the largest new lease of the second quarter, committing to 92,000 sf at 100 Lincoln Highway in Kearny, while iCube Global expanded its presence at 169 Pulaski Street in Bayonne with an additional 78,142 sf after signing a 255,069-sf lease in 2025. Tenant demand also remained evident through steady renewal activity, led by HelloFresh’s 352,100-sf renewal at 60 Lister Avenue in Newark. As a result, YTD renewal volume increased 24.5% YOY to 832,008 sf.
Despite steady leasing demand, activity was not sufficient to offset nearly 1.0 msf of new vacant space entering the market. As a result, the vacancy rate increased 110 basis points quarter-over-quarter to 12.5%, contributing to negative net absorption of 907,709 sf in the second quarter. Despite rising vacancy, competition for modern warehouse space remained healthy, with Class A taking rents increasing 7.1% from 2025 to $21.69 per square foot (psf). The Port Region also maintained the highest average asking rent in New Jersey at $18.85 psf, representing a 13.0% premium over the overall market average.
