Page 38 - RE-NJ

36 JANUARY 2023
SPECIAL ADVERTISING SECTION
MARKET FORECAST
TM
ROBERT HOLLAND
PRESIDENT
JASON PUCCI
CEO
We have been through many market cycles and, if there is one certainty in real estate, it is change. For the last several years until mid-2022, investors were in bidding wars to purchase properties, especially multifamily, at low cap rates. Change came with rising inflation, interest rate increases and uncertainty that slowed the market. However, we continue to do business as we have since 1906. We are out knocking on doors, building relationships and providing our clients with market information, guidance and service when they need it.
The investment real estate market is resilient and relatively healthy.
As stock market volatility and economic uncertainty continue, more investors are seeking the safe refuge of investment real estate. The multifamily market continues to be the strongest commercial real estate market and the multifamily rental market remains strong. Other types of investment and commercial properties in desirable locations also remain in demand.
(732) 750-3000 info@kislakrealty.com
www.kislakrealty.com
100 Woodbridge Center Drive Woodbridge, NJ 07095
BARBARA J. KOONZ
PARTNER, ENVIRONMENTAL DEPARTMENT
CHAIR, ENERGY, RENEWABLE RESOURCES & SUSTAINABLE DEVELOPMENT PRACTICE GROUP
The installation of solar renewable energy generation systems on commercial, residential and government-owned properties should increase in 2023 due to the infusion of generous tax benefits from the recently adopted Inflation Reduction Act of 2022 (IRA) and New Jersey’s continuation of robust subsidies in the form of a new solar renewable energy certificate program. The IRA, which includes almost $400 billion in tax incentives, is the United States’ largest financial commitment to fighting climate change by reducing carbon emissions and is expected to be a game-changer for renewable energy investment. Under the IRA, solar generation or energy storage projects may be eligible for an investment tax credit (ITC) in excess of up to 50 percent of the project’s cost. Significantly, the IRA permits investors that do not have a tax appetite to sell their ITC to third parties. This is particularly attractive to real estate investment trusts (REITs), public entities and nonprofits that have not been able to benefit from the ITC.
(973) 577-1894 bkoonz@greenbaumlaw.com
www.greenbaumlaw.com 75 Livingston Ave. Roseland, NJ 07068
GREG LALEVEE
IUOE LOCAL 825 BUSINESS MANAGER
IUOE GENERAL VICE PRESIDENT
The International Union of Operating Engineers Local 825 closed out 2022 on a high note of full employment for its nearly 8,000 members. Looking ahead, it sees continued demand for its operators.
Fueled by a $12.3 billion infusion of infrastructure funding, Local 825’s heavy equipment operators are building, repairing and maintaining roads, rails and bridges while continuing to work on water mains, cleaning brownfields and prepping for wind energy projects to come.
The Hoboken Connect project, which broke ground in October,
will restore the city’s historic transit terminal, build infrastructure upgrades and construct new development that will provide nearly 10,000 construction jobs over the life of the project. Major highway widening has been approved for New York’s Route 17 and New Jersey’s Atlantic City Expressway. In Hudson County, a $10.7 billion New Jersey Turnpike expansion leading to the Holland Tunnel is on the drawing boards.
Our members are usually first on a job, preparing each site for the construction to follow. Each member is highly trained and experienced and ready to start work “day one.” (973) 671-6900 glalevee@iuoe825.org
www.iuoe825.org
65 Springfield Ave. Springfield, NJ 07081
STUART MACKENZIE
VICE PRESIDENT
ERIC APFEL
VICE PRESIDENT
Multifamily and industrial are still the preferred asset classes for institutional and private investors alike. Investors who were largely on the sidelines during the second half of 2022 will be motivated to deploy capital in 2023. All-time high rents in New York City, coupled with rising mortgage rates, pose continued challenges for first-time homebuyers and we anticipate sustained renter demand for suburban multifamily product. Given its proximity and seamless connectivity to New York City, northern New Jersey is well-positioned to capture this demand. Transit-oriented developments (TODs) should benefit as companies continue to call employees back to the office, compelling renters to seek shorter commutes.
Cap rate expansion over the past several months due to rising interest rates has created an excellent investment opportunity for those seeking quality assets at a highly attractive basis. Stabilization of the debt markets will give many investors the confidence to get more aggressive with their underwriting, which will lead to greater deal activity.
(203) 352-8917 stuart.mackenzie@cbre.com eric.apfel@cbre.com
50 Pehle Ave., Suite 600 Saddle Brook, NJ 07663 www.cbre.us/igtristate