2A — April 11 - 24, 2014 — M ID A TLANTIC
Real Estate Journal
www.marejournal.com
Mid Atlantic R EAL E STATE J OURNAL Publisher ............................................................................. Linda Christman Publisher ................................................................................ Joe Christman Publisher/Senior Account Executive ..................................... Elaine Fanning Section Publisher ...................................................................... Steve Kelley Senior Editor/Graphic Artist.....................................................Karen Vachon Production Assistant.......................................................................Julie King Office Manager..................................................................... Joanne Gavaza Contributing Columnist........................................................... Debra Stracke Mid Atlantic R EAL E STATE J OURNAL — Published Semi-Monthly Periodicals postage paid at Rockland, Massachusetts and additional mailing offices Postmaster send address change to: Mid Atlantic Real Estate Journal, 312 Market St. Rockland, MA 02370 USPS #22-358 | Vol. 26 Issue 5 Subscription rates: $99 - one year, $198 - two years, $4 - single copy MARE Journal will not be responsible for more than one incorrect insertion Toll-Free: (800) 584-1062 | MA: (781) 871-5298 | Fax: (781) 871-5299 www.marejournal.com Correction: In the 3-28-14 Issue of THe Best of 2013 The wrong photo ran with Levin Management’s “The Developers Top Projects (Reno)” for the Best of 2013. The Mid Atlantic RE Journal apologizes for the mistake. We take full responsibility . REPORT AN ERROR IMMEDIATELY
Mid Atlantic Real Estate Journal
Andrew Merin
Plenty of Capital Flowing to New Jersey Commercial Real Estate
W
ith the first few months of 2014 in the books, we are
seeing plenty of capital flow- ing to New Jersey commercial real estate. Strong fundamen- tals across market sectors are attracting a diverse pool of in- vestors, ranging from private investors taking advantage of attractive financing rates to scoop up distressed properties, to public and private REITs, foreign entities and pension advisors seeking core and core-plus assets. INDUSTRIAL Healthy tenant demand for New Jersey industrial space resulted in 21.3 million s/f of leasing last year – an impres- sive 27.1% increase over 2012 and the second highest annual accrual in the last six years. The leasing of quality space has pushed vacancies down and net absorption up, and has boosted the asking rental rate 3.6% to $5.99 per s/f. It is no wonder, then, that investor appetite for industrial
MAREJ A DVERTISING D IRECTORY ARD.................................................................................................16A Bennett Williams .............................................................................2A BK Companies..................................................................................7A BL Companies ..................................................................................7C Business Card Directory................................................................20A Bussel Realty Corp....................................................................... IC-B BWR................................................................................................17A Classic Properties ............................................................................7C Cooper Horowitz...............................................................................9A Corfac Int’l.................................................................................. IFC-A Cushman & Wakefield...............................................................IBC-B Deerwood Real Estate Capital ......................................................11A Earth Engineering ............................................................... 5C & 14B Eastern Union ................................................................................10B Fortna Auctioneers ..........................................................................1C Gebroe-Hammer Associates ............................................................3B GFCIB...............................................................................................8A GREP ..............................................................................................10C Griffin Land......................................................................................8C Harvey Hanna..................................................................................1A Heller Industrial Parks ...................................................................4B Hinerfeld Commercial RE ....................................................... 12-13C Hinerfeld Commercial RE .............................................................20A Hutchinson Mechanical Services ....................................................6B IFMA...............................................................................................13B Jennings Auction Group ..................................................................4A Kaplin | Stewart..............................................................................2A Kearney Federal Savings ........................................................... BC-A Keast & Hood Co............................................................................16C Landmark Commercial Realty ........................................................4B Lee & Associates ..............................................................................1B LVEDC..............................................................................................3A Marcus & Millichap .........................................................................3A Mericle Comm’l. RE Svcs............................................................ BC-C Metro NJ Chapter Appraisal Institute .........................................14A NAI CIR............................................................................................4C NAI Keystone ...................................................................................9C NAI Summit ...................................................................................20A NAI Summit .....................................................................................8C NENJ Appraisal Institute .............................................................15A NJAA ..........................................................................................IBC-A NorthMarq......................................................................................11C PA DCED...................................................................................... IC-C PennCap Properties ............................................................... 2C & 8C Poskanzer Skott Architects ...........................................................13B PWC ..................................................................................................2A Rational Contracting .......................................................................2B Rocco’s Auction & Appraisals..........................................................3A RRA...................................................................................................3C SEBCO..............................................................................................3B Sheldon Gross Realty.......................................................................2B Sidney Gable Associates ..................................................................7C Singer Financial Corp....................................................................10A SNJ Appraisal Institute .......................................................... 12-13A SUBWAY ........................................................................................20A Target Building Construction .........................................................6C The Frederick Group........................................................................8C The Kislak Company .....................................................................14B The Prestige Group..........................................................................5C TriState Commercial Alliance.......................................................19A ULI Philadelphia .............................................................................6A Warner Real Estate & Auction Company.......................................4A Whitesell...................................................................................... BC-B Wolf Commercial Real Estate .........................................................7B
The views expressed by contributing columnists are not necessarily representative of the Mid Atlantic Real Estate Journal
remains strong. Cushman & Wakefield recently surveyed a large group of national in- stitutional industrial players. Seventy-seven% of respon- dents said that New Jersey is their top investment target. In fact, industrial real es- tate investment sales in New Jersey reached a record high in 2013, with $1.1 billion in deals closed (besting the pre- vious, $922 million record set in 2006 and nearly doubling the volume closed in 2012). We see no sign of a slowdown heading into the heart of 2014, provided that properties continue to come online.
OFFICE With its second-highest leasing volume since 2009 (7.9 million s/f), the New Jersey office market ended 2013 on a bright note, with stepped- up demand and rising rental rates. Despite the region’s continued struggle with space absorption, a lack of new office construction and the adaptive reuse of some existing product will help the market turn the corner in 2014. While slightly below the historical average of $1.5 bil- lion, 2013 office investment sales volume totaled a healthy continued on page 18A
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