Warehouse/industrial space continues to be very strong especially in the 25,000 to 300,000 SF range. The inventory in warehouse/industrial space remains low and investors continue to migrate south from the Brooklyn, New York, area in search of lower priced commercial properties.
Office and retail space has still remained relatively flat in the third quarter of 2017. Medical office space and urgent care facilities continue to expand into other traditional office/retail spaces. Commercial income-producing properties that include residential rental apartments has also been in strong demand.
The capital of New Jersey, Trenton, recently experienced a city-wide tax revaluation. The new revaluation has negatively affected commercial property values in Trenton, as many of the property owners experienced huge tax increases up to three times higher as a result of the revaluation.
This is causing many investors to shy away from Trenton income producing commercial properties. This huge tax increase is negatively affecting the return on investment that most investors require when they purchase commercial income-producing properties.
Interest rates have remained stable this quarter after three hikes earlier in 2017. Unemployment numbers continue to be low and a positive sign for a recovering market.
We are confident that the commercial real estate market in central New Jersey, excluding Trenton, will continue to move forward in a positive direction for the remainder of 2017.
Joseph R. Ridolfi is broker/owner of Ridolfi & Associates, LLC, a full service commercial real estate company serving central New Jersey and beyond. For further questions or comments they can be reached at: 609-581-4848 or e-mail firstname.lastname@example.org.