North NJ CRE Sees Best Year Since Recession
A report released this week focused on the commercial real estate market in Northern New Jersey stated that, “sales of North Jersey commercial property – industrial, office, multifamily and retail – jumped to the highest total since before the recession”. The report went on to say that sales totaled $5.7 billion, which was an increase of 37% compared to 2013. The total number of sales came in at 1,630 which represents a 66% increase.
Bergen, Passaic, Hudson, Essex, Middlesex and Union counties each saw the highest sales numbers since 2006, experts say in large part due to the rise in costs that have been felt in Manhattan which are leaving businesses looking immediately to the West for a more cost-effective option. With a surplus of space available, New Jersey has stepped up to facilitate the growing needs.
The report also addressed a rise in demand for warehouse space in densely populated areas to accommodate for the increased need for distribution space, which is being brought on by the rise of online shopping (see Rise In E-Commerce Means New Industrial Needs). This trend was a bright spot on the industrial side of the report, which saw industrial sales overall in New Jersey decrease by 13%. That being said, that 13% drop is in comparison to 2013 which saw the highest industrial sales numbers since 2007, making the 2014 total of $1.5 billion in industrial sales the second-highest yearly total since 2007.
The winning-est market in terms of improvement however was the Northern New Jersey office market, which saw an increase of 142% in sales totaling $1.4 billion.
The Garibaldi Group helped to inflate those sales numbers thanks to their 15 property portfolio sale for Maersk, as well as having sold over 200K SF of office space in the state and over 500K SF throughout the country.
To read more on the report visit NorthJersey.com.