8-14-20

12B — August 14 - 27, 2020 — New Jersey — M id A tlantic Real Estate Journal

www.marej.com

N ew J ersey

MARKET AT A GLANCE By David A. Simon, SIOR, Chief Operating Officer of NAI DiLeo-Bram & Co. Capital Markets Summer 2020 Snapshot for the Central and Northern NJ Counties G iven how little activ- ity occurred during the stay at home or-

the value year to date and without these trades occur- ring, the volume during the first half of 2020 would have been dramatically lower The retail sector will re- quire time before we start seeing improvement and high unemployment has, and will, adversely impact this product type. There will be opportuni- ties for investors who are will- ing and financially able to ride out this storm Investors appear to be more interested in core assets over value-add and opportunistic properties and this seems likely to continue for the rest of 2020.

der (75% of t r ad e s o c - cur red be - fore April) it is likely that the second hal f of the year will see more volume, but investors

Total Trades 60 Total Volume $1.21b Arrows indicate direction of year-over-year change Industrial Trades 28 Trades $475.1m $132/Sq. Ft. (Aggregate) Office Trades 22 Trades $647.5m $214.32/Sq. Ft. (Aggregate)

David A. Simon

will continue to be cautious and take their time evaluating the new market conditions Even though the dollar vol- ume wasn’t terribly off from the first half of 2019, the total number of trades was quite

Stats came from five counties in Central/ Northern NJ. low in comparison. This means that several large trades drove

Retail Trades 10 Trades $97m $329.79/Sq. Ft. (Aggregate)

Figure 1: Historical Trading Activity

$2,500.00

100 120 140 160

$1.51 Billion

101 Trades

• Total volume is down 15.5% year-over-year, see Figure 1 • Investors and fund managers take cautious approach; total trades down 55.9% year-over- year, see Figure 1 impacted activity with 75% of trades occurring pre-shutdown • Retail sales volume is off the five-year average by 56% • The shutdown predictably • Figure 2 shows that Morris and Union Counties out-performed their five-year averages • Middlesex County is under- performing its five-year average by 52%, see Figure 2 • With over $500 million in transactions, Morris County is having its best year since 2018

$2,000.00

$1,500.00

0 20 40 60 80

$1,000.00

$500.00

$0.00

H1 2016 H1 2017 H1 2018 H1 2019 H1 2020 Amount (Millions) Transactions Five-Year Average

Source: NAIDB Research, Summer 2020

Figure 2: Transaction Volume by Asset Type and County

$600

$500

$400

$300

$200

$100

$0

Essex

Middlesex

Morris

Somerset

Union

Industrial

Office

Retail

Five-year average amount ($)

Source: NAIDB Research, Summer 2020

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