M id A tlantic Real Estate Journal — Fall Preview — September 17 - October 21, 2021 — 13C
www.marej.com
N ew J ersey B roker
By Jonathan Glick, Sheldon Gross Realty New Jersey’s industrial real estate market: Where it is and where it’s going
S
period of only four years. It may not be until the pan- demic’s truly over and individ-
the largest such number I’ve ever had, and I’d be happy to list more. But it demonstrates
Somerset counties. Of par- ticular interest, companies are locating further from ar- eas they’d initially targeted because of a lack of available properties. It’s also noteworthy that listing brokers can be hard pressed to effectively manage the volume of inquiries. These are coming in via office phone, mobile, text and email, related to nearly every property – re- gardless of location or listing price. It’s crucial not to miss a single inquiry. Speeding a deal along to a successful conclu- sion requires identifying the
buyer or tenant who’s the most appropriate fit So, missing one call or text could mean the difference between a quickly concluded transaction and ad- ditional days or even weeks of intense marketing efforts. There’s definitely opportu - nity in industrial real estate sales. Yet, given the unique circumstances of the 2021 market, that’s only going to happen through a particularly healthy dose of hard, nose-to- the-grindstone work. Jonathan Glick is execu- tive vice president, Shel- don Gross Realty. MAREJ
ince the pandemic be- gan, I’ve seen a range of prognostications about
where the c o m m e r - cial real es- tate sector i s headed. Some were posi t ive, a f e w m o r e were nega- tive. Given
By devoting time tomarket research, strategic planning, and cultivating our network, we’re able to find consistent success in this market.
uals are comfortable resuming such normal activities as buy- ing and selling real estate, that we see a recovery. But for me, limitation on inventory hasn’t been a major concern. I’m currently listing more than 30 distinct properties, either for sale or lease. That’s not
there’s a vigor in this market, with people looking to make deals and expand their busi- nesses. Geographically, we’re seeing activity throughout all those areas where we most often conduct business, including Monmouth, Middlesex, and
Jonathan Glick
the nuances of our business – from geography to the dif- ferent types of properties we deal with – there was at least a kernel of truth in all these projections. Most importantly, what we’ve been keeping in mind is that despite the lingering threat of COVID, plus an on- going economic uncertainty, there’s opportunity out there. This is particularly true re- garding industrial sales. By devoting time to market re- search, strategic planning, and cultivating our network, we’re able to find consistent success in this market. Conducted in parallel with my colleague Matt Leonelli, my professional efforts are almost exclusively focused on the New Jersey market. My clients are primarily non-in- stitutional owners of multiple industrial buildings, many of which cater to unique or niche tenants. And in this sector, we’re currently seeing unprec- edented valuation. We believe the tipping point came slightly more than a year ago, in the portions of northern and central New Jersey within a one-hour drive of Manhattan or Brooklyn. As buyers and sellers alike hunkered down to ride out the pandemic, inventory began falling off. Prices rose quickly … and then the geographic scope of this phenomenon ex- panded. Today, in the second half of 2021, it’s statewide. As an example, back in 2017 we had a free-standing ware- house building that was less than 50,000 square feet, under contract to sell for $106 per square foot. Unfortunately, the contract purchaser was unable to close due to incom- plete environmental paper- work. Now, four years later, the issue is nearly resolved … and the price has been adjusted to $162 per square foot. This is just one example among many I could cite of a 50% value increase during a
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