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Real Estate Journal — Fall Preview — September 29 - October 12, 2017 — 5C
M id A tlantic
E-C ommerce
By Alessandro Conte, CCIM, SIOR, The Blau & Berg Company CRE & Technology
I
t seems more and more today that any topic of conversation will morph
is quickly gobbled up for sale or lease at record high pricing. More than 1.8 Million s/f of
E-commerce is single hand- edly changing the face of real estate, forcing older manufac- turing buildings to give way to new modern distribution centers and warehouses. On- line shopping and consumer driven, next-day shipping are forcing companies to warehouse inventory closer to densely populated areas such as Manhattan. Today’s technology allows compa- nies like FedEx and UPS to keep up with the delivery demands but they still need to be strategically located near densely populated areas like
Manhattan and Northern NJ to deliver goods to the con- sumer in a timely manner. The Newark and Elizabeth port industrial market gives those companies the ability to be nestled between multiple highways, railways, water- ways and airways to ship and receive goods quickly and efficiently. Based on all of these factors and barring any outside economic turmoil, the outlook remains bright for port-focused real estate. Alessandro Conte, CCIM, SIOR is executive vice president at Blau & Berg. n
the ever-growing e-commerce industry and was previously impossible due to the high
into a tech- nology con- ve r sa t i on . Companies like Bitcoin are rapidly g a i n i n g traction and acceptance by consum-
E-commerce is single handedly changing the face of real estate, forcing older manufacturing buildings to give way to new modern distribution centers and warehouses.
class A spec industrial space will be hitting the Newark market in 2018, comprised of three buildings ranging from 290,063 s/f, 661,539 s/f and 870,640 s/f. This type of unprecedented spec construc- tion close to the port is due to
cost of land. However, even with increasing land values, which are nearing $2,000,000 per acre in some instances, developers and tenants justify the cost provided the prop- erty has good access to major highways.
Alessandro Conte
ers as the new digital cur- rency. The mere thought of paying for goods and services or receiving payment for goods and services without the use of a national currency may seem farfetched, but we are not that far away. Cur- rently, most people rarely touch cash, as their salaries are being direct deposited into their accounts and their bills are being paid online or with credit cards. Bitcoin is just one example of a group of programmers working together to streamline an antiquated system of doing business. Themedical industry is also on the forefront of technol- ogy. Take for example IBM’s Watson computer. It origi- nally debuted in 2011 on the quiz show Jeopardy where it beat two former champi- ons winning the $1,000,000 grand prize. In 2013, Watson software system was utilized for management decisions in lung cancer treatment at Memorial Sloan Kettering Cancer Center, New York City in conjunction with health insurance company WellPoint. When we discuss the excit- ing changes to the automo- tive industry, technology once again is the main topic of conversation. Large gas guzzling engines showcas- ing torque and horsepower, sporty or all-terrain tires and vehicle stabilization, handling and ride comfort have all given way to GPS systems, self-driving cars and electric engines. Millen- nials are more interested in a car’s gadgets than the overall performance, making today’s cars seemmore like futuristic cockpits rather than driving machines. So where does technology play a role in real estate? The Newark and Elizabeth Sea- port/Airport industrial mar- ket is red hot. Any quality as- set that hits the market today
INDUSTRIAL | OFFICE | RETAIL | LAND
Specialists in Port-Related Industries Emphasizing Transportation & Logistics Over 7,200,000 SF & 90 Acres Leased or Sold in 2016
LOCAL EXPERTISE | GLOBAL REACH SHORT HILLS, NJ | WWW.BLAUBERG.COM | 973.379.6644
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