M id A tlantic Real Estate Journal — Owners, Developers & Managers — June 17 - July 21, 2022 — 11C
www.marej.com
O wners , D evelopers & M anagers
By Jeffrey Otteau, Hudson Atlantic Realty New Jersey State Of The Market
D
eal flow in New Jer - sey’s commercial real estate market
NJ CRE PRICE INDEX Aggregate of all Sectors
NJ CRE Transaction Volume
$12.8
150
$12.0
The growing appetite for investment property in New Jersey is also evident in ag- gregate selling prices for these assets which increased by a staggering 52% in the 1st quarter of 2022. Looking to the future, future market performance is less clear as storm clouds form on the horizon from inflation - ary pressures, rising interest rates, and an approaching demographic cliff. Hudson Atlantic’s unparalleled market intelligence and deal making skills are designed to guide market participants in review - ing their investment strategy to mitigate risk and maximize investment return. remains strong to this point, despite headwinds from rising interest rates and fears of an approaching economic reces - sion. Aggregate investment sales volume in 2021 totaled $12 Billion, reflecting a 46% over the prior year to set an all-time record for the state. This compares to a 10% de - cline in 2020 due to Pandemic, and a forecasted $12.8 Billion in 2022. Looking more closely at the sector level, the largest compo - nents of New Jersey’s invest - ment sales in recent years are Industrial and Apartment properties, accounting for market shares of 36% ($4.4 B) and 30% ($3.6 B) respectively. Real estate investors continue to view these property types as being most desirable due to more durable income streams which benefit from inflation - ary pass-through effects into rental rates. The growing appetite for in - vestment property in New Jer - sey is also evident in aggregate selling prices for these assets which increased by a stagger - ing 52% in the 1st quarter of 2022. On an indexed basis, selling prices for commercial real estate in the state are 43% higher than in 2016, setting another record high. Jeffrey Otteau is man- aging broker of Hudson Atlantic Realty located in Matawan, NJ. MAREJ
143
$12.0
140
$9.1
$10.0
$8.2
$8.1
$7.6
129
$7.7
130
$8.0
$6.8
$5.4
121
$6.0
$4.5
120
117
$4.2 $4.6
$4.1
113
112 113
112
112
$4.0
$3.0
111
$2.4
110
109
109
108
110
107 107
106
$2.0
101 102
101
100
98 98
100
97
$0.0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 (est)
94
90
Multi‐Family
Industrial
Office
Retail
Hospitality
Hudson Atlantic Realty Advisors A Commercial Real Estate Brokerage Company
Investment Sales Specialists
Cutting Edge Market Intelligence
Unparalleled Deal Making Skills
Adam Zweibel
Jeffrey Otteau
hudsonatlanticrealty.com
732-374-9244
You only get to sell your property once, so choosing the right brokerage team matters
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