January 2023

M id A tlantic Real Estate Journal — January 2023 Forecast — 11D


2023 F orecast

he outlook for 2023 seems to be mixed, with many calling for a brief By Matthew Cofone, PE, Rock Brook Looking ahead: Economic improvement in the second half of 2023 T

distribution facilities. For corporate office space, the choice of companies seems to be settling at a hybrid workplace approach. Once rates are stabilized, many office occupants are likely to renew their focus on more collaborative work - places with more amenities and located in live/work/play environments. The sector seems ready for a move away from the open office bench - ing solution which has been popular in the recent past. Life Sciences has been through a major boom re -

gionally and nationally for several years, but new proj - ects for the incubator and startup spaces will slow in 2023 due to a pull back of investor capital. Healthcare will likely con - tinue to be “recession proof”. medical office space could continue to see a boost as in - vestors look for safer avenues for investing and health sys - tems look to continue a move toward decentralized care to satisfy patient preferences of convenience. There is a good chance for some collaboration between the two players. It

“The economic climate has dampened new project builds in the industrial and retail sectors.”

recession or a soft land - ing in the first half of the year. The eco - nomic cli - mate has dampened new project builds in

remains to be seen whether the push and pull of the de - mand across the various sec - tors in the industry will help loosen supply chain struggles experienced since the start of the global pandemic, along with overall costs to build.

But we’re looking for an economic improvement in the second half of 2023 to be accompanied by a push to relieve pent up demand in some sectors. Matthew Cofone is executive VP at Rock Brook. MAREJ

Matthew Cofone

the industrial and retail sectors with major players rethinking their physical space and redundancy in PARA focuses on three key projects into 2023 train stop at the heart of the downtown, a beautiful ma - rina for boat travelers, public transportation that can take you anywhere throughout the state and major highways that pass through the region.” A major project on the draw - ing board is known as “Gate - way,” sitting on 54 acres of developable property just south of Smith Street at the Route 35 Victory Bridge. Redevelopers consider the Gateway site a prime parcel. It sits on the water near the Cornucopia Cruise Line. It’s just a 10-minute walk to the NJ Transit station, as well as the Smith Street retail corridor. Gateway is also just steps from the planned Borinqueneer Park and what will be an extended riverfront walkway and park. In short, says renowned ar - chitect Dean Marchetto, the location is ideal for “place mak - ing,” and has “opportunities for affordable housing, jobs, and social empowerment.” Many proposals have been put forth, taking advantage of the easy access of this property to the city’s downtown and waterfront. Another opportunity is cre - ating a transit village at the Perth Amboy Train Station. The blocks between Market Street and New Brunswick Av - enue and between the NJ Tran - sit tracks and Maple Street represent a rare opportunity to redevelop many vacant and city-owned parcels downtown. The timing is ideal. NJ Transit is earmarking nearly $50 million to overhaul the Perth Amboy Train Station, built in 1927, listed on the National Register continued on page 12D continued from page 8D

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