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 …
industrial property
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 …
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.
The trajectory of the industrial real estate market in New Jersey and in most port centric markets throughout the country, has continued to push to elevated heights. The path of least resistance is “up” both in terms of price and demand.