Page 37 - RE-NJ
P. 37

SPECIAL ADVERTISING SECTION
TM 35
 MARKET FORECAST
 TM
   GREGORY J. DEMARCO, PE
PRESIDENT
The outlook for commercial real estate in 2023 is interesting. Health care and life sciences markets will likely remain strong with
the industrial sector cooling. Adaptive reuse has become a
very practical solution for many of today’s commercial real
estate properties. With post-pandemic vacancies still currently
on the market, large commercial footprints can successfully
be transformed into facilities that are in higher demand. Since
these properties exist, in some instances they can offer more sustainability by reducing the amount of materials needed to renovate. In turn, there can be a cost savings, sometimes significant, to execute. Throughout the recovery from the pandemic, many existing buildings have been transformed into different use types more reflective of current market demand. With thoughtful design and execution, efficient engineering systems for adaptive reuse projects can be achieved. However, real estate owners should recognize that not every building is a good candidate for a cost- effective adaptive reuse transformation.
(732) 438-1655 gdemarco@therockbrook.com
www.therockbrook.com
20 South Middlesex Ave., Suite B Monroe Township, NJ 08831
   ERIC GORMELEY
CEO
Buying opportunities are coming. The Fed-induced recession is here. Many loans that are now coming due have no option other than a sale because the pricing their sponsors underwrote to is long gone. I am just starting to see deals come across my desk
that have pushed their loan into extension. As construction slows because deals simply can no longer pencil out, trades and suppliers are no longer going to be as busy as they once were, and we are going to see pricing come down. All of this has not happened just yet, but in the next six months it will be in full swing. Fortunately, or unfortunately, we all needed this reset. Maybe landowners will finally come down to earth, and you can find a deal at a great basis? They may not have a choice. I believe 2023 will be a year of great opportunity.
(201) 210-8622 (o) (201) 981-0725 (c) ejg@deugen.com
www.deugen.com
720 Monroe St., Suite E416A Hoboken, NJ 07030
                 HAYTHAM HAIDAR
MANAGING DIRECTOR
Life is all about progress and evolution. Massive suburban office campuses are no longer at the forefront as a post-COVID world has revealed their continued use is insignificant. Remote working has paved the way toward a life without the rising costs of securing a physical space in an office building. In fact, according to commercial real estate firm JLL, 57 percent of suburban office space across the nation is so old it is considered “functionally obsolete.” Let that sink in.
As the housing crisis rages onward, real estate developers have realized the only way to put people back in homes is to create more of them. Hence, the suburban office parks of yesteryear are paving the way for adaptive reuse opportunities that include mixed-use spaces with apartments, townhomes, on-site amenities, retail opportunities and so much more.
Case in point — PARQ Life Reimagined. By taking an old, outdated industrial office park in Parsippany and turning it into a placemaking opportunity, we are creating a new, authentic neighborhood for the community to enjoy.
(973) 946-8904 haytham@temadevelopment.com
www.parqnj.com
700 Lanidex Plaza, Suite 7101 Parsippany, NJ 07054
  JESSE HARTY
SENIOR VICE PRESIDENT, MARKET OFFICER (NJ/NY)
At the end of 2022, the leasing and capital markets in New Jersey diverged with leasing remaining strong while capital markets stalled. Industrial vacancy in the market remains near historic lows, around 3 percent, with competition for the limited available space pushing rents higher. New Jersey typically doesn’t see a high volume of investment sale trades, so the impact on existing building prices is unknown as buyers and sellers try to understand the correct
bid. With respect to land, prices have decreased with South Jersey seeing the highest impact. Signs point to a development slowdown as construction and capital costs increase, and developers will have to navigate legislation aimed at limiting industrial development. These factors will only heighten demand for existing product. Lastly, today’s customer wants more than four walls and a roof. Customers are willing to pay more for spaces equipped with sustainable features like, solar and EV charging.
(201) 635-6035 jharty@prologis.com
www.prologis.com
One Meadowlands Plaza, Suite 100 East Rutherford, NJ 07073
  




























































   35   36   37   38   39