Page 40 - RE-NJ

38 JANUARY 2023
SPECIAL ADVERTISING SECTION
MARKET FORECAST
TM
ALEXANDER J.
NARCISE, CPA
PARTNER-IN-CHARGE, REAL ESTATE AND CONSTRUCTION
The prognostication of the real estate market can be left up
to the brokers and owners in our wonderful New Jersey real
estate market. Instead, here is an update on the accounting
firm landscape. The customer demand related to our services
has significantly changed. As accountants, we’re at the center
of everything a customer does, and we credit our success to
them. With that said, Wiss has poured back capital to invest and expand our service mix. Clients are demanding services such as data analytics, financial consulting, family office services (including wealth management and insurance), advisory, recruiting, IT implementation, automation services, trusts and estate, outsourcing and a deep tax experience in the real estate industry. The goal for firms is to become a one-stop shop for all our customers’ needs. If you are not hearing these things from your firm, you should be asking why.
(973) 577-2859 anarcise@wiss.com
www.wiss.com
100 Campus Drive Florham Park, NJ 07932
VINCENT A. SPERO
EXECUTIVE VICE PRESIDENT,
HEAD OF COMMERCIAL REAL ESTATE
The CRE industry will face challenges in 2023 — interest rates have risen, high inflation will impact property valuations and banks are faced with rate compression. All of this will impact real estate investment and development, and affect basic supply and demand fundamentals.
Prior to the Fed increasing interest rates some 300 basis points, capital to fund acquisitions and developments flew freely. Today, negative leverage has popped up in CRE investing and could slow down deal flow and developments. If inflation does get tamed and cap rates remain low, CRE investors will deploy their cash and banks will need to be there for their clients. CRE is still the best hedge for inflation and despite negative leverage, we expect more money to flow into real estate.
For more than 100 years, Peapack has provided superior banking solutions for our clients. As we enter 2023, we continue to be committed to serve our clients and the communities with the greatest needs.
(908) 719-6556 vspero@pgbank.com
www.pgbank.com
500 Hills Drive, Suite 300 Bedminster, NJ 07921
KEN URANOWITZ
PRESIDENT
As the many schools of thought on the current and future state of the economy and interest rates continue to pull CRE investors in different directions, one thing remains clear: Multifamily assets are on solid ground entering 2023. Historically able to withstand the test of any economic cycle — even severe recessionary periods — New Jersey’s apartment stock is continuing to demonstrate a level of stability steeped in its most-favored CRE investment vehicle status. While there is a ‘normalization reset’ in multifamily values and rents following a pandemic-fueled era surge of both, statewide occupancies are among the strongest in the nation. And, based on my 48 years in the business with Gebroe-Hammer Associates, the latter will be fortified by renewed economic growth that will in turn drive demand, particularly among existing properties in the value-add Class B and C sector. People can work and shop from anywhere, but they need a place to call home.
(973) 994-4500 kuranowitz@gebroehammer.com
www.gebroehammer.com 2 West Northfield Road Livingston, NJ 07039
ERIC WITMONDT
CEO
Fear and uncertainty are dominating the market for real estate investment. There are several negative economic concerns which will affect the real estate industry in 2023. These concerns, despite strong balance sheets, have resulted in banks and equity sources delaying any commitments, causing illiquidity in the market.
Woodmont will continue to invest and build for long-term growth, as a holistic view of investment strategy should transcend any short-term dysfunctions in the markets, including a likely recession. Companies with strong track records and balance sheets will continue to attract capital sources. A seven-plus-year view of value creation provides a very attractive case for real estate investment today.
With long-term value creation at the heart of our operations, Woodmont will remain committed to the acquisition and development of properties in our core asset classes of multifamily, industrial and senior housing in New Jersey, Pennsylvania and Southeast Florida.
(973) 316-9400 eric.witmondt@woodmontproperties.com
www.woodmontproperties.com 100 Passaic Ave., Suite 240 Fairfield, NJ 07004