January 2026

This digital edition of Mid Atlantic Real Estate Journal features exclusive deal coverage, expert commentary, and regional market intelligence for today’s commercial real estate professionals. Flip through stories shaping the future of the industry.

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Squires arranges off-market sale of 10 properties with 540 units Kislak sells Union County, NJ multifamily portfolio for $90 Million

ISSUE HIGHLIGHTS Volume 38, Issue 1 January 2026 3-15A 2026 FORECAST HORVATH & TREMBLAY SELLS 3 MID-ATLANTIC RETAIL PROPS.

making an effort to position our company for future success by diversifying geographically and improving the product type we own and manage. New Jersey will always be the center of our universe and we are excited about future development and acquisitions here, but we also feel it is healthy to have a pres- ence in other markets as well.” Squires said, “The sale of the portfolio represents an extraor- dinary value-add opportunity for the purchaser to acquire over 500 well-maintained units in some of the strongest rental markets throughout northern NJ. Most of the properties had been owned and managed by the original developer’s family across three generations.” The portfolio includes a mix of studio apartments, one- bedroom units and two bed- room units in suburban garden apartment complexes through- out Union County, all with on-site parking and a variety of amenities. All of the prop- erties are well located among an abundance of commercial offerings and convenient mass transit options to and from NYC and throughout northern and central NJ. MAREJ associate director Natalie Hershey ,VP Patrick Cun - ningham and senior analyst Mac Ritchie of Berkadia DC Metro secured a $41.953M Freddie Mac acquisition loan on behalf of the buyer. The property’s occupancy was fully stabilized at the time of the sale. “The Richmond metro contin- ues to demonstrate exceptional resilience, supported by a di- versified economy and strong employment fundamentals,” said White. “Triton Glen pre- sented investors with a rare opportunity to acquire a newly delivered asset in the heart of the innovative Innsbrook Cor- porate Campus – one of VA’s largest employment hubs – while seizing on growth poten- tial as first-generation leases roll post-stabilization.” MAREJ

NION COUNTY, NJ — The Kislak Company, Inc. an-

nounced the recent sale of a 10-property mul t i fam- ily portfolio t h r o u g h - out Union County for a total of $90 million. The portfolio includes the following properties. 1. Sunrise Village Apartments, 145 Jerome St., Roselle Park – 275 units 2. 127-135 East Fifth Ave., Roselle – 48 units 3. Chilton Manor, 212 Westfield Ave., Elizabeth – 39 units 4. Cheryl Gardens, 408 Chest- nut St., Roselle – 32 units 5. Riverside Apartments, 145 Dock St., Rahway – 30 units and 1 commercial space 6. 123 West First Ave., Roselle – 30 units 7. Astoria Manor, 854 West Grand St., Elizabeth – 24 units 8. Michael’s Manor, 143-147 East Fifth Ave., Roselle – 24 units 9. Briar Lane Apartments, 222 East Westfield Ave., Roselle Jeff Squires

16A

CONTRACTORS/ SUBCONTRACTORS

27-29A

Union County, NJ Portfolio

Park – 23 units 10. White Rose Apartments, 214-216 East First Ave., Roselle – 14 units Kislak’s managing director Jeff Squires arranged the off-market sale on behalf of the seller and longtime client, Landmark Companies of Keasbey, NJ and its princi- pals. Squires also procured the purchaser, which was not disclosed. The sale is among

the largest multifamily sales in New Jersey in 2025 according to data available from CoStar. Landmark’s principals Mi- chael Gottlieb and Eric Harvitt completed the trans- action as part of their effort to reposition Landmark. The sale was part of an exchange of some noncore legacy properties into a more recently developed residential community in Ra- leigh, NC. They said, “We are

NEW JERSEY/ PENNSYLVANIA

Section B

UPCOMING CONFERENCES FEB 19, 2026 NJ CRE FORECAST CONFERENCE MARCH 2026 SNJ CRE FORECAST CONFERENCE For speaking & sponsorship info., please contact: Lea at 781-740-2900 or lea@marejournal.com

Berkadia arranges $65M financing of newly built multifamily community in Richmond, Virginia

RICHMOND, VA — Berka- dia has arranged the $65 million sale and $42 million financing of Triton Glen, a newly built, 250-unit class A multifamily community locat- ed in the Innsbrook submarket

Directory

2026 Forecast..........................................................3-15A Retail Development...................................................16A Financial. .............................................................. 17-19A Owners, Developers & Managers..........................20-29A People on the Move...................................................30A CRE Organization’s Events Calendar ............................ 32A CIRC Organization . ...................................................IBC-A Southern New Jersey..............................................7-10B Southeastern PA...................................................12-17B NJPA People on the Move..........................................20B www.marej.com

Triton Glen

of Richmond. Senior managing director Drew White , managing direc- tor Carter Wood and direc- tor Cole Carns of Berkadia Richmond represented the seller, Silver Hills , a multi- family real estate firm with projects throughout the East

Coast and Midwest. Seminole Trail Management, based in Charlottesville, acquired the property for $65 million. In conjunction with the acqui- sition, senior managing director Patrick McGlohn , manag- ing director Brian Gould , senior director Hunter Wood ,

Inside Cover A — January 2026 — M id A tlantic Real Estate Journal

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Diversification does not guarantee profits or protect against losses. All real estate investments provide no guarantees for cash flow, distributions or appreciation as well as could result in a full los of investment principal. Please read the entire Private Placement Memorandum (PPM) prior to making an investment. This material is not to be considered tax or legal advice. Please speak with your attorney and CPA before considering an investment. All offerings discussed, if any, are Regulation D, Rule 506c offerings. Past performance is not a guarantee of future results. Securities offered through FNEX Capital, member FINRA, SIPC.

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2A — January 2026 — M id A tlantic Real Estate Journal

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M id A tlantic R eal E state J ournal Publisher, Conference Producer ..............Linda Christman VP, Conference Producer .............................Lea Christman Editor/Graphic Artist ......................................Karen Vachon Contributing Columnist. ........NAIOP– New Jersey Chapter Mid Atlantic R eal E state J ournal ~ Published Monthly Periodicals postage paid at Hingham, Massachusetts and additional mailing offices Postmaster send address change to: Mid Atlantic Real Estate Journal 117 HMS Halsted Dr., Hingham, MA 02043 USPS #22-358 | Vol. 38, Issue 1 Subscription rates: 1 year $99.00, 2 years $148.50, 3 years $247.50 & $4.00 single issue - plus postage

Dan Kennedy

Anne Strauss-Wieder

New Supply Chain Partner Report Shows Positive Impact of NJ’s Warehouses and Distribution Centers AST BRUNSWICK, NJ — A new report re- leased by The Center for Advanced Infrastruc- ture and Transportation (CAIT) at Rutgers Univer- sity highlights just how criti- cal New Jersey’s warehouse and distribution centers (key components of the logistics industry) are to the state’s economy and prosperity. The data shows that existing ware- houses and distribution cen- ters support over 764,000 direct jobs and more than 1.35 million total jobs in the state. “The logistics industry is an impressive economic engine for New Jersey,” said Dan Kennedy , CEO of NAIOP , the Commercial Real Estate Development Association – New Jersey Chapter. “Often lost in the conversation are the economic contributions made by the existing warehouse and distribution centers that E

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create an eye-opening num- ber of jobs and contribute an irreplaceable amount of fed- eral, state and local taxes that support critical services for all New Jersey residents. With all the state and local discussions going on about warehouse development and supporting infrastructure, we feel the public deserves to know the truth - warehouses and dis- tribution centers make a sub- stantial economic contribution to New Jersey’s economy that no industry can match.” “While we have always known how impactful it is to New Jersey, this report shows just how much critical links in the logistics industry like warehouses and distribu- tion centers contribute to the state’s economy,” said John J.

Nardi, President of the Ship- ping Association of NY and NJ. The analysis is the first com - plimentary report undertaken in conjunction with the 2025 Economic Impact Assessment of the New York-New Jersey Port Industry. The Center for Advanced Infrastructure and Transportation (CAIT) at Rutgers University undertook this study on behalf of NAIOP, the Commercial Real Estate Development Association and in partnership with the Ship- ping Association of New York and New Jersey. The report focuses on exist- ing warehouses and distribu- tion centers within the state, and the role they play in main- taining efficient and effective supply chains. In addition continued on page 10A

Firmly Rooted in the Law and in the Community We are well grounded in every facet of real estate law, from acquisition to construction. We are committed to serving the needs of our clients and our communities.

Contact: NEIL A. STEIN • nstein@kaplaw.com 910 Harvest Drive, Blue Bell, PA 19422-0765 • 610-941-2469 • kaplaw.com Other Offices: • Cherry Hill, NJ 856-675-1550 • Philadelphia, PA 215-567-3120 Kaplin Stewart Attorneys at Law

M id A tlantic R eal E state J ournal ’ s Mid Atlantic 2026 F orecast

R eal E state J ournal ’ s

M id A tlantic Real Estate Journal — January 2026 — 3A

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Brian Anderson Cushman & Wakefield p. 15A

Matthew Erickson, Esq. McKirdy, Riskin, Olson & DellaPelle, P.C. p. 4A

Robert Holland The Kislak Company, Inc. p. 10A

Randy Horning, SIOR, MSRE The Clinical Group p. 9A

Wayne B. Howell, P.E., C.E.M. MG Engineering p. 12A

Darren Lizzack, MSRE The Clinical Group p. 9A

Jonathan Marks The Clinical Group p. 9A

Nicholas Minoia Diversified Properties p. 14A

Jon Moore Woodmont Properties p. 6A

Michael Mullin Integrated Business Systems, Inc. p. 5A

Thomas Olson, Esq. McKirdy, Riskin, Olson & DellaPelle, P.C. p. 4A

Austin Pittman Lawson p. 7A

Jason Wolf WCRE | CORFAC International p. 8A

4A — January 2026 — 2026 Forecast — M id A tlantic Real Estate Journal

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2026 F orecast By Thomas M. Olson, Esq. & Matthew J. Erickson, Esq., McKirdy, Riskin, Olson & DellaPelle, P.C. New Jersey office tax assessments impacted by declining market and declining ratios

ew Jersey continues to lead the nation as the State with the

what used to be some of New Jersey’s property tax “crown jewels”, large single tenant cor -

erty tax assessment on many of these large complexes. Those complexes, along with even many smaller office buildings, have been getting squeezed by the fact that many office tax assessments in New Jersey were set during revaluation processes that occurred before the effects of COVID hit the market. The result is office building assessments make up a disproportionate amount of the assessed tax base in many different municipalities that have not performed a municipal-wide tax revaluation since 2020. This is made significantly

worse by a New Jersey phe- nomenon that could be called a “ratio squeeze”. New Jersey has a methodology, known as “Chapter 123”, that attempts to equalize assessments by calculating and then apply- ing the ratio between a mu- nicipality’s assessments and the true market value of the property. This is done by tracking the sales in a mu- nicipality and applying them to the assessments of those sold properties. Currently, dramatic increases in values from sales in the residential and industrial markets, com- pared against their pre-2020

low assessments, have driven many municipalities’ ratios significantly lower. This situ - ation is exacerbated because, unlike some other States, tax assessments in New Jersey are subject to a single ratio in each town for all types of real estate, even though different types of real estate appreciate and depreciate at different rates over time. For example, an office build - ing that previously had an assessment of $64,000,000 may find its “equalized” value raised drastically year-over- year if there is a large drop in the municipal ratio. For example, a property assessed at $64,000,000 in a munici- pality with an 80% Chapter 123 ratio would have an im- plied true market value of $80,000,000. In a year where that municipality’s ratio drops to 60% would find the implied true market value increasing to over $100,000,000; a valu- ation that most likely could not be obtained in the real estate market. This means that, while the office market, particularly in urban cores and suburban areas, has gen- erally seen values decrease, the implied market value of an assessment which is not changed, but is instead subject to a lower equalization ratio, actually increases . This is currently happen- ing in many municipalities where office buildings and office complexes continue to carry the property tax bur- den, even though their real market values have crashed in the past five or six years. This “squeeze” is itself driving down the actual market value of these properties as the ever- increasing tax burden makes it harder for owner-occupants to afford the property, and for owner-lessors to market the property to prospective tenants. This has caused a decrease in rents in order to entice lessee interest. Going forward, we see this squeeze increasing, at least until each municipality reas- sesses or revalues all of their properties to be in line with the current soft office market. A drop in the current residen- tial market could slow this squeeze from increasing, but that would only limit future damage to the office sector. The remedy for office own - ers? Vigilantly check both continued on page 10A

highest av- erage prop- erty taxes. This is espe- cially true for many of New Jer- sey’s office properties. The effects

porate cen- ters. Many of these cen- ters have been shaken by the flight of large com- panies from the State while also

Thomas M. Olson

Matthew J. Erickson

of the pandemic, together with the current strong residential market, still linger in the area’s soft and uneven office rental market. This is especially true for

being affected by many of the remaining companies looking to downsize their physical foot - print in the state. What is not getting down- sized, however, is the prop -

M id A tlantic Real Estate Journal — 2026 Forecast — January 2026 — 5A

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2026 F orecast

By Michael Mullin, IBSRE AI-powered insights to drive efficiency and sustainability in commercial real estate competitive advantage.

s CEO of a technology service provider dedi- cated to supporting com-

insights to evaluate the finan - cial implications of potential upgrades or electrification strategies before implemen- tation. This data-driven ap- proach will enhance sustain- ability initiatives, allowing owners to model emissions reductions and identify op- portunities that align with investor expectations and regulatory requirements. Moreover, as investors in- creasingly emphasize energy efficiency and sustainability performance, the ability to provide accurate energy fore- casts will significantly bolster our clients’ attractiveness to

potential investors and stake- holders. By grounding their strategies in reliable data rath- er than estimates, they will not only improve operational performance but also solidify their leadership in the green building movement. Overcoming Data Barri- ers: While the transition to AI-driven energy forecasting is promising, we recognize the on - going challenges related to data quality and infrastructure. In 2026, we expect significant investments in smart building technologies, sensor deploy- ments, and system integrations that will enhance data quality

across the commercial real es- tate sector. As these barriers diminish, more buildings will harness AI’s predictive capa- bilities, foster innovation, and create a level playing field. Navigating Uncertainty: Today’s commercial real es- tate environment is marked by increasing volatility and tighter margins. AI-powered forecasting will serve as a strategic tool that narrows the gap between uncertainty and clarity in energy management. By providing real-time, active insights, our clients will be positioned to make informed decisions that enhance their

In summary, the next few years will see AI redefine how commercial real estate compa- nies approach energy manage- ment. As a technology service provider, we are committed to helping our clients navigate this transformation by pro- viding the tools and expertise needed to realize the full po - tential of AI-driven energy fore- casting. Together, we will forge a new path toward smarter, more efficient buildings that balance operational needs with sustainability goals. Mike Mullin is the presi - dent & CEO of IBSRE. MAREJ

mercial real estate compa- nies, I foresee transforma- tive changes in our indus- try in 2026, driven by ad- vancements in artificial

Michael Mullin

intelligence and data analyt- ics. The power of AI to reshape energy forecasting will redefine how owner/operators manage their properties and enhance operational efficiency. Revolutionizing Ener- gy Management: AI-driven energy forecasting will be a cornerstone of energy manage- ment for commercial buildings. No longer reliant on historical averages and static assump- tions, building operators will anticipate energy costs with un- precedented accuracy. Instead of responding to bills after the fact, they will proactively man- age their energy use, capital- izing on predictive insights to navigate fluctuating energy prices and occupancy shifts. Enhanced Operational Efficiency: With AI models continuously learning from vast datasets, owner/operators will see significant reductions in energy waste. Predictive capabilities will enable prop- erty managers to adjust HVAC schedules and loading strate- gies in real time, optimizing energy use while maintaining tenant comfort. This proactive approach will create a feedback loop, enabling buildings to adapt dynamically and rein- force best practices based on performance data. Portfolio-Wide Insights: A key advantage of AI-driven forecasting is its ability to scale across diverse portfolios. In 2026, commercial real estate owners will leverage consistent forecasting strategies that en- compass various property types and locations, treating energy management as a portfolio- wide challenge rather than isolated cases. This holistic approach will enable smarter decision-making and empower owners to deploy resources more efficiently. Strategic Capital Plan - ning and Sustainability: As energy forecasting evolves, it will transform capital plan- ning processes. Building op- erators will utilize predictive

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6A — January 2026 — 2026 Forecast — M id A tlantic Real Estate Journal

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2026 F orecast By Jon Moore, Woodmont Properties

2026 Commercial Real Estate Outlook: New Jersey & Eastern Pennsylvania

he New Jersey–East- ern Pennsylvania cor- ridor is set for solid

demand. With unemployment hovering around 4%, consumer confidence remains a primary driver of rental demand. We should keep an eye on young professionals impacted by AI’s commercial adoption. Multifamily: Demand Outpaces Supply The multifamily sector re- mains tight, with net absorp- tion forecast at 24,200 units and average rents climbing 3% to $2,560. Vacancy is expected to dip to 5.0%—a five-year low—while core-plus cap rates compress into the 4.5% range. Two primary forces define this market:

• Transit-Oriented Develop - ment (TOD): The operational “Gateway Revitalization” plan has fueled development around Newark, Hoboken, and the ex- tended PATCO line. Developers are concentrating nearly half of new starts within a half-mile of rail stations to capture premi- ums for walkability. • Policy & Incentives: While state policies limit volume in high-impact zones to protect open space, new “Workforce- Housing” bonds and tax credits offset a third of construction costs for mid-scale projects. Fourth round COAH require - ments have driven a rush of

supply, but demand should meet or exceed the same. This attracts institutional capital to the Lehigh Valley and New Jersey, addressing a critical need for the region’s expand- ing middle class and affordable housing (lowercase ‘a’) which apartments provide relative to for-sale housing. Keep an eye on municipal budgets and real estate taxes; PILOTs are im- portant to make projects pencil. Industrial: A Logistics Powerhouse Industrial real estate re- mains a premier asset class. Deliveries are expected to reach 20.5 million square feet, yet vacancy will slip to 4.4% as average asking rents rise north of $15 psf. Regional infrastructure in- vestments (totaling $2-3 bil- lion) along I-95, I-78, and I-81 have sharpened last-mile con- nectivity. Demand for “last- mile” parcels (30–50k s/f) is expected to rise 9%. Capital & Financing Lending is back with tighter spreads, and equity is com - ing back to development after a few years given 2021-2023 cost inflation and national supply concerns. Benchmark rates remain stable, with the Fed easing around the edges. Institutional investors are pri- oritizing the region given its high barrier to entry status, earmarking 60-70% of new capital for industrial assets and multifamily assets. Strategic Takeaways To capitalize on these funda - mentals, stakeholders should: • Focus on TOD and sub - urban apartments: Prioritize multifamily projects near rail hubs or suburban locations given remote workers and the impending full self-driving cars (no more stressful commutes from the burbs). • Target Logistics Corri - dors: Secure industrial par- cels with direct access to I-95/I-81, Rt. 78 or the Port of Newark-Elizabeth. In summary, 2026 offers a favorable risk-adjusted re- turn environment. Steady job growth and strategic infra- structure will keep vacancy low and rents rising for savvy investors in the NJ-PA corridor. Jon Moore is CIO at Wood- mont Properties, overseeing investments, capital mar - kets, and growth strategies, bringing 30+ years of real estate development leader- ship experience. MAREJ

Economic & Demographic Foundations Regional GDP growth is pro- jected between 2-3%, outpacing many national average fore- casts due to thriving health- care, advanced manufacturing, and financial service sectors. Demographic trends support this optimism: the region added 230,000 households between 2022 and 2025—primarily young professionals and dual- income families seeking a bal- ance between urban proximity and suburban affordability. New York City’s lack of afford- ability and fluctuating social legislative policies creates NJ

expansion in 2026, driven by steady economi c g r o w t h , population influx, and a dominant logistics network .

Forecasts indicate persis- tent demand for housing and warehouse space, with supply constraints keeping vacancies low and rents on an upward trajectory. Jon Moore

M id A tlantic Real Estate Journal — 2026 Forecast — January 2026 — 7A

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2026 F orecast

By Austin Pittman, Lawson Checking the boxes; LIHTC applications from a developer perspective ly receive scoring incentives. Key building design deci- application competitiveness but adds complexity.

ow-Income Housing Tax Credit (LIHTC) applications are a se-

QAP. Elections are the differen- tiator between competitive and non-competitive applications. While elections are voluntary, many elections are required to meaningfully compete. Elections fall into two catego- ries; operational and physical. Operational elections gov- ern how the property will be leased, managed, and operated. They’re the frame- work for income targeting structure, tenant popula- tion, leasing preferences, and rental subsidy require - ments, and require long-term operations and compliance

oversight. The minimum set-aside election establishes project income targeting framework and influences unit mix, achievable rents, underwriting assumptions, and compliance obligations. Many QAPs award points for leasing preferences tied to specific populations or policy objectives, impacting tenant selection plans and marketing strategies. Developers may elect to include rental sub- sidies, such as project-based vouchers to support deeper af- fordability or strengthen proj- ect feasibility. This improves

Physical elections relate to site selection and building design. Site selection is both point-driven and market- driven, and affects location, design, cost, constructability, and operating performance. Proceed with caution; each election can be binding for the life of the compliance and extended use periods. QAPs often prioritize de - velopment in specific market types and targeted redevelop- ment or revitalization areas. Sites in QCTs or DDAs typical-

sions are required at the time of the reservation applica- tion, including accessibility, green building enhancement, and building materials. En- hanced accessibility is often incentivized and affects unit layouts, construction costs, and maintenance. Sustain- ability standards and energy- efficiency are rewarded under QAP scoring and influence upfront costs and long-term operating expenses. Elections related to material quality, continued on page 10A

ries of delib- erate elec- tions. Elec- tions may appear to be simple scor- ing decisions, but each car- ries long- term impli-

Austin Pittman

cations and shape a property’s financial success or failure. To understand why certain elections matter, it’s essential to start with the Qualified Al - location Plan (QAP). The Internal Revenue Code establishes boundaries for the LIHTC program and grants states discretion to define priorities. The QAP is the primary policy instrument through which states translate federal requirements into a competitive framework, es- tablishing selection criteria and scoring priorities that govern which developments receive LIHTC allocations. QAPs may give preference to experienced project spon- sors committed to serving the lowest-income households and ensuring long-term afford- ability. Emphasis is placed on developments in Quali- fied Census Tracts (QCTs) or Difficult Development Areas (DDAs), projects incorporat- ing leasing preferences and accessible design features, and proposals advancing energy efficiency and sustainability goals. Equally important are financial feasibility, cost ef- ficiency, and readiness incen - tives. States expect applicants to show efficient use of resourc - es while demonstrating project feasibility through achievable budgets and evidence of munic- ipal approvals and entitlement progress. These thresholds shape underwriting assump- tions, partnership structures, and operating strategies. Understanding the QAP is not just about winning credits; these are binding, decades-long commitments. Elections impact construction, lease-up, asset management, and compliance monitoring, and decisions must align with operational realities and long- term impacts. After establishing baseline eligibility, the LIHTC appli- cation becomes an exercise in making informed election deci- sions in response to the state’s

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2026 F orecast

Market fundamentals stabilize as investors and occupiers regain confidence WCRE Fourth Quarter 2025 Report: Stability emerges as CRE positions for 2026

real estate markets through- out the region are demonstrat- ing measured stabilization and renewed confidence. Transac - tion activity remained steady through the fourth quarter, supported by easing inflation, more predictable financing conditions, and limited new construction. While certain sectors continue to recali- brate, improved pricing clarity and disciplined underwriting helped restore momentum across leasing, investment, and owner-user activity. “As we close out 2025, the market is no longer defined by

volatility, but by recalibration and opportunity,” said Jason Wolf , managing principal and founder of WCRE. “Capital is becoming more intentional, occupiers are making clearer long-term decisions, and well- located, high-quality assets continue to outperform as we move into 2026.” Regional Market Highlights: Southern New Jersey fin - ished the year with resilient leasing and investment activ- ity, supported by continued demand for modern office, healthcare, and industrial space. Flight-to-quality trends

remained dominant as ten- ants prioritized amenity-rich, efficient buildings in strategic suburban corridors such as Cherry Hill, Mount Laurel, and Marlton. Investment activity remained steady despite elevat- ed interest rates, with private regional owners and owner- users driving acquisitions and portfolio repositioning efforts. Philadelphia’s commer - cial real estate market showed cautious but tangible signs of stabilization in Q4. Of - fice absorption remained under pressure as tenants continued to right-size, though long-term

commitments by institutional and professional users rein- forced confidence in best-in- class assets. Industrial demand softened amid rising sublease availability and new supply, while retail leasing remained resilient, led by service-orient- ed, healthcare, and experien- tial users. Investor confidence strengthened throughout the quarter, supported by clearer pricing visibility and improved financing predictability. Northern New Jersey continued to rank among the nation’s strongest industrial markets, benefiting from its strategic location and demand for modern logistics facilities. While the office sector remained uneven due to hybrid work adoption, select suburban sub- markets maintained stability. Retail assets in well-positioned corridors benefited from lim- ited new supply and consistent consumer traffic, supporting steady fundamentals heading into 2026. New York’s recovery pro- gressed unevenly across as- set classes. Retail leasing rebounded in prime corridors as experiential and flagship concepts expanded. Office de - mand remained concentrated in high-quality class A prop - erties, reflecting an ongoing flight-to-quality trend. Indus - trial assets in outer boroughs continued to attract interest from logistics and last-mile us- ers seeking proximity to dense population centers. Key Market Takeaways: • Market conditions stabilized across asset classes as pricing clarity and disciplined lending supported steadier activity • Flight-to-quality trends con - tinued to favor modern, well- located office, industrial, and retail properties • Capital markets regained confidence as underwriting con - ditions became more predict- able and cap rates stabilized • Retail leasing remained re - silient, led by service-oriented, experiential, and essential- use tenants • A gradual and uneven re - covery is expected in 2026, favoring adaptable assets and owners focused on flexibility and efficiency Notable Transactions for Q4 2025: • South Jersey: Needleman Management completed the acquisition of the 340,261 s/f office complex at 6000 & 8000 continued on page 10A

ARLTON, NJ — Wolf Commer- cial Real Estate

(WCRE) has released its Q4 2025 Re- gional Mar- ket Report, providing a comprehen- sive analysis of commer- cial real es-

Jason Wolf

tate conditions across South- ern New Jersey, Philadelphia, Northern New Jersey, and the New York Metro markets. As 2025 ends, commercial

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2026 F orecast

The Clinical Group Healthcare Real Estate continues to set the standard for CRE resilience

ealthcare real estate, particularly medical office buildings and

Internet of Medical Things infra- structure to future proof assets. Patient demand remains steady. Average patient visits per provider have increased consistently since 2021, sup- ported by demographic growth, restored routine care, and economic stabilization. Physi - cian visit volume grew at a one percent compound annual growth rate from 2020 to 2025, though growth slowed notably in 2025 to just 0.9%. Smaller and rural provid- ers are increasingly adopting collaborative survival strate- gies. Clinically integrated networks and shared service

alliances allow independent hospitals to consolidate ad- ministrative functions, im- prove payer leverage, and maintain community gover- nance amid staffing shortages and reimbursement pressure. By the numbers, the U.S. contains more than 28,700 medical office buildings total - ing over 2.2 billion s/f. Manhat- tan ranks as the fifth largest medical office market, with 90.5 million s/f across 377 properties. Geographic con- straints and zoning limitations have limited new development, with only 636,100 s/f under construction as of mid-2025,

prompting vertical expansion and modernization of existing assets. Major projects such as Hospital for Special Surgery’s 400,000 s/f outpatient tower underscore Manhattan’s con- tinued institutional strength. Investment activity re- bounded in the second half of 2025. Third quarter medi - cal office transaction volume reached 2.7 billion dollars, up 27% quarter over quarter. Record rents of 25.20 dollars psf, positive net absorption of 2.4 million s/f, and expanding cap rates supported renewed investor confidence. MOBs traded at average cap rates of

6.9%, with specialized assets such as rehabilitation hos- pitals showing the strongest activity. Looking ahead, medical of- fice occupancy has reached 93%, the highest level in a decade, and tenant retention stands near 89%. Despite pol- icy uncertainty and elevated costs, demographic demand, outpatient migration, and adaptive reuse strategies po- sition healthcare real estate, particularly medical office buildings, as one of the most durable and resilient commer- cial real estate asset classes entering 2026. MAREJ

outpatient facilities, closed 2025 on a strong note, con- tinuing a multi-year pattern of resilience. While traditional office assets faced persistent headwinds, healthcare proper- ties remained stable and are widely expected to continue outperforming broader com- mercial real estate into 2026. Recent policy changes have added financial pressure on providers. The One Big Beau- tiful Bill Act, the most sig- nificant healthcare legislation since the ACA, is projected to reduce Medicare and Medicaid reimbursement, compress- ing provider margins by as much as 18% over five years. Hospital credit downgrades now outpace upgrades nearly three to one, and rising insur- ance premiums are driving more patients out of coverage, increasing uncompensated care risk. These pressures are accelerating providers’ push toward lower cost outpatient care models. Demographic forces remain a powerful tailwind. An ag- ing population, particularly in the Southeast and Central U.S., is increasing demand for healthcare services. While inpatient volumes are largely flat, patient acuity and average lengths of stay continue to rise. To protect operating margins, providers are shifting higher acuity services into ambula- tory and outpatient settings, reinforcing demand for modern medical office space. Operational and construc- tion constraints persist. Infla - tion, supply chain disruptions, and labor shortages continue to challenge healthcare devel- opment. The rollback of fed- eral clean energy incentives under the One Big Beautiful Bill Act has weakened the return on sustainability in- vestments, while skilled labor shortages are driving greater reliance on modular and pre- fabricated construction to maintain project timelines. Technology investment has become a core capital priority. More than 63% of healthcare systems are now investing in artificial intelligence, with AI adoption projected to grow at a compound annual growth rate exceeding 38% through 2030. As a result, developers are pri- oritizing smart ready facilities with 5G, edge computing, and

MEDICAL REAL ESTATE | ADVISORY | DEVELOPMENT | INVESTMENT

@TheClinicalGroup

TheClinicalGroup.com

855-CLINGRP

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10A — January 2026 — 2026 Forecast — M id A tlantic Real Estate Journal

www.marej.com

2026 F orecast

By Robert Holland, The Kislak Company, Inc. Reliable Forecast: You must be present to win

n today’s world, there are incredible demands on our time and atten-

and in-person visits that build trust and lead to solid relation- ships. This work ethic contin- ued to serve Kislak and our clients well in 2025. It was a strong year and among our best by every measure – including sales volume and the number of closed transactions. We closed 103 sales for $621 million and 37 leases with rents totaling $13 million, which represents a 22% increase over 2024. According to CoStar and their entry of 2025 multifam- ily sales in the Northern New Jersey MSA, Kislak was the #1 buyer broker and #3 seller bro- ker. Among the highlights are a $90,000,000 10-property Union County portfolio that was among the largest multifamily sales in New Jersey in 2025; the $20,000,000 exclusive sale of 70 Central Lofts, which represents the highest price per unit achieved for a 10-plus unit multifamily property in Jersey City since 2021; and the $22,150,000 exclusive sale of

The Parc at Summit – the larg- est multifamily sale in terms of price and price per unit in Union County since 2022 and the largest multifamily sale in Summit in at least 10 years. As a result of such significant deals, the Kislak team pro- duced impressive transaction statistics in 2025, including 3,500+ multifamily units sold, 500,000+ s/f of commercial properties sold and 130,000+ s/f of commercial space leased. Multifamily real estate main- tains its status as a highly de- sirable investment. Renting is appealing to people of all ages – from 20-somethings to empty nesters – resulting in strong occupancy and collections. Year after year, the reliable and comparatively low-risk returns of multifamily property draw and keep investors. Another important facet of Kislak is our commercial sales and leasing division. We are seeing evolving de- mands for office, warehouse

and retail space open up connections with a variety of companies and an increasing number of transactions. In addition to Kislak’s long- time comprehensive market coverage throughout the north- east, we are expanding our presence in Florida. Many of our northeastern multifamily clients own or want to own in Florida or are part-time resi- dents there, so this venture en- ables us to enhance our service and offerings. It is also important to note that our highly skilled ad- ministrative, marketing and research professionals provide detailed and timely data and communications needed for sound decision-making. We pride ourselves on serv- ing as our clients’ eyes and ears, and our salespeople are proactive experts. Regardless of conditions, Kislak is well-po- sitioned to consistently achieve the highest and best prices, and best terms, for our clients.

Thanks to Kislak’s exceptional service and our ability to close deals, we have gained the con- fidence of multiple generations of business families. We are optimistic the mar- ket improvement we saw in 2025 will continue, and we expect activity to be driven by fundamentals, rather than speculation. In this environ- ment, local market knowl- edge, thoughtful underwrit- ing and strategic advisory services are more valuable than ever. Our 2026 forecast is clear: Kislak – and our clients – will be present for many wins. Robert Holland joined Kislak in 1984 and became president in 2012. Consis - tently, among the lead- ing brokers of apartment buildings in central and eastern Pennsylvania, Hol - land is one of Kislak’s all- time leading salespeople with sales totaling more than $3 billion. MAREJ

tion. Amaz - ing advances in technology and commu- nications can help us mul- titask and work from almost any- where, while

Robert Holland

processing and producing enor- mous amounts of information. They can also create distrac- tions and distance, weakening relationships and diverting us from our goals. Early on, Kislak recognized that long- term success requires us to focus, follow through and de- liver. Whatever opportunities and challenges the new year brings, we predict the old cli- ché will remain true: You must be present to win. Since 1906, Kislak profes- sionals have been knocking on doors, making personal calls

New Supply Chain Partner Report Shows Positive Impact of NJ’s Warehouses and Distribution Centers

New Jersey office tax assessments impacted by declining market . . .

tives with operational reali- ties, but the outcome is vibrant communities that support families in need of quality, af - fordable housing. Austin Pittman is vice president and director of Development at Lawson, accountable for all new LI- HTC development. MAREJ “Previously available data showed the numerous ben- efits of the state’s logistics in - dustry,” said David Greek , chair of Circulate NJ . “That data, however, was years old and did not reflect the true nature of how large that im- pact is. This new report pro- vides a great picture of just how many New Jerseyans rely on the logistics industry for their livelihood. We thank NAIOP NJ, the Shipping As- sociation of New York and New Jersey, Rutgers and Anne Strauss-Wieder for bringing this valuable infor- mation to the public.” MAREJ the additional quantifica - tion of the ongoing economic value generated by these operations using the same economic impact model de- veloped for the 2025 Port Industry analysis.

in tax burdens that are either unsustainable, or unfairly high, or both. Thomas M. Olson is a partner at McKirdy, Riskin, Olson & DellaPelle, P.C. Matthew J. Erickson, Esq. is an attorney at McKirdy, Riskin, Olson & DellaPelle, P.C. MAREJ Looking ahead, WCRE an- ticipates measured momen- tum continuing into 2026, supported by improving capi- tal availability, stable labor markets, and a restrained development pipeline. While challenges remain in certain asset classes, the alignment of clearer pricing, steady tenant demand, and disciplined invest- ment strategies position the region’s commercial real estate markets for sustainable growth. WCRE’s Q4 2025 Market Report delivers critical in- sights into the trends shaping the commercial real estate landscape and serves as a strategic resource for owners, investors, and occupiers navi- gating a market defined by recalibration and opportunity. The full Q4 2025 market report by WCRE is available upon request. MAREJ

achieve a winning score, but to ensure financial sustainability. Remember, elections are long-term commitments from the owner and will shape a property’s financial perfor- mance, and operational and compliance requirements for years. It’s a balancing act to thoughtfully align QAP incen- The analysis used pub- lished reports, fieldwork, engineering information, and the extensive knowledge of the Advisory Committee to develop a consensus estima- tion of the number of workers in New Jersey’s warehouses and distribution centers. Once the number of workers in New Jersey’s warehouses and distribution centers was ascertained, CAIT undertook of Planning and Public Policy . “While warehous - es and distribution centers are visible throughout the state, the activities that occur within them – as well as the number of workers employed and the economic value they generate – are often less ap- parent. Not only does this re- port quantify those numbers, it also shows just how great that impact really is.”

durability, and resilience are increasingly driven by QAP incentives and have lasting implications for capital re- placement and asset longevity. Elections can’t be made in isolation; collaborate with those tasked with implementa- tion. The objective is not only to • More than $33.8 billion in federal, state, and local tax revenues, with local and state tax revenues of nearly $11.3 billion and federal tax rev- enues of almost $22.6 billion. “New Jersey may be one of the smallest states in the nation but it is a vital hub for the distribution of goods across the country,” said Anne Strauss-Wieder , se- nior Freight and Logistics Researcher at Rutgers CAIT and a Lecturer at the Ed- ward J. Bloustein School to the staggering job figures, the report also found that warehouses and distribution centers in New Jersey annu- ally support: • Over $112.8 billion in personal income. • More than $295.8 billion in business activity. continued from page 2A

continued from page 4A your tax assessments and your municipal ratios every year and file a tax appeal when you are unfairly assessed. By care- fully monitoring the situation, property owners and manag- ers can minimize the chances that their New Jersey property tax assessments don’t result Midlantic Dr. in Mount Laurel, representing one of the region’s largest office transactions in Q4 2025. • North Jersey: EQT Real Estate acquired the 1,013,206 s/f industrial facility at 2321 High Hill Road in Swedesboro for $26.05 million, highlight- ing sustained demand for large-scale logistics assets. • Philadelphia: FS In- vestments expanded its foot- print with a 117,000 s/f, 16-year office lease at 3025 JFK Blvd., reinforcing the continued flight-to-quality trend in Center City. • New York: Kirkland & Ellis signed a 29,233 s/f of- fice lease at Commerce One in Manhattan, underscoring NYC’s leadership in the na- tional office recovery. Outlook for 2026:

continued from page 8A WCRE Fourth Quarter 2025 Report . . .

continued from page 7A Checking the boxes; LIHTC applications from a developer . . .

M id A tlantic Real Estate Journal — 2026 Forecast — January 2026 — 11A

www.marej.com

2026 F orecast

Commercial Real Estate Brokerage

FEATURED 2025 INVESTMENT SALES

Union County, NJ $90,000,000 540-Unit Portfolio

Burlington County, NJ $60,000,000 400 Units

Summit, NJ $22,150,000 57 Units

Jersey City, NJ $20,000,000 32 Units

Vineland, NJ $12,000,000 104 Units

Aberdeen, MD $15,800,000 60 Units

Bloomfield, NJ $11,000,000 63 Units

Piscataway, NJ $6,000,000 31 Units

Garwood, NJ $6,600,000 36 Units

Trenton, NJ $4,850,000 40 Units

Belleville, NJ $4,700,000 28 Units

Livingston, NJ $4,500,000 51 Units

Millburn, NJ $4,000,000 15 Units + 4 Retail

Somerville, NJ $2,675,000 45,000 SF Office/Retail

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