Page 27 - RE-NJ
P. 27

 pains. “Big city” problems are coming to these markets known for their affordability and quality of life after years of continuous economic and population growth. These destination markets typically offer lower tax rates and lighter regulatory burdens than many gateway markets, heightening their appeal to many businesses. Conversely, some of these attractive characteristics may limit their capacity to accommodate continued massive population inflows. These markets will remain popular for both business and residential in-migration but could
see the pace of both occur at more moderate levels.
Infrastructure spending is back among the top trends. New federal infrastructure spending provides the opportunity to replace and expand critical urban infrastructure to rebuild cities and spur new development — and address historical inequities. After years of uncoordinated local efforts, the new national programs may provide the leadership needed to transform the built environment.
The CRE sector has an important role to play in mitigating climate change. But with climate risks growing, the real estate industry must proactively address the impacts of climate change on assets. Climate change may alter the dynamics
of where people want to live and invest. In addition to the discomfort and health risks of living in ever- hotter climates, energy costs rise with temperatures, as do the risks
of power outages as more strain is placed on power grids. Extended drought conditions may limit new development because authorities may limit new hookups. Many investors rely on insurance rather than capital improvements to protect their investments, but changing investor sentiment toward climate risks may force more affirmative changes.
Pressures for greater ESG disclosure by real estate owners and investors are intensifying
due to efforts both from industry groups like NCREIF and PREA and from government regulation by the SEC. As shelter costs increasingly strain household budgets, state and
local governments are resorting to regulation to address affordability, including various types of rent control and vacancy taxes. While building owners and developers benefit from various government incentives, the industry faces
an increasingly challenging set
of environmental and economic regulations. Will certain regulations end up being counterproductive? Preceding trends highlighted several areas where private markets have been slow to fix mounting problems that the property sector has played a central role in creating, notably climate change and housing affordability. Industry groups are calling for collective
voluntary action, which is a start. But, if the growing number of regulations being considered at the federal, state and local levels is any indication, governments are getting impatient about the limited progress.
As stated earlier, many exciting
real estate deals are transforming our communities, thanks to the visionary leaders and entrepreneurial developers who are taking risks
and making calculated investments to sustainably repurpose existing and often obsolete property types. Why not plan to have your efforts recognized this spring by entering the NAIOP NJ’s Creative Deal of the Year contest. Winners to be
TM 25 announced the evening of May 18 at
the 36th Annual Commercial Real Estate Awards Gala at the Palace in Somerset, New Jersey. Entry forms will be available in early January at and the deadline for their submittal is Feb. 3, 2023. For more information, contact
NAIOP New Jersey and has led the commercial real estate development association since 1997. NAIOP represents developers, owners,
asset managers and investors of commercial, industrial and mixed- use properties, with 830 members in New Jersey and over 19,000 members throughout North America. RE
   Metro New York Capital Markets Team
Unparalleled Access. Unrivaled Outcomes.
Plaza Square
New Brunswick, NJ
Largest Sale in New Jersey ($174 Million)
Windsor at The Gramercy
White Plains, NY
Largest Sale in White Plains ($113 Million)
Jeffrey Dunne
+1 201 712 5841
Stuart MacKenzie
+1 203 352 8917
Sanofi NA Headquarters
Bridgewater, NJ
Largest Suburban Sale in New Jersey ($261 Million)
1 Lafayette Place
Greenwich, CT
New Buyer to Market ($864 PSF)
Steven Bardsley
+1 203 352 8933
Eric Apfel
+1 203 352 8951
Cortlandt Crossing
Mohegan Lake, NY
Second Largest Sale in Westchester County
Essex Mall
West Caldwell, NJ
Largest Sale in Essex County (1031 Buyer)
David Gavin
+1 203 352 8944
Travis Langer
+1 203 352 8910
Team Transaction Volume
47 Transactions
$2.55B+ Consideration*
*Includes Multifamily, Office, Retail and Land Sales

   25   26   27   28   29