6B — September 11 - 24, 2015 — New Jersey — M id A tlantic
Real Estate Journal
www.marejournal.com
N orthern N ew J ersey For third quarter 2015 Marcus & Millichap’s Apartment Research Market Report - Northern New Jersey N ORTHERN NJ — Economic growth is picking up as New
of multifamily projects to its widest level in several years. The bulk of construction will focus on Jersey City and other parts of Hudson and Bergen counties, where vacancy is tightest, providing renters quick commutes intoManhat- tan. The heightened pace of construction will bear fruit this year, with deliveries ris- ing to the highest pace in the last decade. Despite the more elevated level of activity, the effects on vacancy have been nonexistent as tenants have absorbed nearly double the amount completed dur-
ing the past year. This has produced four consecutive years of effective rent growth, which will continue in 2015 as supply increases fall be- hind flourishing demand for rentals. In a search for yield at a time of historically low in- terest rates, investors have been actively seeking to de- ploy capital into apartment buildings in the Northern New Jersey metro. While institutions dominate the top end of the market, individual buyers stepped up their activ- ity considerably over the past
year. These participants have been using their knowledge of local markets to search for attractive assets along major transportation arteries such as Jersey City, Newark and Hoboken where prospective tenants are willing to pay higher rents for shorter com- mutes to their jobs. Transac- tion activity in these areas rose markedly in the last year; cap rates compressed broadly, now averaging 5.8%. Buyers have shown the most demand for properties yield- ing above-the-market aver- ages, seeking outsized re-
turns as asset values rise. An impending interest rate hike this year will motivate investors to evaluate their holdings, accelerating trading throughout 2015. 2015 Annual Apartment Forecast Employment: Hiring will pick up this year as firms add 29,000 employees, a 1.4% ex- pansion year over year. This will be the largest number of jobs created since 2000. In the previous year, 20,500 workers were added. Construction: Tight market conditions have motivated developers to boost their ac- tivity; they will deliver more than 7,900 apartments this year, the quickest pace of construction in several years. Last year, builders completed 2,900 units. Vacancy: Robust net ab- sorption will limit the effects of more elevated levels of de- velopment as vacancy falls 20 basis points year over year to 2.7% in 2015. In the previous year, vacancy contracted 40 basis points. Rents: The average effec- tive rent in Northern New Jersey will rise 3% to $1,955 per month, the same pace of improvement of 2014, even as deliveries more than double. Tenants are drawn to more affordable options in the metro. 2015 Annual Apart- ment Forecast n NAI DiLeo-Bram reps Magyar Bank in sale of residen- tial land site JERSEY CITY, NJ – NAI DiLeo-Bram & Co. an- nounced that it represented
Jersey and New York City employers expand their head- counts, providing new oppor- tunities to New Jersey resi- dents. These newly employed professionals are scouring the Greater New York City area, finding more affordable hous- ing in Northern New Jersey, where average rents can be half the cost of the five bor- oughs. This disparity has led to plummeting vacancy rates, which has encouraged devel- opers to deepen the pipeline
Better relationships. Better results. With close relationships to Freddie Mac, Fannie Mae, 20 CMBS lenders, hundreds of local, regional and national banks, and more than 50 life insurance companies, NorthMarq Capital has the capital connections to deliver the results our clients expect. Here are just a few....
MULTIFAMILY $51,844,000 EXCELSIOR II HACKENSACK, NJ | 267 UNITS FREDDIE MAC
RETAIL $11,500,000 EATONTOWN PLAZA EATONTOWN, NJ | 170,000 SF COMMUNITY BANK
MEDICAL OFFICE $16,500,000 NJ HEALTH CARE CENTER ORADELL, NJ | 74,556 SF LIFE COMPANY
the sale of 65- 71 Monitor St. in Jersey City by Mag- yar Bank to Manhattan- b a s e d P E Real Estate Holdings. The ½ acre
Visit northmarq.com/north-new-jersey or call 973.538.2330 to learn more!
N E W J E R S E Y R E G I O N A L O F F I C E
of land sold for $1.75 million dollars and has “as of” rights to construct 51 residential units in the burgeoning new resi- dential neighborhood adjacent to Liberty State Park and the Liberty Science Center. NAI DiLeo-Bram vice president Jeff Jones represents Magyar Bank on all commercial bank owned property. n Jeff Jones
C O M M E R C I A L R E A L E S T A T E D E B T , E Q U I T Y & S E R V I C I N G
Made with FlippingBook - Online catalogs