The Industrial and Office Real Estate Brokers Association of the New York Metropolitan Area (IOREBA) welcomed more than 350 guests at its 25th annual Developers Night recently, where a panel of commercial real estate professionals discussed the changing real estate landscape in New Jersey.
The evening kicked-off by honoring Mr. Geoffery Schubert, senior vice president with CBRE, as a Special Lifetime Member.
Mr. Schubert has been in the commercial real estate business for more than 50 years and an IOREBA member since 1968. He served as president of IOREBA from 1981 to 1982.
It was echoed by all speakers that there still remains growth in all areas with an evidenced increased growth in multi-family and industrial product.
There has been substantial rent growth in the industrial market and an unprecedented amount of capital that wants to by industrial product, especially with the growth of e-commerce.
The panel also remarked on the state’s multifamily boom noting they have seen any sign that this market will slow down.
Gus Milano, president and CEO of Hartz Mountain Industries, noted that his multifamily portfolio has high occupancy and noted that his newest development in Jersey City experienced significant leasing activity just a week after opening.
“Nothing in this market is slowing down. There is excess supply of multifamily in the short-term, but there is confidence it will be absorbed,” he commented.
In respect to the office market, panel moderator David Simson Vice Chairman/COO-NJ, Newmark Grubb Knight Frank said that there have been “a luminous amount of office building sales in the past year to 18 months—substantially more than the previous year.”
Kevin Welsh, Senior Vice President, CBRE Capital Markets, suggested “it is a capital-intensive asset class where we will see more and more repositioning.”
The office building of years’ past is changing with improvements including wide-open spaces and collaborative environments. Office campuses will bring more retail and residential to bring communities and tenants together.
“New Jersey has a great real estate market and it is a good thing to create dynamics and different spaces,” commented Sam Morreale, Founder & Managing Partner, Vision Real Estate Partners.
Todd Anderson, Principal, EVP Acquisitions & Leasing Director, The Hampshire Companies, is doing just that at a Metropark office campus where he has plans for a mixed-use development to include office, retail, a hotel and residential space.
“With all the focus on millennials, boomers want dynamic space as well, and don’t want to be treated as less,” he commented.