10A — January 2024 — 2024 Forecast — M id A tlantic Real Estate Journal
www.marej.com
2024 F orecast
By Jason Crimmins, CCIM, SIOR, The Blau & Berg Company 2024 Forecast: Navigating volatility, shifting trends, and the booming cannabis market
2 024 is projected to be a year of continued vola- tility in the real estate
considerable demand in the areas surrounding the ports of New Jersey and New York, as companies address solutions to the deficiencies in their critical last-mile e-commerce opera- tions. Vacancy rates have start- ed to rise, rents are stabilizing, while tue absorption rate has turned negative for the third straight quarter. Growth for the majority of the 3PLs and logistics companies has slowed. With all that said, the New Jersey industrial dynamics remain tight. As the new con- struction pipeline starts to
dry up, logistic demand and vacancy rates should gain their balance again. The office market, still bur - dened with excess inventory amidst a new world of hybrid work schedules, ended 2023 with a vacancy rate hover- ing around 25%. Companies are trying to determine how much space they’ll require go- ing forward. Office developers have pivoted to repurposing existing properties into mixed- use. Massive projects, such as the Riverton Development in Sayreville, one of the largest
over financial benefits versus perceived community concerns have resulted in contentious town hall discussions and strict zoning restrictions but legal cannabis is here to stay, and real estate will be one of the many beneficiaries. The overall economy pres- ents the largest unknown to all forms of real estate. Em- ployment cuts are occurring across most business models for efficiency and sustainabil - ity purposes. Capital markets continue to struggle to fill the gap between seller’s pric- ing expectations and buyer’s target values, resulting in longer periods of stagnancy with listings. Borrowing has become increasingly prob- lematic, with interest rates hovering near 15-year highs. The fed fund futures market has effectively priced in mul- tiple rate cuts in 2024, but the Federal Reserve has hesitated to to date as inflation data continues to be mixed. As always, the real estate market will continue to evolve and reinvent itself. Jason Crimmins, CCIM, SIOR, is the president and Broker of Record for The Blau & Berg Company, an independent, full-service commercial real estate bro- kerage firm providing ser - vices in the industrial, re- tail and office spaces. MAREJ The Blau & Berg Co. secures sale of ±1.42 acres on Tompkins, Rd., Newark, NJ NEWARK, NJ — The Blau & Berg Company has ar- ranged the sale of ±1.42 AC on Tompkins Rd. in Newark. Lau- ra Crimmins, SIOR , of The Blau & Berg Co. represented the buyer, Atlanta-based Axis Electrified Solutions. Jason Crimmins, CCIM, SIOR, Alessandro (Alex) Conte, SIOR, and Peter J. Murano, Jr., SIOR of The Blau & Berg Company represented the seller, 275 Pacific LLC. The site is earmarked to become NJ’s first high-end electric truck charging lot. Located near Newark Liberty International Airport and the NY and NJ port area, and with direct access to Rtes. 21, 9 and the NJ Tpke. MAREJ
redevelopment projects on the East Coast with more than 2 million square feet of residen- tial and commercial space, are going to become more the norm. Cannabis has become a time- ly contributor to the retail & in- dustrial markets. More than 50 dispensaries opened in 2023, bringing the total in state to 79 dispensaries in 18 counties. The Cannabis market brought in more than 800 million dol- lars in 2023 and is projected to easily surpass 1 billion in 2024, and this is just the beginning. In many small towns, the fight
industry, as the market capitulates to the expe- dited changes brought on by Covid and the pandemic: The indus- trial market remains sol-
Jason Crimmins
id, albeit a bit more tepid than the explosive period from 2021-2023. There remains
Elizabeth Metropolitan Logistics Center 103,912 - 299,999 Sq. Ft. Industrial Opportunity
830 Morris Turnpike, Suite 201, Short Hills, NJ 07078 973.379.6644 www.blauberg.com .
19.75 Acres TOTAL ACREAGE
196,087 Sq. Ft. BUILDING 1 103,912 Sq. Ft. BUILDING 2 53 Tailboards LOADING
174 Spaces AUTO PARKING 84 Spaces TRAILER PARKING
299,999 Sq. Ft. TOTAL BUILDING SIZE Q2 2024 ESTIMATED DELIVERY
40’ Clear CLEARANCE
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