Warehouses 101

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Location is aways the key – Roads, Highways & Traffic Flow – Proximity to Airport, Railway Stations, Ports and Markets – Building Availability, Rental Rates & Taxes – Workforce Skills and Availability – Parking usually equates to one parking space per 1,000 SF

Don’t Panic, Evolve

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With property values at all-time highs, unemployment at all-time lows and the stock market still holding strong, the question on everyone’s mind is where we go from here. Everyone has their own mindset of the current commercial real estate (CRE) market and where it is headed but nobody knows or can predict what’s next. The reason is that the world is extremely different today than it has ever been.

Office: A Hot Commodity in Short Hills/Summit Area

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The Short Hills and Summit areas are continuing to flourish for the retail office sectors and as far as I can tell, these locations have been great for the investors that own them. A big part of this is because of the accessibility of these locations to Manhattan. Since Manhattan is just far enough away from the hustle and bustle, but close enough to access at any given time many companies have satellite offices and locations around the Short Hills and Summit areas.

Trade Tensions Cause and Effect

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American importers pay a significant portion of the increase and US consumers pay the remainder due to the increase on goods manufactured in China. However, China’s economy is slowing, with consumers holding back and infrastructure spending slowing sharply. This slowdown is expected to worsen as America’s tariffs ramp up. On the other hand, the United States has continued to experience vigorous economic growth, including the lowest unemployment rate since 2000.

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.