Page 39 - RE-NJ

SPECIAL ADVERTISING SECTION
™ 37
™ MARKET FORECAST
FAHRI OZTURK
SENIOR VICE
PRESIDENT
RICHARD GATTO
SENIOR VICE
PRESIDENT
DONALD M. PEPE
PARTNER, COMMERCIAL REAL ESTATE
North Jersey’s multifamily market is poised for another strong year
in 2026, with transaction volume expected to surpass 2025 — the
most active year since 2022. Cap rates will continue to stabilize, and
garden-style value-add assets will remain the preferred investment
choice. Institutional capital and bank fi nancing have returned, driving
robust liquidity. New construction rents are likely to level off as the
market absorbs recent deliveries, except in high-demand submarkets,
where rents are expected to continue rising. — Ozturk
Northern New Jersey’s multifamily market is positioned for stronger
transaction activity in 2026. Improving capital markets, anticipated
Fed rate cuts and 10-year Treasury yields stabilizing near 4 percent
should continue to boost both debt and equity liquidity. Signifi cant
dry powder accumulated during the Fed’s rate-hiking cycle is poised
for deployment, and the permanent reinstatement of 100 percnt
bonus depreciation under the One Big Beautiful Bill enhances buyer
returns. The fundamentals are aligning for a compelling investment
environment as we head into 2026. — Gatto
(201) 712-5600
fahri@cbre.com
richard.gatto@cbre.com
www.cbre.us/igtristate
250 Pehle Ave., Suite 600
Saddle Brook, NJ 07663
After a challenging period marked by higher interest rates,
rising construction costs and regulatory pressure, New Jersey’s
commercial real estate market is entering 2026 with cautious
optimism. While many large projects will remain on hold, well-
capitalized adaptive reuse and mixed-use developments are likely
to move forward, particularly where municipalities recognize the
need to preserve ratables and revitalize aging retail assets. Health
care facilities and ambulatory centers are emerging as some
of the most viable development opportunities, benefi ting from
community support and fewer entitlement hurdles. At the same
time, data center demand remains strong, though constrained
by infrastructure, utility capacity and public scrutiny. Affordable
housing mandates will continue to shape project design and
approval timelines, placing additional strain on the bottom line for
developers. Success in 2026 will favor developers and municipalities
that collaborate early, plan strategically and remain fl exible in
navigating fi nancial and regulatory realities.
(732) 568-8370
dpepe@sh-law.com
www.sh-law.com
150 Clove Road, 9th Floor
Little Falls, NJ 07424
JOSEPH SWANEKAMP
CO-FOUNDER AND VICE PRESIDENT
As in recent years, activity in 2025 did not pick up until the third and fourth
quarters amid continued uncertainty. The post-COVID pattern persisted: year-
end brought a rise in CapEx activity, but with a clear shift toward maintenance-
driven improvements and phasing larger plans into smaller, more manageable
projects.
Looking to 2026, we expect similar conditions — measured spending, selective
capital planning and a sustained focus on keeping properties fully operational.
In response, we’ve invested in advanced equipment and technology within our
maintenance services division, allowing us to work more effi ciently on active
sites and complete critical exterior improvements without disrupting tenants.
Drainage systems, parking lots and pavement remain major expenses for
commercial and industrial properties in New Jersey. We anticipate steady
demand for preventative and structural repairs as owners work to defer full
replacements and control long-term costs. At the same time, rising insurance
premiums driven by more frequent storms are pushing owners to prioritize
exterior upgrades that reduce fl ooding, minimize surface failures and
strengthen overall site resilience.
Overall, 2026 presents a promising opportunity for well-planned exterior
improvements to strengthen assets and support long-term performance.
(908) 336-8776
joe@trustswan.com
www.trustswan.com
361 State Route 31, Suite 1201
Flemington, NJ 08822