Page 27 - RE-NJ

SPECIAL ADVERTISING SECTION
™ 25
™ MARKET FORECAST
DONALD M. PEPE
CHAIR, REAL ESTATE
PRACTICE SECTION
KENNETH J. SHEEHAN
COUNSEL
Overall, 2025 looks like a good year for the New Jersey real estate
market. We should see a revival in activity across several sectors.
Pent-up demand combined with improved market conditions, falling
interest rates and an infl ux of foreign investors looking to take
advantage of a closer alignment in U.S. real estate valuation will
encourage lenders to turn on the faucet on construction fi nancing,
providing developers the funding they need to clear a pipeline
of approved projects that remained stalled throughout 2024. A
further catalyst to growth can be anticipated in the newly released
‘Fourth Round’ affordable housing requirements. We should see
greater cooperation between developers and local governments as
municipalities look for ways to satisfy the present need for 60,000 to
80,000 affordable housing units and developers with an eye toward
2026 and beyond look for new opportunities.
(732) 568-8370
[email protected]
www.scarincihollenbeck.com
331 Newman Springs Road, Building 3, Suite #310
Red Bank, NJ 07701
Commercial real estate is no longer simply offi ce buildings and strip
malls — if it ever was. Today, the fourth dimension of commercial
real estate includes the integration of data, technology and access
to the fundamental need — power. Today’s commercial real estate
includes leases on the ocean fl oor; conversions to high-end, high-
tech, high-energy-use facilities; and the development of data
centers, artifi cial intelligence server farms and 3D manufacturing
locations where once the highest and best use was refrigerated
warehouse or distribution facilities. Today, the watchwords for a
successful real estate development are no longer simply ‘location,
location, location’ — they are instead ‘power, water and fi ber,’ the
sooner, closer and more robust, the better.
(973) 646-3292
[email protected]
www.genovaburns.com
494 Mayor Kenneth A. Gibson Blvd.
Newark, NJ 07102
JENNIFER PHILLIPS SMITH
CO-CHAIR,
REAL PROPERTY GROUP
In 2025, commercial real estate developers, while weighing the risks
associated with uncertain future interest rates, will nevertheless be
pushed to act in reaction to changing statutes and regulations.
The New Jersey Department of Environmental Protection’s pending
Resilient Environments and Landscapes (REAL) regulations
likely will be adopted in mid-2025, further ushering in tightening
environmental restrictions from New Jersey’s Protecting Against
Climate Threats or NJPACT program. Ready or not, developers in
coastal areas, particularly those wishing to build multifamily housing,
must consider submitting applications this year.
The same is true for developers holding liquor licenses for future
deals. The state’s 2024 liquor licensing reform legislation will push
them to put pocket licenses in service before those licenses expire —
and the associated investments evaporate.
Multifamily housing is in demand, but faces complications. Our
clients are pursuing approvals to have shovel-ready projects when
lending loosens. However, municipalities and developers are
weathering the uncertainty of how — or if — the 2024 affordable
housing legislation will be implemented statewide in 2025.
(973) 596-4500
www.gibbonslaw.com
[email protected]
One Gateway Center
Newark, NJ 07102