12A — January 17 - 30, 2014 — Mid Atlantic Real Estate Journal
2014 F orecast
By Robert Holland, president, The Kislak Company, Inc. New year promises strong multifamily opportunities
s another year begins, it is reassuring to see the multifamily real
a market leader. In 2014, we expect the cur- rent strong multifamily mar- ket to continue, with the most significant and likely variable being the potential for an increase in interest rates. The historically low interest rates we are experiencing have contributed to aggres- sive pricing and purchasing. Investors are demonstrating healthy appetites for multi- family properties, and we are seeing high demand for all property types. In our primary markets of New Jersey, Pennsylvania,
New York and Delaware, business is brisk and there is great interest in multifam- ily properties. Last year ’s extraordinary sales volume nationwide was a clear in-
In some situations, it may be too difficult to meet the demanding qualifications for a mortgage. In other cases, people are deciding to rent and wait for home prices to
Apartment buildings in the northeast are selling at record prices, which directly reflect the demand, low inter- est rates for financing, and the low rate of return on so many other types of invest- ments. Although the stock market again has reached record heights, many fear the inevitable correction. Invest- ing in multifamily real estate offers a level of certainty that is highly appealing. This is true for longtime and novice individual investors, as well as for institutional investors. In addition, many foreign investors seeking stable U.S. assets are looking to the mul- tifamily arena. Factors contributing to this strong multifamily activity in our region include: •Investors value the sta- bility and reliability of mul- tifamily properties as long- term investments. •Occupancy rates are very high. For example, northern New Jersey averages are in the 95 percent to 98 percent range. •Rent growth, with renewal increases of 3 percent to 4 percent, and few concessions offered to new renters. •Limited space for building new multifamily apartments, which creates greater demand for existing properties. Other keys to the high level of activity can be seen in our population density, job market, and proximity to New York City, where the cost of living is higher. As an alternative to Manhat- tan, Hoboken is the hottest market in New Jersey. The Hudson waterfront is highly popular and the interest spreads south to Jersey City and north to Weehawken and beyond. Multifamily real estate can also be a great career choice for sales professionals, with rewards directly related to dedication and drive. Kislak’s intensive training program focuses on our hallmarks: building personal relation- ships and providing stellar service. In 2014, we plan to build our sales team and expand within and beyond our cur- rent coverage area. For Kis- lak and the multifamily sec- tor, the forecast is bright. Robert Holland is the president of The Kislak Company, Inc. n
estate pic - ture remains robust. Still, we canno t i gnore the o n g o i n g overall eco- nomi c and market vola-
“In 2014, we plan to build our sales team and expand within and beyond our current coverage area. For Kislak and the multifamily sector, the forecast is bright.”
tility. Adapting and thriving through such challenges re- quires expertise and agility – characteristics that have helped establish the 108- year-old Kislak Company as
dication investors recognize and appreciate the steady flow of rental income as reli- able, viable and attractive. By chance or by choice, more and more people are renting.
drop further, while others are choosing to downsize and rent in retirement. As the number of renters increases, the ap- peal of apartment ownership is further enhanced.
CELEBRATING OUR 108 TH YEAR
Investment Real Estate Brokerage
Newark, New Jersey 99,000± SF Medical Office Robert Squires ext 287
Marlboro, New Jersey 90 Residential Units Daniel Lanni ext 248
Paterson, New Jersey 92 Residential Units Joseph Keenan ext 256 Jonathan Greenberg ext 258
Pennsville, New Jersey 72 Residential Units Matt Weilheimer ext 253
Bethlehem, Pennsylvania 62 Residential Units Robert Holland ext 285
Plainfield, New Jersey 42 Condominium Units Barry Waisbrod ext 272
multifamily. retail. office.
www.kislakrealty.com 732 750 3000
The Kislak Company, Inc.
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