The macro environment had an exponential effect on the commercial real estate market. The impact of increased inflation and borrowing rates magnified some of the underlying fundamentals in the New Jersey market. With that said, the industrial market in the state remained strong in comparison to the rest of the country. The scarcity of developable land in prime locations for logistics prevented rental rate cuts from becoming prevalent in the overall market. There is strong tenant demand, however, corporate spending approvals have been the barrier. As spending approvals become more attainable, there will not be enough chairs (buildings) left for tenants when the music stops. I continue to believe that New Jersey is underserved from an industrial and housing perspective and am very bullish on the activity our market will see in the next 18 months.
Current Issue
Go inside the latest monthly issue of Real Estate NJ, the only New Jersey-based magazine dedicated to commercial real estate in the Garden State.
Looking forward
As you’ll read in this month’s cover story, builders and advocates see New Jersey’s new affordable housing guidelines as a good starting point after more than a decade of uncertainty, conveying cautious optimism even as they confront the financial hurdles, legal battles and political debates that have slowed housing production in the past.
Transition time
I’ve come to learn that stories in our People on the Move section are among our most popular online and in print. I understand why — relationships in commercial real estate go back years or decades in many cases, meaning there’s no shortage of interest when a friend or business partner earns a promotion or a position at a new firm. That’s especially true when it comes to developers and owners, as I was reminded earlier this year when we covered two major moves by Accordia.
Finding a balance: For Reynolds, right-sizing office space has been key to Lawrence Township redevelopment plan
The planned redevelopment of Princeton Pike Office Park in Lawrence Township will feature the mixed-use elements that are increasingly popular in New Jersey. But, departing from the trend, it will keep half its office space.
Three buildings at 3131 Princeton Pike, now known as CANVAS, will be demolished starting this fall or in early 2025, making way for 204 apartments and 17,000 square feet of restaurant and retail space. That will reduce the office space at the park by nearly 40 percent, to about 167,000 square feet, leaving three buildings that are now thriving and nearly fully leased after a recent makeover.
The right mix
It may well be decades before New Jersey’s suburban office market is no longer overbuilt. That is, of course, assuming that property owners and local officials find the type of common ground needed for redevelopment, as we try to highlight when we come across those stories. We have one such example in our latest issue.
A key step: For Prism, bringing residential property management in-house is a goal years in the making
Prism Capital Partners has reached a long-held goal of taking its residential property management in-house, a move that is already bearing fruit by providing real-time data that can boost performance, while reducing turnover and optimizing rental rates to ensure that the firm is enhancing the value of each property.
