Page 22 - RE-NJ

20 JANUARY 2024
SPECIAL ADVERTISING SECTION
MARKET FORECAST
TM
BRYAN MURRAY
DIRECTOR OF
BUSINESS DEVELOPMENT
Despite economic challenges, 2024 shows promising growth opportunities across various asset classes. Interest rates are expected to decrease, creating a favorable environment for developers. The multifamily sector remains strong, especially in suburban areas, enhancing product availability. Smaller retail spaces are on the rise, with new retail centers emerging and older ones revitalizing, particularly in densely populated areas.
Although the industrial market might soften slightly, with reduced inventory needs post-pandemic, there’s an increasing demand for cold storage facilities. Office space, despite high vacancy rates, is likely to see minimal change, but repurposing old offices into multifamily or mixed-use buildings is a key trend.
With a resilient subcontractor and supply market, those ready for construction will have a strategic advantage. Overall, 2024 is expected to be stable, marking a step toward greater economic normalcy.
(973) 904-0213 bryanm@marchassociates.com
www.marchassociates.com 601 Hamburg Turnpike Wayne, NJ 07470
ALEXANDER J. NARCISE, CPA
PARTNER, 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
FAHRI OZTURK
SENIOR VICE PRESIDENT
RICHARD GATTO
SENIOR VICE PRESIDENT
In the latter part of 2023, there was a clear uptick in investor interest toward multifamily investments and this trend is expected to continue into 2024. We expect transaction volume to gradually improve in early 2024 and get a boost toward the end as rates decline. Rental growth for apartments is projected to stabilize in 2024, with additional growth expected shortly after as estimated deliveries decrease significantly. — Ozturk
Our role as advisors has never been more prominent, as we partner with our clients to improve operations, manage debt and monitor market volatility
to create the optimal marketing strategy. We anticipate the Fed’s continued focus on taming inflation, coupled with the delay in economic data and the historical correlation between GDP and the 10-year Treasury, to push interest rates lower throughout 2024. This appears to be a bottom for valuations; investors seeking major distress may miss out on the opportunity to purchase quality assets in strong locations at today’s elevated cap rates. — Gatto
(201) 712-5600 fahri@cbre.com richard.gatto@cbre.com
50 Pehle Ave., Suite 600 Saddle Brook, NJ 07663 www.cbre.us/igtristate
ERIC WITMONDT
CEO
Despite the stock market hitting daily “all time” highs, fear and uncertainty continue to dominate the market for real estate investment. There are several negative economic concerns that will negatively impact the real estate industry in 2024. These concerns have resulted in banks and equity sources delaying most capital commitments, causing further illiquidity in the market.
Woodmont’s long-term investment approach will allow us to 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, hospitality and senior housing, in New Jersey, Pennsylvania and South Florida.
(973) 316-9400 eric.witmondt@woodmontproperties.com
www.woodmontproperties.com 100 Passaic Ave., Suite 240 Fairfield, NJ 07004