4A — January 2024 — 2024 Forecast — M id A tlantic Real Estate Journal
www.marej.com
2024 F orecast
By Nat Gambuzza, Berkadia A Deep Dive into the 2024 Real Estate Forecast for New Jersey
A s the real estate mar- ket continues to evolve, New Jersey stands at
the market is poised to see an uptick in transaction activity moving through 2024. Markets across the U.S. saw a decrease in deal activity over the last 18 months due to a tough lending environment, increased interest rates, and economic uncertainty. October of 2023 saw a peak of 5 percent on the 10-Year Treasury Yield, which naturally caused inves- tor hesitation. Today, it has dropped to the low 4’s, provid- ing investors some comfort coming into 2024. The Fed has also changed its sentiment on
raising rates further, taking a more accommodative approach. 2024 optimism can be found with the reduction of inter- est rates, lenders who have been sidelined reentering the market, and determina- tion from buyers and sellers to start transacting. All of this is happening while the fundamentals for apartments in NJ remain at the top of all national rankings. Regional Dynamics New Jersey’s real estate market has diversified pock - ets of capital for investors
to tap versus other parts of the country. Private capital has been and will continue to be the first movers in this cycle shift. Fortunately, New Jersey has plenty of it coming from family offices, high net- worth individuals, syndica- tors, and business owners outside of real estate. New Jersey also benefits from capital outside of the market targeting New Jersey. Northern New Jersey ranks as one of the highest in the country for rental
growth at 3.4 percent. This is happening while occupancy rates are climbing to north of 97 percent. All of this is tak- ing place as approximately 15,000 units of new supply enter the market. Outlook for 2024 The 2024 real estate fore- cast for New Jersey looks very promising. In fact, in November of 2023, New Jer- sey had the highest national lease renewal rate (81.5 per- cent) as compared to other MSAs. This year is providing a clearer line of sight for the multifamily sector, paving the way for transactions and more optimistic investors. Nat Gambuzza is se - nior managing director at Berkadia. MAREJ NAIOP NJ to host 2024 annual meeting & CRE Outlook SHORT HILLS, NJ — NAIOP New Jersey’s “An- nual Meeting and Commercial Real Estate Outlook,” which will be held on Thursday, Janu- ary 25, will include the election of the commercial real estate development association’s 2024 officers and trustees. Richard Barkham , global chief economist, head of Global Research & head of Americas Research with CBRE , will address the current global, regional and local economic climate. Following his keynote presentation, a panel of in- dustry experts will delve into the connection between local economic trends and the state’s commercial real estate sector. Confirmed panelists include Morris A. Davis, Paul V. Profeta Chair of Real Estate and professor of Finance and Economics, and academic di- rector, Rutgers Center for Real Estate ; Will Irving , associate professor of Prac- tice, Edward J. Bloustein School of Planning and Public Policy ; and Jeffrey G. Otteau , managing partner and chief economist, Otteau Group Inc. , and managing broker, Hudson Atlantic Realty Advisors, Inc ,. The January 25 event will take place at the Hilton Short Hills, 41 John F. Kennedy Parkway in Short Hills. Net- working and cocktails begin at 5 p.m., followed by dinner and the program. MAREJ
the forefront of upcoming opportuni- ties that are influenced by the state’s unique eco- nomic condi- tions. With pent up de- mand from
Nat Gambuzza
buyers who were inactive last year and plenty of dry powder ready to be deployed,
BUILT FOR THE NOW. AND THE NEXT. ®
BUILT FOR NEW JERSEY
MORTGAGE BANKING INVESTMENT SALES SERVICING
© 2024 Berkadia Proprietary Holding LLC. Berkadia® is a trademark of Berkadia Proprietary Holding LLC. Commercial mortgage loan banking and servicing businesses are conducted exclusively by Berkadia Commercial Mortgage LLC and Berkadia Commercial Mortgage Inc. This advertisement is not intended to solicit commercial mortgage loan brokerage business in Nevada. Investment sales / real estate brokerage business is conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Tax credit syndication business is conducted exclusively by Berkadia Affordable Tax Credit Solutions. In California, Berkadia Commercial Mortgage LLC conducts business under CA Finance Lender & Broker Lic. #988-0701, Berkadia Commercial Mortgage Inc. under CA Real Estate Broker Lic. #01874116, and Berkadia Real Estate Advisors Inc. under CA Real Estate Broker Lic. #01931050. For state licensing details for the above entities, visit www.berkadia.com/licensing 0124-019MH.
Made with FlippingBook - professional solution for displaying marketing and sales documents online