Page 36 - RE-NJ

34 JANUARY 2026
SPECIAL ADVERTISING SECTION
™ MARKET FORECAST
MICHAEL BULDO, AIA
PRINCIPAL AND COO
THOMAS F. CARROLL III
PARTNER AND CHAIR,
LAND USE DEPARTMENT
This year, architectural strategies will align closely with value creation, every square
foot will deliver measurable utility and market appeal. Layouts that maximize
functionality without compromising aesthetics, particularly in high-density urban
environments where space is at a premium. Flexible fl oorplans, multiuse spaces and
design solutions that enhance both livability and long-term asset performance.
Balancing density with livability is critical for sustaining long-term demand. Architects
will integrate shared spaces that foster social interaction such as landscaped
courtyards, communal lounges and mixed-use amenities while maintaining privacy
and comfort for residents. This approach creates vibrant, connected communities that
feel inclusive and adaptable to evolving lifestyle needs.
Amenities beyond traditional offerings that enhance lifestyle appeal like wellness-
focused features (fi tness studios and meditation rooms), work-from-home
infrastructure (coworking lounges) and experiential spaces (rooftop gardens and
entertainment zones) will strengthen tenant retention.
Locations near mass transit will continue to be prime investment zones. Designs with
connectivity in mind integrating bike storage, EV charging stations and pedestrian-
friendly layouts that complement transit access and support sustainable mobility
trends.
Smart building technologies will become standard, enabling energy optimization,
predictive maintenance and seamless tenant services. Features like app-based access
control, IoT-enabled appliances, and automated climate systems will reduce operating
costs while elevating the tenant experience. This tech-forward approach positions
properties for long-term competitiveness.
(201) 795-1505
mbuldo@mhsarchitects.com
www.mhsarchitects.com
1422 Grand St., 5th Floor
Hoboken, NJ 07030
We expect the commercial real estate market in 2026 to be driven by continued
demand for multifamily housing, mixed-use projects and data centers, among
other uses. Our clients also continue to be busy developing, buying and selling
industrial properties, especially last-mile distribution facilities. While various
factors affecting steel, aluminum and other building materials infl ated costs in
2025, market conditions are improving as pricing stabilizes, interest rates go
down and investors return to the market.
The market for multifamily housing and mixed-use projects should remain
strong in 2026. As a result of the landmark legislation reforming New Jersey’s
affordable housing framework, known as “A4,” municipal fair share obligations
for a 10-year compliance period were established in 2025, and fair share
plans designed to meet those obligations were drafted and evaluated by the
Affordable Housing Dispute Resolution Program. The A4 proceedings have
generated the obligation to rezone for many thousands of new homes, mostly
in the multifamily and mixed-use sectors. This will undoubtedly increase the
supply of both market-rate and affordable housing throughout New Jersey as
the new developments are approved and, ultimately, constructed. There is no
doubt a shortage of opportunities to build single-family homes, largely due
to the scarcity of vacant, developable land throughout the state, presenting a
challenge to planners and governmental offi cials, especially as redevelopment
opportunities arise. Demand for new retail and other nonresidential uses can
closely track the construction of new housing, so the year ahead should present
many opportunities.
(609) 734-6336
tcarroll@hillwallack.com
www.hillwallack.com
21 Roszel Road
Princeton, NJ 08543-5226
EDWIN COHEN
PRINCIPAL PARTNER
CHRISTOPHER J. COILEY
FIRST SENIOR VICE PRESIDENT
CRE REGIONAL MARKET PRESIDENT
We are extremely bullish on trophy, Class A offi ce product heading
into 2026. Today, “Class A” has a different connotation than it once
did. It ties to more than just the beautifi cation of a building and
how great it looks from the street. It’s where you can walk to, not
where you can drive to. It’s the lifestyle amenities integrated within
the building and the immediate surroundings. We truly believe the
old adage “location, location, location” is more relevant than ever.
Properties that deliver the whole package will perform very well
in both the short term and the long term. That said, this is not an
environment of “easy” dealmaking. Every transaction has its own
nuances, yet across the board they mandate a fl exible, market-
reactive approach. The key to success as an owner today — beyond
offering top-level, high-demand product — is staying power, which
requires deep resources and good partners.
(201) 567-2711
edwin.cohen@prismpartners.net
www.prismpartners.net
310 Kingsland St.
Nutley, NJ 07110
As 2026 unfolds I remain cautiously optimistic about the commer-
cial real estate market in New Jersey. With interest rates trending
lower, many companies tightening their return-to-offi ce policies and
ecommerce continuing to have success, the real estate market should
continue to ride the tide. There doesn’t seem to be a shortage of ac-
cess to capital, and we’ve defi nitely seen an uptick in commercial real
estate activity during the past 12 months (acquisition, development and
refi nances). Specifi c asset classes that continue to fl ourish are in the
multifamily, industrial and retail sectors. Offi ce continues to be a bit
of a question mark, but we’ve defi nitely seen some positive traction on
that front. Multifamily and industrial sectors continue to lead, driven
by persistent housing demand and robust logistics growth. However,
challenges remain: regulatory uncertainty, evolving environmental
restrictions and the need for resilient infrastructure are top concerns for
developers and investors. The fl ight to quality persists, with tenants and
buyers prioritizing modern amenities, energy effi ciency and strategic
locations. Technology integration — especially AI and data centers — is
reshaping asset selection and operational effi ciency. While risks such as
refi nancing hurdles and policy shifts linger, those who adapt to changing
fundamentals and leverage granular market intelligence will be best
positioned to thrive in this dynamic landscape.
(862) 596-1120
ccoiley@valley.com
www.valley.com
70 Speedwell Ave.
Morristown, NJ 07960