Page 26 - RE-NJ

24 JANUARY 2025
SPECIAL ADVERTISING SECTION
™ MARKET FORECAST
SEAN R. MCGOWAN
PARTNER AND CO-CHAIR,
REAL ESTATE DEPARTMENT
JEFF MILANAIK
PARTNER, NORTHEAST REGION
In 2025, we expect the continuation of the adjustment of the
commercial real estate sector due to lingering high interest rates
enacted to curtail the infl ationary environment, and the effects of
that infl ation on the bottom lines of all businesses. While the market
showed hints of life over the second half of 2024, especially when
rates ticked down, we expect the market to remain mixed overall
unless infl ation fully subsides, allowing rates to be decreased. There
will also continue to be a dichotomy in the market depending on the
property’s use. For example, we are seeing infl ationary pressure on
restaurants, which are a substantial user of commercial retail space,
driving once successful restaurants of all sizes out of business. On
the other hand, demand for smaller warehouses is likely to remain
strong, and the hot market for multifamily residential projects will
continue as the state continues to require more housing units.
(973) 577-1852
[email protected]
www.greenbaumlaw.com
75 Livingston Ave.
Roseland, NJ 07068
2024 was a challenging year as many tenants took the ‘wait and see’
approach in reference to their expansion plans. In speaking with
large corporations, retailers and third-party logistics providers,
the message was consistent — the uncertainty of the economic
environment early in the year, compounded by the presidential
election, had many companies put their plans on hold. Now that
these factors are behind us, there seems to be a sigh of relief
across the market. We have seen an increase in leasing activity
for small space midway through the year, and as we close out
2024, an increase in larger users. This trend will likely continue
on a positive trajectory in 2025. We believe the market will remain
healthy as the supply of new projects will be limited, but the
demand for space will be consistently strong. While the shortage
of developable land and regulatory constraints will challenge
many developers, at Bridge Industrial, we are excited about the
opportunities that will present themselves for infi ll development on
impacted sites. The markets will remain in balance allowing well-
positioned developers to create value for investors.
(973) 998-9890
[email protected]
One Gatehall Drive, Suite 201
Parsippany, NJ 07054
BRYAN MURRAY
DIRECTOR OF
BUSINESS DEVELOPMENT
ALEXANDER J.
NARCISE, CPA
PARTNER, REAL ESTATE
AND CONSTRUCTION
The multifamily sector holds excellent growth potential, particularly over the next few
years, as the current wave of affordable housing development comes online. This growth
is mainly fueled by more people moving to cities and smaller urban or suburban areas.
Contrary to popular belief, people are not fl eeing the core parts of metro areas for the
suburbs. In fact, housing demand remains strong in the heart of cities, demonstrating
that a future increase in migration to suburban areas isn’t guaranteed.
The multifamily housing market is adjusting its prices to create more balance, especially
in areas that might have too many units available. This should happen smoothly, without
causing major problems for the overall economy.
The retail sector seems ready for a comeback, with people returning to the classic
‘Main Street’ shopping experience, driven by a sense of nostalgia. Recently, retail sales
have picked up a healthy year-over-year increase of 6 percent, though some locales are
enjoying much better numbers than that (Florida and Texas).
At the most recent ICSC New York show, there was a lot of interest and activity around
leasing. Restaurants and entertainment venues offering in-person experiences are the
main reasons shoppers are returning to traditional shopping centers. Because of these
experiences, specifi c retail sectors — pure plays like Ulta Beauty or Lululemon, for
example — are performing well.
Data centers and related industries are expected to grow. Our cloud computing and
cyber solution clients are creating a huge demand in this already complex fi eld.
Cloud clients, like fi nancial fi rms, are looking for customized solutions to meet the
infrastructure needs of their technology.
(973) 904-0213
[email protected]
www.marchassociates.com
601 Hamburg Turnpike
Wayne, NJ 07470
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 fi rm
landscape. The customer demand related to our services has
signifi cantly 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, fi nancial consulting, family offi ce 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 fi rms is to become a one-stop shop for all our
customers’ needs. If you are not hearing these things from your
fi rm, you should be asking why.
(973) 994-9400
[email protected]
www.wiss.com
100 Campus Drive, Suite 400
Florham Park, NJ 07932