For the foreseeable future, it seems industrial will remain a hot market segment especially in areas that have high demand and limited land supply. As our society becomes more dependent on technology, so does the need for distribution centers and warehouses. It is important for big companies such as Amazon and Zappos, to have footprints in areas to service densely populated urban areas such as NYC.

The online e-commerce shopping boom sure has put a dent in retail and commercial real estate space as a whole, but is the damage getting worse or can industrial real estate bounce back and remain solid? The next downturn in CRE will be catalyzed initially by a stagnant economy and low growth, followed by multiple years of mild-to-escalating recession, credit re-rating, and demand for higher risk premiums by capital providers. Income growth will slow or go negative in the medium term, cap-rate compression will cease, and finding new tenants will be very difficult. With this happening, we will also witness aging demographics and subtle changes of consumption baskets and lifestyle, that revolutionize the format of office and retail.

Rapidly Rising Residual Rental Rates

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Industrial rental rates have skyrocketed in urban areas due to the boom of e-commerce. The demand for third-party logistics, also known as 3PLs have increased substantially. This has driven up rental rates in the industrial market. The industrial market in New Jersey alone has increased 11% year over year. The question of sustainability of rental increases emerges.

New Supply Chain Disruptors Affecting Retail

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It seems these days, there are growing numbers of supply chain disruptors. From erratic thunderstorms to tornadoes, hurricanes and droughts; natural disasters still pose the greatest threat to retail disruption. As these uncontrollable events happen, we feel the effects throughout the economy which directly translates to retail.

The Cost of Tariffs

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On May 10, 2019, talks with China ended abruptly; we saw the market tumble more than 600 points. This past Friday, President Trump responded by adding a 25% tariff on $200 billion of Chinese goods, substantially increasing the tariffs from their prior 10%.

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Flexible Office Space: NJ’s Next Workspace Trend

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Flexible Office Space: NJ’s Next Workspace Trend Workspace designs are the most underestimated determining factors of success. Companies always take the best of measures to ensure a highly attractive and …

The Blau & Berg Company has served the New Jersey market area for more than 85 years as a full-service boutique firm that specializes in industrial brokerage. Recent successes have grown their market share to include the tri-state area and increased revenue over 600 percent in just a few years.

Why Millennials Are Changing Their Preferences For Housing

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There have been endless articles written on how millennials are changing the demand for housing, but not enough articles have been written on why. Millennials showing a preference for apartments and urban areas has dramatically increased the demand for multi-family units, and developers are racing to meet the demand.

Opportunity Zones

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A newly created tax incentive program established by the Trump administration in Fall 2017 called The Tax Cuts and Jobs Act of 2017 (TCJA) offers substantial tax breaks to business and real estate investors who are willing to make long-term investments in low-income disadvantaged communities across the country referred to as Qualified Opportunity Zones (QOZ).

A Closer Look at the Demand for Cold Storage

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One of the most thriving trades in the New Jersey-New York Metropolitan area is the food industry. The area is home to over 20.3 million people, nearly 7 million more than the second place Los Angeles metropolitan area in the United States. It has a GDP of over $1.735 trillion, $73,133 GDP per capita and an area of over 13,318 square miles. That is a lot of mouths to feed each day. Due to such density, there is an incredible demand for space to store the food.

The Rise of Online Grocery Shopping

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The power of consumers is directly driving the food industry to move away from highly processed foods with a longer shelf life, to temperature-sensitive perishable food products. This requires an adjustment in the food supply chain. In addition, when it comes to supermarket shopping, the rise of the millennial generation and their focus on online shopping means that the days of multiple driving trips to the supermarket per week may be a thing of the past.