Brian DiPinto – Exit 8A –As we get further into 2020 the outlook for the New York and New Jersey industrial markets continues to look strong. In the 8A market …
Scott Savastano – Capital Markets – The global supply chain was rocked in January when China disclosed the Coronavirus Pandemic to the world. In February, we saw the first effects of …
Christian Benedetto – Office – As the 1st Quarter of 2020 ends with the Stock Markets in a tailspin, the Coronavirus threatens to further shut down the global economy. 16 Million people …
Karine Blanc – Multifamily – “With interest rates at historical lows, multifamily will continue to trade aggressively in 2020. The low cost of borrowing has allowed new investors easy entry to …
Overall, the commercial real estate market did well in 2019 and depending on what market you were in, it did very well.
To become a successful salesperson, one must also embrace change – it sounds simple, but as everyone knows, doing things the same way can be comforting, but not effective. If a salesperson wants to grow, they must embrace new challenges – whether it’s new technology, new products, new clients or new colleagues. I like to say, “be like a shark, always moving”, so the momentum you generate keeps you engaged.
Our New Jersey leading, family-owned and run, commercial real estate company for the past ten decades has believed that all you have is your time and your product knowledge. It is important to share them wisely with clients and build relationships large and small.
We have all recently heard in the media about the looming Tariff war between the US and China, and how it will cause a massive recession and ultimately lead to the downfall of America. To say that the assessment made by the media outlets is an exaggeration, would be the understatement of the century.
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
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.
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.
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.
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.