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.
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No summer slowdown for CRE, but a time to reflect, recharge and reset before a busy fall
While there is a sense of uncertainty in the market due to rising interest rates and the fear of a possible recession on the horizon, we have not seen a slowdown in deal activity; however, for the first time in years, it does appear that clients and others in the industry are taking a minute to breathe to get a better sense of necessary market adjustments. Since the onset of COVID, we have not had a normal summer in that the last two years have been nonstop deal flow year-round. This year, for the first time in a long time, we are seeing clients take a week or two to go on vacation and enjoy time with family. This is completely normal, and quite frankly, much needed.
Interest expense is going up. Your taxes might be too.
The rising interest rates will directly affect real estate businesses operating across all asset classes. The ability to deduct interest expense for tax purposes has helped to alleviate some of the tax burden for business owners. However, the Tax Cuts and Jobs Act of 2017 (“TCJA”) imposed limitations on the deductibility of interest expense for certain taxpayers. For tax years beginning on or after January 1, 2022, some of the adjustments that increased the allowable deduction of interest expense for certain taxpayers have sunset. Accordingly, the sun-setting of these provisions may result in significant increases in taxable income for leveraged businesses subject to these rules. Understanding how the changes to the rules may impact your business now will enable you to properly manage your business’s cash flow and avoid any tax surprises next April.
Greenbaum, Rowe, Smith & Davis LLP
Greenbaum, Rowe, Smith & Davis LLP represents local, regional and national clients active in the New Jersey market, including developers, REITS, private equity investors, property owners, lenders and governmental entities. We provide strategic counseling and litigation support related to the acquisition, development, financing, leasing, operation and disposition of multifamily, mixed-use, commercial and industrial real estate.
Murphy Schiller & Wilkes LLP
MSW represents a wide range of clients, including major national and international developers, national and local lending institutions, institutional investors, family offices, landlord and tenants and other owners and developers of real property. Our boutique nature and multidisciplinary model has allowed the firm to represent a diverse array of clientele, from the largest real estate development and private equity firms in the country to smaller family offices based in New Jersey.
Connell Foley LLP
With more than three dozen attorneys practicing in our Real Estate and Land Use Group, Connell Foley has the depth and experience to represent the full range of businesses and individuals with commercial real estate interests in New Jersey. From major national developers to financial institutions, private investment funds, public entities and business owners, our clients are sophisticated real estate investors involved across the complete spectrum of property types. Recognizing clients come to us with some of the most exciting and unique development opportunities, we devise tailored plans, navigate regulatory hurdles and facilitate the successful completion of our clients’ projects.
CSG Law
CSG Law’s industry-leading clients include a wide spectrum of private- and public-sector owners, developers, investors, lenders and users of all real estate asset types. From international publicly held investor/owners, to national, regional and local prominent owners, developers and lenders, to Fortune 100 users of real estate, our private-sector clients seek CSG’s strategic counsel for their complex and often high-profile projects. Our public-sector clients — including energy and utilities providers, municipalities and other governmental entities — look to our experienced team to help achieve their unique goals and objectives.
Fox Rothschild LLP
Our client base is comprised of institutional and non-institutional real estate developers and owners, including many of the leading local and regional developers, such as the Hampshire Companies, Prism Capital Partners, Lincoln Equities Group, Vision Real Estate Partners, Woodmont Properties, Lennar Corp. and its affiliates, MCB Real Estate LLC, Mack-Cali Realty Corp., Camber Real Estate Partners, Acadia Realty Trust, The Birch Group and Senlac Ridge Partners.
Wilentz, Goldman & Spitzer PA
As a full service law firm for national corporations, developers and investors handling development, redevelopment, construction, borrowing, leasing and management of large multifaceted projects, we integrate our redevelopment, land use, transactional and environmental experience to provide cost-effective services. We are tuned in to the economics of every project and clients’ business goals as well as the legislative and political landscape impacting the real estate community. Clients benefit from our track record of success working with governmental and regulatory agencies to obtain the incentives necessary to complete complex transactions and create beneficial public-private partnerships.
