We’re always excited to look ahead to a new year in New Jersey commercial real estate. First, however, please join us in looking back at our top stories of the year, including our most-read items and a few editor’s picks. Happy New Year and best of luck!
Indicators for the future of the New Jersey rental market
Inflation has cemented itself as the main concern for Americans over the past year and for good reason. The United States has seen costs rise across every single sector, but few have grown faster than housing. The state of New Jersey holds the distinction of having the sixth-highest rents in the nation and has seen an astronomical rise in those rents with annual growth rates peaking at nearly 33 percent in May of 2022.
Cheaper by the dozens: N.J. Legislature considers bill proposing unlimited restricted liquor licenses for annual fee
The New Jersey Legislature is considering a bipartisan bill (S355/A3710) that establishes a restricted beer, wine and cider license that would allow restaurants, for a small annual fee, to sell certain alcoholic beverages to their patrons. In an effort to counteract the diminution in value of already-owned liquor licenses, the proposed bill provides tax credit under corporate business tax and gross income tax for loss in value to certain alcoholic beverage licenses. Despite this tax credit, there is sure to be a significant decrease in the value of already-owned liquor licenses. This loss in value is likely to in turn diminish the value of the properties underlying those licenses.
Navigating a challenging market with Meridian’s Russ Drebin
Up until the last few months, this year was great. Rates were relatively low, and I was proactively advising clients to take advantage of the market while it was tame. However, since the market has taken a turn, it has been even more important to advise clients in a way that is transparent and focused on their specific goals. Knowing your client and knowing what their goals are will allow you to help them during a time when the market is great, and conversely at times when the market is not so great.
Building up: The future of warehouse design in urban markets
The ever-growing demand and need for prompt fulfilment is forcing businesses and developers to react to the market with more warehouse space that is closer to the consumer. When development footprint in the middle of major U.S. cities is high in price and in low supply, you must build up, not out — this has been the answer in the commercial and residential markets for decades.
