12A —April 22 - May 19, 2022 — Spring Preview — M id A tlantic Real Estate Journal
www.marej.com
N ew J ersey B roker By Jonathan Glick, Sheldon Gross Realty
Challenges facing the purchase or lease of an industrial property
property, the cha l l enges you ’ l l face this spring will be quite similar. And, you might as well plan on these vari- ous hurdles W
hether you’re look- ing to purchase or lease an industrial
ability. For several years, the media and everyone else has been discussing how difficult it is to find residential property. It’s a nationwide issue, the problem related to industrial properties is actually rather similar. It’s basically the clas- sic demand situation – more individuals and companies want warehouse space and manufactured buildings than are available, so when a pro- spective buyer or tenant finds something that meets their needs, they have to pay a premium. The same, by the way, holds true for vacant land
massive structures of the type that address the needs of small and midsize businesses. There just aren’t enough … and it remains the case that very few are under construction. This said, if your plan is to engage in one or more in- dustrial real estate transac- tions – despite the challenges we’ve mentioned – I have some specific advice both for those who have a property to sell or lease and those seeking to buy or rent. For landlords or sellers, en- suring that a deal is secure is always a priority. In the short-
to mid-term, this will be even more true. Every potential tenant or buyer must be thor- oughly, vigorously screened to confirm they’re capable of withstanding the types of financial stormy days we’ll almost certainly experience in coming months. If there’s any doubt, it’s probably advisable to reconsider the entire trans- action. After all, in the current market, there should be no shortage of those interested in your industrial property. For prospective buyers or tenants, it’s crucial to ac- curately assess the types of improvements or structural alterations that may be neces- sary on a property of interest. No matter how much a given location may seem ideally suited to the various needs at hand, you need ironclad confirmation that a landlord or seller will be able to de- liver what has been agreed to. Supply chain issues won’t be going away any time soon, so there needs to be appropriate concern related to delivery of construction materials, con- tractor availability, and even securing of necessary permits. Without peering too far into the future, my prediction is that industrial real estate rental rates and sale prices will continue rising for some time to come. The challenge for everyone involved in this sec- tor, whether on a full- or part- time basis, will be determining at what point these values will begin to level out. For three years now, industrial sales and leasing volumes have climbed to unprecedented lev- els, and I expect this trend to continue for the remainder of 2022, through 2023, and even into 2024. Jonathan Glick is execu- tive vice president of Shel- don Gross Realty. MAREJ continued from page 7A It’s time to wake up to the reality . . . these numbers will continue to rise even higher this year. Take preventive action and don’t let your business add to the cyber-attack statistics. If you’re unsure of where to be- gin when it comes to buffing up your cyber security practices, give us a call, and we will be glad to help. Michael Mullin is presi- dent of IBSRE, Inc. MAREJ
that can be utilized for outdoor storage. It’s a difficult environment, and there currently is no solution or resolution on the horizon. Of note, the reason the sup- ply of suitable properties is so tight is frustratingly simple – there just hasn’t been an appropriate level of construc- tion for quite some time. Of course, we’ve all seen massive, 200,000 s/f or even more ex- pansive distribution facilities being built – but what we’re talking about, and where the real need lies, are far less
Jonathan Glick
continuing on through the summer and beyond … be- cause they will. To begin with, there’s a significant issue with avail -
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