6A — November 24 - December 7, 2017 — Professional Services — M id A tlantic

Real Estate Journal


P rofessional S ervices

By Alessandro Conte, CCIM, SIOR, Blau Berg Has Commercial Real Estate Peaked?


climate of all markets. Alessandro Conte, CCIM, SIOR is an executive vice president at The Blau & Berg Company. n The Blau & Berg Co. reflects on the military service of its fellow employees SHORT HILLS, NJ —With Veterans Day approaching, The Blau & Berg Company , a prominent commercial real estate brokerage firm in the New Jersey and Tri-State area since 1932, is taking the oppor- tunity to reflect on the military service of its fellow employees. Remembering those who have served our country throughout its history takes on added im- portance on this day, however The Blau & Berg Company also strives to recognize these key members of our community throughout the year. Kenneth F. Crimmins , CEO & Chairman, is a veteran of the U.S. Navy. After gradu- ating from Officer Candidate School in Newport, RI in 1966, he was assigned duty aboard the U.S.S. Galveston as a weap- on’s officer. During his time in theMediterranean, the Six-Day or June War of 1967 occurred as Israel invaded the Egyptian Sinai. Ken also served a one- year tour in Vietnam, where he was awarded the bronze star, and left the Navy in 1969 as a Lieutenant. Brad Jacobs , assistant di- rector, is a veteran of the U.S. Army Signal Corp. He enlisted in 1997 as a Private First Class and was part of the Army’s military intelligence, which is responsible for collecting and providing essential informa- tion that often saves the lives of solders on front lines. With the recent hiring of Christian Benedetto , direc- tor of business development, The Blau & Berg Co. is proud to be in the planning stages of a long-term commitment to giving back to those who sacri- ficed so much on behalf of our country. The program will be announced in early 2018, but, in the meantime, the company is committed to supporting Christian’s ongoing efforts by sharing his story and the work he does to support his fellow service members. After enlisting in the United States Marine Corp in the late 1980s, Christian Benedetto continued on page 14A

he current commer- cial real estate envi- ronment has investors

buyers a comfort level on the acquisition. Users are easing back into the driver’s seat of this market. Typically, a user can weath- er the volatility of a real estate market better than the inves- tor. Ultimately, the user will need the space regardless of values, while the investor will need to replace a tenant at a potentially lower rate. This factor, coupled with the thin margins of today’s investment sales, makes investors more conservative, allowing users to get back in the market. Landlords have been the

big winners in recent years - rental rates have nearly doubled since 2009, mak- ing their investments more valuable and profitable. The concern for them is how long should they reap the rewards of high rentals before selling off at peak prices. If they sell to soon in this cycle, they may miss out on these rich rents. If they ell too late in the cycle, they may miss out on the high valuation. Developers are facing the biggest hurdles today. Land values are also at all-time highs. Thinning margins and

competition raise risk for developers, but the biggest obstacle continues to be the entitlement process. Develop- ers are concerned that if the market turns for the worse the valuations for the land today may hinder leasing potential of a fully entitled project that can take up to two years. Overall, the landlords, users and developers we are working with still feel there is meat on the bone and that this current cycle will continue for at least a couple of years, not with- standing any outside political turmoil that can change the

a n d u s e r s alike in a con- stant state of “where are we i n th i s cycle”. The biggest issue today is won- dering if we have peaked

Alessandro Conte

and if a purchase today could lead to buyer’s remorse tomor- row. Brokers are now chal- lenged with not only justifying purchase price, but also giving


Specialists in Port-Related Industries Emphasizing Transportation & Logistics Over 7,200,000 SF & 90 Acres Leased or Sold in 2016


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