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10D — July 22 - August 18, 2022 — Brokerage Directory — M id A tlantic Real Estate Journal

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B rokerage D irectory

Industrial continues to be the strongest CRE subsector for CORFAC members CORFAC members experience positive momentum despite market headwinds

T

he commercial real estate marketplace has endured a tumultuous

pandemic and all the related implications, but now with inflation rising and consumer spending reduced, the economy will slow and have rippling ef- fects on all sectors.” Despite these worries, half of CORFAC members describe overall business sentiment in their market as “somewhat positive” and another third say it’s “very positive.” The strength of the industrial sub- sector and readily available capital are common reasons for this positivity. Yet, other members are hoping for some changes in government lead- ership, tax policy or both to help buoy businesses and CRE activity. As business owners try to understand how economic policies will impact their real estate plans, CORFAC brokers will draw from local experience and global network insights to help them make confident decisions. MAREJ Positivity in the face of ambiguity

rate real estate. With 3,600 members, SIOR serves as a premier global achievement for only the top industrial and office specialists. Both orga - nizations are elevating the industry and many members hold dual designations. About SIOR The Society of Industrial and Office Realtors is the lead - ing society for industrial and office real estate professionals. Only the industry’s top profes- sionals qualify for the SIOR designation and adhere to the highest levels of accountability and ethical standards. Today, there are more than 3,600 SIOR members in 722 cities and 45 countries. About CoreNet Global CoreNet Global is a non- profit association, headquar- tered in Atlanta, Georgia (US), representing nearly 10,000 members in 50 countries with strategic responsibility for the real estate assets of large corporations. The organiza- tion’s mission is to advance the practice of corporate real estate through professional develop- ment opportunities, publica- tions, research, conferences, designations and networking in 45 local chapters and network- ing groups globally. MAREJ industrial.” When looking at the client makeup for CORFAC, the larg- est source of new business this year is existing clients who are expanding, according to 70% of members surveyed – an in- crease from 63% the previous year. Clients relocating to the market was the next high- est source of new business at nearly 50%. Changes and challenges for CRE brokers Shifting consumer behaviors in the 2020s ¬– particularly the growth of work from home and digital commerce, as well as the great job migration – will shape CRE trends for the near future. Specifically, 62% of members believe office will be the CRE sector that changes the most in 2022, as companies are still adjusting to the growth of remote and hybrid workforces. However, some members point to huge multinational corporations such as Google bringing back employees to the office as a

reason for optimism. “Companies will become more decisive related to space needs going forward the next three to five years. This will likely mean more rightsiz- ing and downsizing for the short term,” said Jason Wolf , founder of Wolf Commercial Real Estate/CORFAC Inter- national in Marlton, NJ. CORFAC brokers were asked what their greatest concerns are looking at current events and macroeconomic trends. More than 55% of members identified inflation and rising interest rates as the factor that will have the most negative effect on CRE transaction ac- tivity. Continued supply chain challenges and the constrained labor market are compound- ing those rising costs to cause uncertainty in the CRE mar- ketplace. As one member summed it up, “Consumer spending has been strong through the last 12 months as we thought we were rebounding from the global

Mason Capitani/CORFAC International in Detroit, MI. “Our quarterly survey shows that our brokers have unique perspective on how macro trends affect their markets and can use that to help their clients make better future- looking decisions.” Where deal activity is coming from Industrial continues to be the strongest CRE subsector for CORFAC members, with 65% of respondents saying it drove business activity. In par- ticular, coastal markets that are a point of entry for goods are seeing great demand for warehouse and logistics space. “In the tristate area, sur- rounded by logistical cen- ters, demand is off the charts and pricing is further off the charts,” said Jeff Garibaldi , president of The Garibaldi Group/CORFAC Interna- tional in Chatham, NJ. “There are 50+ existing office build - ings being demolished to make way for big-box or last-mile

two years, and condi- tions have yet to stabi- lize. With the pandemic en- tering a less urgent phase and stimulus programs

Mason Capitani

ending, now the public and private sectors are contending with the repercussions. During its quarterly survey of brokers from its independently owned member firms, CORFAC found that overall business senti- ment in member markets remains encouraging, even as concerns emerge about the ef- fects of inflation and rising in - terest rates on potential deals. “CORFAC members are see- ing strong deal activity even as we continue to contend with political and economic unknowns,” said Mason Capi- tani, SIOR , principal of L.

SIOR and CoreNet Global partner to streamline subsequent designation eligibility

NAI Fennelly closes 110,534 s/f in leases & sales in central NJ over the 1st half of 2022

Active CoreNet Global mem- bers who seek to join SIOR can waive all three of the elective courses. “This excit-

WASHINGTON, DC — The Society of Industri- al and Office REALTORS

(SIOR) , and corporate real estate association Co r eNe t Global , have formed a partnership that will pro- vide mem-

ing collabora- tion between C o r e N e t Global and SIOR will advance the profession of corporate

22 Abeel Rd. in Monroe Twp

Forrestal Village in Plainsboro Twp. Highlighting the firm’s sales activity was its negotia- tion of a $3.8 million sale of a 27,863 s/f flex/office building at 22 Abeel Rd. in Monroe Twp. to Aplomb Technologies. “Today’s office market is among one of the most com- plex I have ever seen in my decades long career,” said Jerry Fennelly, SIOR, presi- dent of NAI Fennelly. “The search for spaces that provide the combination of in-demand amenities, highly respected ownership and great locations has continued to drive activity throughout suburban markets as workers make their way back to the office. However, in today’s environment, tenants and landlords continue to face unique challenges in their re- spective office space decisions, making it even more critical that they work with an experi- enced real estate services team to help them find the solutions that align with their business goals.” MAREJ

HAMILTON, NJ — NAI Fennelly has closed 110,534 s/f in office leases and sales in central New Jersey over the first half of 2022. Since the start of the pan- demic, NAI Fennelly’s Jerry Fennelly, SIOR, Matthew Fennelly and Patrick Din- trone have worked closely with office owners and tenants to provide the experience- backed counsel and local mar- ket data they need to find success in an increasingly chal- lenging office leasing environ - ment. As companies continue to navigate return to the work challenges, NAI Fennelly’s un- derstanding of the central NJ and eastern PA markets and vast relationships throughout the area have been critical resources for its clients. Among the leases negotiated throughout 2022 are a 3,750 s/f lease was CrossState Credit Union Association at 2000 Waterview Dr. in Hamilton, NJ and a 2,600 s/f lease with Inceptua Group at Princeton

Angela Cain Robert Thornburgh

real estate and the commercial real estate industry overall by providing greater access to education, professional devel- opment and tools for success,” said Angela Cain , CEO of CoreNet Global. "SIOR is proud to partner with CoreNet Global and ad- vance the commercial real estate industry together,” shared SIOR CEO Robert Thornburgh, SIOR . “Both or- ganizations pride themselves on ensuring that only the most trusted, knowledgeable, and experienced professionals earn their designations, so it made perfect sense to help qualified individuals gain easier access to our organizations.” CoreNet Global represents nearly 10,000 distinguished members worldwide with a strategic focus on corpo-

bers of each organization with accelerated pathways to obtain their subsequent designations. Both SIOR and CoreNet Global aim to advance the com- mercial real estate industry through professional develop- ment, innovative research and publications, and networking opportunities. SIOR currently requires membership appli- cants to complete three man- datory course topics and three elective course topics for a total of six courses. CoreNet Global currently requires candidates for the Master of Corporate Real Estate (MCR) designa- tion to complete six seminars, including a Capstone seminar. The agreement allows active SIOR members pursuing the MCR designation to waive one CoreNet Global elective semi- nar (excluding the Capstone).

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