www.marejournal.com
Real Estate Journal — Spring Preview —April 28 - May 11, 2017 — 7C
M id A tlantic
I ndustrial
By Michael F. Schipper, The Blau & Berg Company E-Commerce: The driving force fueling demand for industrial real estate
I
of the 6.5 million square feet of industrial product under construction in northern and central New Jersey to have been pre-leased (Source: Real Estate NJ, “Rent Growth, Preleasing Continue in N.J. Industrial Market During Q1”, April 7, 2017). De s p i t e s u c h r e c o r d growth, the region seems to have been well prepared for the rapid influx of cargo reaching its shores. With the Bayonne Bridge raising project well underway and reaching nearer to comple- tion, the Port Newark Con-
tainer Terminal (PNCT) has undergone its own $500 million dollar redevelopment project expected to increase container capacity to 2.3 mil- lion TEU’s by 2019, which has already allowed the ter- minal to handle a record level of container volumes without disruption during the first quarter of 2017 (Source: Ya- hoo Finance, “Port Newark Container Terminal Handles Record Volumes Immedi- ately Following Upgrade to Navis N4 Terminal System”, April 20, 2017). It is no question that de-
mand for industrial space will see further growth into 2017 as consumers continue to shift from shopping at traditional brick-and-mortar stores to various e-commerce venues. As app driven pur- chases gain in popularity it is suggested that the rate of growth in e-commerce trans- actions will rise faster than years prior, which will only increase the demand to store products sought after by the consuming public. Michael F. Schipper is a senior associate at The Blau & Berg Company. n
n today’s “app” driven society, the world has become more connected
to average 4.7% throughout New Jersey (Source: NJBIZ , “Industrial Real Estate Sec- tor Momentum Continues”, April 4, 2017). While a vast amount of this absorption can be attributed to tradi- tional big box outfits, there is a tremendous amount of small to mid-size firms vy- ing for industrial product as it becomes available, most of which can attribute their growth to the shift in con- sumer preference to online shopping. In terms of product that is still pending delivery, figures point to nearly 58%
than ever be- fore. In mere m i n u t e s , goods and services can be scheduled digitally to b e t r a n s - ferred from one edge of
Michael Schipper
the earth to another. The ease at which a consumer can coordinate the purchase (and return) of everything from toothpaste to living room furniture from the palm of their hand has led to tremen- dous growth in demand for goods to be made available in “point, click, ship” fash- ion, pushing aside the need for traditional brick-and- mortar stores. In 2016, the US posted an 8.1% figure for overall e-commerce sales, an increase of over 15% from the year prior (Source: U.S. De- partment of Commerce, 4th Quarter 2016E-Commerce Sales Report). As could be assumed, the demand to store these prod- ucts has skyrocketed, result- ing in historically high levels for the industrial real estate sector. For Q1 2017, reports show industrial vacancy rates The Blau & Berg Co. names Walsifer a shareholder SHORT HILLS, NJ — The Blau & Berg Company , a prominent commercial real estate brokerage firm in the New Jersey and Tri-State area since 1932, has named Christian Walsifer, CCIM , a shareholder in the company. He has also been promoted to senior director. “Christian is an invaluable member of the team and a trusted partner,” said Jason Crimmins , president. “His deep industry knowledge and proven leadership skills make him a great fit for this ex- panded role in the company.” Walsifer joined The Blau & Berg Company in 2006 with a Chemical Engineer- ing and Finance degree from Rutgers University and has consistently been one of the company’s top producers. As senior director and principal, he is responsible for all phases of real estate negotiations, cost analyses and landlord/tenant relationships. n
B B
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
Made with FlippingBook Online newsletter