Page 24 - RE-NJ

22 JANUARY 2025
SPECIAL ADVERTISING SECTION
™ MARKET FORECAST
HEATH ABRAMSOHN
VICE PRESIDENT AND REGIONAL
DIRECTOR, NORTH CENTRAL
DEVELOPMENT
LANCE BERGSTEIN
CEO
O
After a transitional 2024, Rockefeller Group expects transaction
volume across the industrial sector to improve in 2025. As a result
of further market stabilization and the potential for lower interest
rates, occupiers are likely to execute on their leasing strategies.
With longer lease-up periods, there will be greater concessions
and rents will remain fl at. Demand for goods delivered in a faster
timeline will continue to evolve, which will help foster increased
investments in technology and material handling equipment.
Vacancy rates should decrease as product is absorbed along with
minimal construction starts. In addition, investors will deploy more
capital providing further liquidity within the market. Functionality,
design, location and a fl ight to quality will continue to be important
to occupiers and institutional investors. Real estate fundamentals
will prevail regardless of asset class.
(973) 448-3596
[email protected]
www.rockefellergroup.com
92 Headquarters Plaza, 9th Floor
Morristown, NJ 07960
2024 was a transition year for the commercial real estate industry.
There was an uptick in leases, transaction volume and cuts in interest
rates. 2025 is primed to be an active year — the demand for industrial
space and housing is really strong. New construction starts slowed the
past few years, exponentially charging the demand. It is going to be
really interesting to see the pace of absorption. It is still unclear what
will happen to cap rates, but I think as core buyers enter the market
again and create a competitive landscape, they should experience
some compression. New Jersey remains one of the most active
markets in the country and it’s exciting to be additive to it.
(201) 460-3440
[email protected]
www.lincolnequities.com
One Meadowlands Plaza, Suite 803
East Rutherford, NJ 07073
MITCHELL S. BERKEY
CHAIR, REAL ESTATE GROUP
ROBERT S. BURNEY, ESQ.
BUSINESS AND FINANCIAL
SERVICES GROUP CHAIR
2024 was a year of uncertainty — both economic and political — at the
local, regional, national and international levels. On the plus side, U.S.
economic indicators show strength, stock market gains continue and
interest rates are on a downward path. Still, the wait and see approach
continues to hang on — albeit with a more optimistic and hopeful view
for 2025. As the new administration in Washington, D.C., takes shape and
fl exes its muscles, and the New Jersey gubernatorial primaries establish
fi nalists for the Statehouse, 2025 will come into focus. Owners will
continue to face the challenge of refi nancing otherwise healthy assets
coming out of sub-4 percent loans into a still unfriendly rate environment.
Lenders will have choices to make on two fronts: addressing those
maturing loans and their commitment to making new loans. The glass
remains half-full as there is no shortage of equity for the ‘right deal’
on both a one-off and programmatic basis. The CSG Law real estate
group continues to add talent to deepen one of the strongest real estate
benches in the region and is strategizing with clients in preparation for
the volume of deals and projects to come in 2025.
(973) 530-2085
[email protected]
www.csglaw.com
105 Eisenhower Pkwy.
Roseland, NJ 07068
The commercial real estate community enters 2025 with signifi cant
uncertainty. The increase in mortgage demand prompted by the Fed’s
rate cuts in autumn 2024 has not dramatically affected the supply of
credit as lenders continue to closely scrutinize borrowers’ economic
prospects for 2025 and beyond. The inability to refi nance mortgage
balloon maturities at par poses risk to developers.
The short-term impact of the election remains unclear. Republicans’
expressed intent to make certain temporary provisions of the 2017
Trump tax cuts permanent should encourage real estate investment.
Conversely, the imposition of signifi cant tariffs could infl uence the
Fed’s monetary policy and dampen the likelihood of further rate
cuts. Also unclear is whether the new administration can tame the
troublesome infl ation of the past few years. Continued political
uncertainty in Europe may continue to negatively affect the investment
in and leasing of logistical space.
Hopefully, this uncertainty will be clarifi ed by mid-2025.
(908) 233-6800 x2356
[email protected]
www.lindabury.com
53 Cardinal Drive
Westfi eld, NJ 07090