Expert Panel Predicts Uptick for NJ’s Commercial Real Estate Market
February 11, 2014
After a half-decade of struggles following the economic downturn of 2008-09, many experts foresee brighter days ahead in the near future for the state’s commercial real estate market, according to northjersey.com. Several factors, including a surge in job growth in the area, the state’s new economic development legislation and the draw of Rutgers University as a major research institution, should buoy commercial real estate sales and rentals, the panel concluded.
The panel issued its cautiously hopeful message at a meeting of New Jersey’s chapter of NAIOP, the National Association for Industrial and Office Parks. James Hughes, a dean at Rutgers, explained the role the school would play in strengthening the state’s commercial real estate market. According to Hughes, Rutgers’ merger with the University of Medicine and Dentistry of New Jersey, along with its upcoming admission into the Big 10 athletic conference should pay notable dividends to the state’s economy. Hughes opined that the university’s changes establish it as a major research center, thus helping New Jersey lure new businesses to the state, particularly companies in the technology and biotech industries.
Additionally, recent steps taken by the state’s legislature also played a critical role in the forecasted improvement. Mitchell Hersh, president and chief executive of Mack-Cali Realty, explained that items like the Economic Opportunity Act of 2013 make the state more competitive and harder to ignore in the commercial real estate market. “To the extent that New Jersey now has this legislation as a tool in the toolkit, it’s hard for a company not to at least carefully evaluate the economic opportunities in locating in the state.”
Panelist Dennis Bone, director of the Feliciano Center for Entrepreneurship at Montclair State University, also touted Rutgers’ improvements as central to the state’s improving prospects. Bone explained that, in places like Raleigh-Durham, NC, Silicon Valley and Boston, area leaders successfully leveraged strong higher education resources in economic development projects, while New Jersey lacked similar, competitive higher education options.
Hersh stated specific optimism about Jersey City. Hersh’s company plans to “reimagine” part of Jersey City’s Harborside development with an eye toward attracting businesses in the technology, media and advertising industries.
One the keys to decision-making when it comes to buying, selling or leasing commercial real estate, in any location, is understanding the location’s economic climate, thereby helping you to understand better the strengths and weaknesses of your position as a buyer, seller, landlord or tenant. With the improving economy in New Jersey, the positions of sellers and landlords may be on the rise. Regardless of whether the market is improving or declining, it is important to utilize the services of experienced New Jersey professionals who can provide you with the relevant guidance and advice you need in your commercial real estate transaction. To get the wise counsel you need, talk to the real estate attorneys at Samuel C. Berger, P.C. Our New Jersey real estate attorneys can help you through every step to ensure you maximize your position for the best deal possible. Reach us online or call (201) 587-1500 or (212) 380-8117.
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