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.

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.

Summer Pick Up vs. The Summer Slump

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By Alessandro (Alex) Conte, CCIM, SIOR

Historically speaking the summer months tend to slow down in the commercial real estate world as schools are closed, children are home and vacations become the priority.