22 — September 2024 — Fall Preview — M id A tlantic Real Estate Journal
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By Tom Consiglio, Resource Realty Of Northern New Jersey Surges to Tempered Paces: CRE across NNJ and Orange/Rockland County NY Remains Dynamic
T
he unofficial close of summer – and the run up to year end – marks
enduring resilience that has fed steady activity, other prop - erty sectors – many of which are reinventing themselves – have maintained a more tem - pered yet steady pace. These trends are reflected in Resource Realty of Northern New Jersey’s (RRNNJ) latest leasing and sales transaction activity over the course of a recent eight-week period. During this time, the firm arranged the sale of a stand - alone single-story warehouse property spanning a 5.5-acre parcel as well as a series of light-industrial/distribution
center leases across Essex, Morris and Bergen counties. In addition, RRNNJ com - pleted nearly 30,000 s/f in office leases, including one new headquarters location on behalf of a high-profile profes - sional services firm, and final - ized a ground-floor retail lease in a newly developed class A suburban-downtown office center at the Morris/Essex County boundary. Streamlining Supply Chains: E-commerce Boosts Warehouse Demand The industrial real estate market in Northern New
Jersey and Orange/Rockland County continues to be a ro - bust pocket. Strong demand from e-commerce giants, lo - gistics companies and manu - facturers has fueled steady leasing activity and building sales, from existing class B and class C assets to newly constructed and under-de - velopment spec facilities. The ongoing e-commerce boom, fed by exponential growth in recent years, has led to a persistent need for storing and distributing products efficiently as well as manag - ing inventory to minimize
delivery times and costs. Secondary to supply-chain optimization advantages is the area’s favorable geographic position and transportation in - frastructure. As a pillar within the Northeast Corridor, the region provides easy and direct access to major U.S. markets and population centers, includ - ing New York City. Further - more, an extensive highway network inclusive of the Inter - state 95 corridor offers seam - less connectivity to other parts of the country while New York and New Jersey port facilities provide access to international trade routes. Rounding out this network is an extensive rail and air-cargo services in - frastructure, offering two more channels through which goods can be moved. One interesting trend that took hold in 2024 and is expect - ed to extend into 2025 is the in - dustrial/warehouse acquisition movement where end-user ten - ants are now wearing owner/ landlord “hats.” In addition to creating a level of stability and certainty, ownership has its advantages when it comes to property-value appreciation, tax benefits, control and flex - ibility and generation of rental income and/or capital gains. Retailers and Landlords Continue Re-Positioning for Success The Northern New Jersey retail market has been charac - terized by a dynamic interplay of factors – all of which are a response to ever-evolving consumer preferences borne of the pandemic. While tradi - tional brick-and-mortar stores continue to face competition from online retailers, demand is sustained for unique retail spaces that offer immersive ex - periences and a sense of com - munity. This trend is evident in the increasing popularity of adaptive and mixed-use devel - opments that combine ground- floor retail with residential and small-office components. Given the current era, retail - ers and landlords are effec - tively and creatively position - ing themselves for success in this evolving landscape, with positive indications pointing toward the industry’s ability to adapt and thrive. Business and Medical: The New Office Dynamic The North Jersey office mar - ket has been undergoing – and continues to experience – a continued on page 40
a dynamic pe - riod for com - mercial real estate leas- ing and sales across North - ern New Jer - sey as well as New York State’s Or -
Tom Consiglio
ange and Rockland Counties. While certain sectors like in - dustrial/warehouse and retail- anchored mixed-use properties have demonstrated a level of
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