Page 19 - RE-NJ

SPECIAL ADVERTISING SECTION
TM 17
MARKET FORECAST
TM
HEATH ABRAMSOHN
VICE PRESIDENT AND REGIONAL DIRECTOR, NJ/PA DEVELOPMENT
After a somewhat challenging 2023, Rockefeller Group expects transaction volume across the industrial sector to improve in
2024. With a higher probability that inflation has stabilized, we expect interest rates to stay the same or decrease. As a result of stabilization and the potential for lower interest rates, especially toward the second half of 2024, occupiers will once again begin
to execute on their leasing strategies. In addition, investors will deploy more capital. Demand for goods delivered in a faster timeline will continue to evolve, which will help foster increased investments in technology and material handling equipment. Despite longer lease-up periods, rents will continue to stabilize with nominal rent growth. Functionality, design, location and a flight to quality as well as a greater focus on green initiatives will become more important to occupiers and institutional investors. Real estate fundamentals will prevail regardless of asset class.
(973) 448-3596 habramsohn@rockefellergroup.com
www.rockefellergroup.com
92 Headquarters Plaza North Tower, 9th Floor Morristown, NJ 07960
MITCHELL S. BERKEY
CHAIR, REAL ESTATE GROUP
The 2023 themes of interest rate and market uncertainty will continue to impact deal underwriting and execution deep into 2024. But, the tide, as it always does, will turn. On the transaction front, the expected wave of loan maturities leading to foreclosures and rescue capital-based deals has yet to materialize in significant numbers. Lenders we work with are eager to get back into the market. Equity sources have serious amounts of dry powder to deploy. We are deeply involved in the development of large-scale multifamily, mixed-use, movie studio and other projects. While some will experience pain along the way, the market will transition back into active deal mode. In expectation of pent-up demand leading to major activity by the fourth quarter of 2024, CSG has elevated key team members to leadership roles in two newly branded practice areas — Redevelopment, Land Use & Zoning and Real Estate Property Taxation & Incentives — all core elements of our overall Real Estate Group.
(973) 530-2085 mberkey@csglaw.com
www.csglaw.com
105 Eisenhower Pkwy. Roseland, NJ 07068
ROBERT S. BURNEY, ESQ.
BUSINESS AND FINANCIAL SERVICES GROUP CHAIR
The combined impact of the spike in bank interest rates to their highest level since the early 2000s, credit tightening in reaction to regional bank failures and general economic uncertainty severely impacted commercial real estate and mortgage financing transactions in 2023. Several large regional banks have taken a “wait and see” approach and essentially stopped making new money loans on investor real estate in New Jersey. Those financing transactions which did close in 2023 have typically taken much longer to complete.
While the rental market for industrial and logistical properties remains strong, the volume of purchases, sales and financings remains far below 2021/2022 levels.
Although lenders and real estate borrowers seem to be adjusting to the “new normal” and the volume of real estate financings has increased in the fourth quarter of 2023, the continued uncertainty of the economy and an impending presidential election will likely cause headwinds to a strong rebound in the first half of 2024.
The good news is that New Jersey’s commercial real estate market typically weathers these conditions better than many other parts of the country.
(908) 233-6800 x2356 rburney@lindabury.com
www.lindabury.com 53 Cardinal Drive Westfield, NJ 07090
ANTONINA CARUSO
DIRECTOR OF BUSINESS DEVELOPMENT
In 2024, JRM will revolutionize the multifamily sector, building alliances in diverse fields like corporate, finance, health care and retail. Our reach extends to sectors including broadcast, media and hospitality, showcasing our ability to deliver innovative, sector-specific solutions. This diversity positions us to create pioneering solutions that meet the specific needs
of modern industries, transcending traditional construction to craft environments that encapsulate the unique character of each sector.
Emphasizing holistic environments suited to evolving lifestyles, JRM
will take the lead in constructing mixed-use spaces tailored for today’s dynamic workforce. Our projects are more than structures — they’re sustainable environments embodying our commitment to community and environmental responsibility. We integrate advanced technology with user-centric design, ensuring each development reflects our vision of technological growth and diversity.
This year, JRM will pave the way in shaping the future of real estate, creating adaptive environments that resonate with the needs of tomorrow’s world.
(646) 372-6651 acaruso@jrmcm.com
www.jrmcm.com 390 Veterans Blvd. Carlstadt, NJ 07072