The first quarter of 2016 continues to show positive trends in the commercial real estate market in New Jersey. Most year-over-year trends in New Jersey indicate continued gains over last year. The strongest gains have occurred in industrial space with a 6.1 percent gain in year-over-year asking price per square foot, and a 5.2 percent gain in industrial rent/lease prices. Middlesex County continued to have very strong gains in industrial asking price per square foot of 17.2 percent year-over-year and 19.6 percent gains in industrial rent/lease prices.
Average Days on the Market for Sales
Data from Loopnet. “Metro” is New York, New Jersey and Pennsylvania.
Office: NJ: 255, Metro: 275
Industrial: NJ: 299, Metro: 305
Retail: NJ: 198, Metro: 206
Economic Indicators Remain Positive in New Jersey
Interest Rates: Per Bankrate, the 30-year fixed mortgage is 3.66 and the 15-year fixed mortgage is 3.01 percent as of May 10. The rate on 10-year U.S. Treasury bonds is 1.75 percent (as of May 10, 2016). The prime interest rate is 3.5 percent. A low interest rate environment currently exists, and this is a positive indicator for the commercial real estate market.
The Job Market. The New Jersey unemployment rate was 4.4 percent for March, 2016, compared to a national rate of 5.0 percent. Unemployment rates continued to be low in March of 2016 across the following counties: 4.3 percent Mercer, 4.4 percent Middlesex, 4.4 percent Burlington, 5.5 percent Ocean, and 4.5 percent Monmouth. These historically low unemployment rates are positive key indicators for the commercial real estate market.
I am excited to say that all of these positive trends and indicators mentioned above continue to point toward a rebounding commercial real estate market for the first quarter of 2016 in New Jersey and surrounding areas.
About Us: Ridolfi & Associates, LLC is a full service commercial real estate company serving Central New Jersey and beyond. The company’s headquarters are located in Hamilton. The firm currently has 14 licensed real estate agents and two administrative assistants who service clients’ needs. Our formula for success is to remain current on all the real estate market conditions that may affect the markets we service. We provide our clients with personalized, knowledgeable, and professional service every step of the buying/selling or leasing process. We specialize in:
• Tenant/Landlord Representation
• Business Brokerage
• Consulting Services
• Property Management
• Property Development
Our offerings include: Medical and professional offices, retail stores, restaurants, warehouse/ industrial buildings, land/development sites, and investment properties. Let us put our premier marketing service to work for you.
Joseph R. Ridolfi & Associates, 1245 Whitehorse-Mercerville Road, Suite 402, Hamilton. E-Mail: firstname.lastname@example.org. www.ridolfi-associates.com. 609-581-4848; fax 609-581-5511. See ads, pages 14 and 15.