Lance Bergstein
CEO
Lincoln Equities Group
How do you feel about the market?
The macro environment had an exponential effect on the commercial real estate market. The impact of increased inflation and borrowing rates magnified some of the underlying fundamentals in the New Jersey market. With that said, the industrial market in the state remained strong in comparison to the rest of the country. The scarcity of developable land in prime locations for logistics prevented rental rate cuts from becoming prevalent in the overall market. There is strong tenant demand, however, corporate spending approvals have been the barrier. As spending approvals become more attainable, there will not be enough chairs (buildings) left for tenants when the music stops. I continue to believe that New Jersey is underserved from an industrial and housing perspective and am very bullish on the activity our market will see in the next 18 months.
Did you learn anything new about your business (or the industry) in 2024?
I am not sure I necessarily learned anything new, but 2024 certainly made us focus on the entrepreneurial and adaptive skillsets that my team employs. Lincoln Equities as a business has always been able to pivot quickly when market conditions may steer the business in new directions. Today, our new acquisition pipeline is heavily weighted toward multifamily development rather than industrial. I was reminded in 2024 that good ideas require contrarian thinking and to not be afraid to stray from the norm.
How quickly (or slowly) do you expect the lending environment to improve as expected rate cuts take hold?
It really depends on how you define improve. Today, there is liquidity in the lending environment for the right project with the right sponsorship. There is a lot of dry powder out there especially on the debt fund side of the business. I think rate cuts will generate more transaction volume, which will require lenders to get more aggressive not just on rates but on other business terms. I do not think this happens overnight but will evolve a bit more gradually.
Besides the capital markets, what is a major challenge that the industry still faces?
There is a tremendous shortage of ‘attainable’ housing. Today, there are no adequate programs in New Jersey that incentivize the private sector to deliver attainable housing. I think it is extremely important for the government and the private sector to work together and figure out how to alleviate this major issue. It is something I am very focused on figuring out, but the economics need to make sense.
What can the state or federal government do to help?
There needs to be dedicated programs that make the economics of attainable housing development profitable. It could come in the form of financing, tax abatement or a guaranteed exit where the state buys the housing. Obviously, this is hard without a surplus, but some serious thought and collaboration between the private and the public sector needs to occur.
Where do you see opportunity outside the Garden State?
Without giving away too much of our secret sauce, we are very focused on markets with an abundance of natural resources. I think in the long run as these resources become scarcer, individuals will place higher value on living in these locations.
How is technology helping your business these days?
We are able to analyze deals much more efficiently. We can extract and dissect data in a fraction of the time with AI applications that we could historically. I think this trend will continue. On the management side of the business, we have seen increased tenant satisfaction by implementing technologies that allow for smoother facilitating of administrative and operational tasks.
Getting to know you
Favorite Jersey diner
Colonial Diner, Lyndhurst
Your newest hobby or interest
Racing cars — it is not new, but outside of work and family it is my primary focus.
Favorite day trip or vacation spot
South of France
TV show, movie or book you’d recommend
‘When I Stop Talking, You’ll Know I’m Dead’ by Jerry Weintraub
If I weren’t in commercial real estate, I’d be…
Racing cars full time
