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Real Estate Journal — Spring Preview —April 27 - May 10, 2018 — 17A
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N ew J ersey B roker By Matthew Leonelli, Sheldon Gross Realty, Inc. View from New Jersey: Not all commercial real estate is created equal
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s a company that has operated successfully in New Jersey for
in immediate proximity to population centers – as close as possible to where they’ll be delivering – demand for urban industrial space is vigorous. At Sheldon Gross Realty, we’re confident that New Jersey’s commercial real es- tate market will continue to flourish. Being equidistant fromBoston andWashington D.C., our state offers many businesses an ideal strate- gic location, complete with ports and a road network that continues to expand
and improve. These attri- butes, coupled with immedi- ate proximity to New York City’s roaring growth has us optimistic about the future of Garden State business and real estate. As we help our clients take advantage of this favorable market landscape, Sheldon Gross Realty contin- ues marketing each property to achieve the best possible results. Matthew Leonelli is a sales representative for the NJ offices of Sheldon Gross Realty, Inc.
rates rise significantly, this sector of the market should remain strong. The industrial market has certainly maintained its strength, with prices con- tinuing to climb. Supply has remained extremely limited while demand always seems to be increasing. The boom in Manhattan and the other boroughs has led to a tremen- dous number of industrial owners and tenants flocking to New Jersey in search of more affordable options. Many of the companies we’ve
worked with recently have been displaced in New York by residential redevelop- ment, while those that are fortunate enough to own are electing to sell their proper- ties in the city, in favor of purchasing or leasing in New Jersey. Another increasingly im- portant factor in the indus- trial sector is the large num- ber of companies providing “last mile” fulfillment ser- vices for Amazon and other online retailers. Because these businesses need to be
t h e p a s t 5 8 y e a r s , there’s not much Shel- don Gross Realty, Inc. hasn’ t ex- p e r i e n c e d within our home state’s
Matthew Leonelli
real estate sector. And we’re pleased to report that, even with our long history of in- volvement in the New Jersey commercial real estate mar- ket, we’re currently enjoying one of the busiest periods since the company’s incep- tion. Sheldon Gross Realty suc- cessfully markets properties across all building types. Our presence in every sector has hammered home for us the reality that not all com- mercial real estate is created equal. Land development in New Jersey remains costly and time-consuming. From the initial purchase and the ob- taining of approvals, right up to completion of construction, the entire process often takes years. That said, however, the overwhelming demand for new space and insti- tutional grade investment properties enables those with patience and the economic means to enjoy great success in our market. In the office market, overall growth appears flat outside of primary office hubs. The recent success of the Bell Works project in Holmdel is an example of tenants flock- ing to buildings that offer outstanding amenities and a quality workplace envi- ronment for employees. As this “flight to quality” trend continues, most secondary office markets will remain stagnant. In the medical office sector, we’re experiencing lengthy periods of vacancy, with many doctors preferring to purchase or lease space in a building where they can build equity. With real estate invest- ments, cap rates continue to be historically low across all sectors. From institutional grade to small private invest- ments, demand for properties is robust – and until interest
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