Page 21 - RE-NJ

SPECIAL ADVERTISING SECTION
TM 19
MARKET FORECAST
TM
STUART A. JOHNSON, AIA
PRINCIPAL
The New Jersey and regional multifamily, mixed-use markets are still strong in 2024 due to local and regional drivers, continued income growth and a robust job market. New Jersey continues to attract market innovators such as Nokia Bell Labs to its cities and downtowns, creating job opportunities and new residents.
Systemic barriers to homeownership, particularly in a high interest rate environment, will create more long-term renters. We also continue to see a growing population of renters by choice to better meet today’s lifestyle that favors greater convenience and flexibility.
Many of our clients build for long-term growth and are currently active through land acquisition, rezoning or repurposing of distressed office and commercial assets, entitlements and permitting. Affordable housing will continue to be a driver, however the NJEDA’s Aspire Program and new pending legislation may offer incentives and better streamline the approvals process.
(609) 397-9009 sjohnson@minnowasko.com
www.minnowasko.com
80 Lambert Lane, Suite 105 Lambertville, NJ 08530
2 Gateway Center, Suite 1700 Newark, NJ 07102
ROBERT HOLLAND
PRESIDENT
JASON PUCCI
CEO
We have been through many market cycles and the economic changes that began in 2022 continued throughout 2023 as interest rates rose and then began to fall and inflationary pressures increased and then began to subside. These changes impacted the market with the number of sales and sales volume decreasing to levels well below the 2021 and 2022 peaks. 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. As economic uncertainty continues, investors continue to seek 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 relatively strong given the ever-increasing demands for housing. 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
ANTHONY MARIN
BROKER/OWNER
As multifamily investors and property managers, we anticipate 2024 to be a landscape shaped by evolving economic factors and shifting tenant demands. In multifamily, young professionals and smaller households are increasingly being drawn to modern, amenity-rich rentals in urban areas, emphasizing the importance of lifestyle features and work-from-home capabilities.
Tenant preferences are evolving with a growing emphasis on flexible living spaces, smart home technology and environmentally conscious designs. These trends are shaping how properties are developed, marketed and managed, underscoring the need for multifamily properties to adapt to these changing demands to remain competitive.
This may be a little premature, but we anticipate the impact of artificial intelligence (AI) in the multifamily sector is substantial in 2024. AI can impact property management through predictive maintenance, enhance tenant engagement with AI-powered services and assist in making more data-driven investment decisions. Properties that integrate AI to improve operational efficiency, conduct sophisticated market analysis and provide a personalized tenant experience will likely be at the forefront of the multifamily real estate market, attracting forward-thinking investors and tech-savvy tenants.
(973) 771-5170 anthony@mig.properties
www.mig.properties 112 Jabez St., Suite 100 Newark, NJ 07105
SEAN R. MCGOWAN
PARTNER AND CO-CHAIR, REAL ESTATE DEPARTMENT
With no immediate signs of high interest rates substantially subsiding,
we anticipate that 2024 will likely see a continuation of the transition
the commercial real estate sector began experiencing in earnest during
2023. Since the cost of credit continues to impede future profitability, transactional volume has decreased, including in sectors that saw intense price increases during and after the COVID-19 pandemic. Accordingly, price stabilization has become commonplace, not just in transaction prices but also in asking prices, and it is quite possible that we will see noticeable price reductions from the lofty highs of recent years. Likewise, vacancy rates in the red-hot industrial sector have started to increase, especially in tertiary markets and in certain subclasses, placing further pressure on pricing. While many believe that the second or third quarters of 2024 will bring interest rate reductions from their recent high levels, the question will be whether any decreases will be substantial enough to offer those who need to refinance their commercial loans the ability to do so without substantial diminishment to their property’s cash flow. If the answer to this is “no,” those with available cash will likely see some excellent buying opportunities over the coming 12 months, as the market meets its new reality.
(973) 577-1852 smcgowan@greenbaumlaw.com
www.greenbaumlaw.com 75 Livingston Ave. Roseland, NJ 07068