It seems rare to have an asset class whose inventory has largely stood still for a decade or more, yet that’s been the story for the data center market here in New Jersey, as developers and users have flocked to regions with lower costs and more abundant power supplies.
That’s starting to change. As you’ll read in this month’s cover story, owners of existing data centers in the Garden State are now racing to expand their footprints amid a new surge in demand, largely on the back of Big Tech and companies tied to artificial intelligence. The addition of new supply could be somewhat incremental in the near term, given New Jersey’s high utility costs and a power grid that is already stretched, but that’s not stopping developers from trying to capture the newest requirements. The opportunity is there, experts tell us, especially in the case of users that need to be in the state due to the nature of their business or the technology they’re building.
“It’s become a bigger part of our marketing efforts now when we recognize the sites that have that infrastructure and seeing the amount of demand that sector’s throwing off,” said David Greek of Greek Real Estate Partners, whose land sites have drawn interest from tech firms, financial institutions and other would-be data center users. “That has become central to some of our leasing strategy, especially in the preconstruction phase of a project where we might be finishing entitlements or we might be doing work on the site that isn’t actually building the building.”
Our May edition also includes a profile of Bendheim, a third-generation, Wayne-based company that is a leader in fabricating glass and the systems to install it. Not surprisingly, the nearly 100-year-old business has been integral to high-profile architectural projects around the state and globally, given the growing importance of glass in everything from office buildings to public spaces. The firm’s principals note that designers and builders have come to rely more heavily on the material for its aesthetic versatility, practicality and sustainability, a trend that shows no signs of slowing.
Elsewhere in this issue, we visit with Ryan Tiger of Punia Co., the Livingston-based commercial real estate firm, who is finishing his one-year term as president of the Industrial & Office Real Estate Brokers Association. Our conversation focused largely on the value of networking, understandably so for an organization whose mission is to bring the industry together through events and programs. IOREBA continues to deliver on that goal, as evidenced by its flagship Developers Night event in late March, which drew more than 250 attendees and remains one of New Jersey’s most popular real estate events.
You can find those stories and more in the latest edition of Real Estate NJ, as we look ahead to what should be a busy stretch before the countdown to summer. There’s no denying the pain we’re seeing in some corners of the market, but New Jersey is lucky to have a deep bench of owners and service providers that have remained active and found ways to be successful despite any headwinds. I have no doubt that there’s more to come.
Until next time, thanks for reading. Enjoy the issue!
Joshua Burd
Editor
