Warehouse space continues to be very strong especially in the 100,000 to 300,000 SF range. With the expansion of e-commerce this trend is expected to continue throughout 2018. Also, the 10,000 to 30,000 SF warehouse space is also very strong, especially for contractors and others looking for this type of space like the recently endorsed cannabis growers and distributors in towns like Ewing and Trenton.
The construction industry is expected to continue to grow, especially those that take advantage of large proposed infrastructure spending bills currently being discussed by the Trump administration. The inventory in warehouse space is very low and investors are coming from New York and North Jersey and pushing prices up in Central New Jersey.
Multi-family income properties continue to be very attractive for investors, and prices continue to increase for these types of investments. Office and retail space has been flat in the third quarter of 2018. Interest rates have edged up with the Federal Reserve raising their short term borrowing rate another quarter point at their last four meetings leading banks prime rate to 5.25 percent. Another interest rate hike is expected later this year.
Unemployment numbers continue to be at historic lows and a positive sign for a recovering market. There are also corporate and small business tax cuts and other incentives being proposed by the current administration that could assist with small business expansion in the near future. We are confident that 2018 will continue the progress we made last year in the commercial real estate market and continue to move forward in a positive direction.
Joseph R. Ridolfi, Broker/ Owner, Joseph R. Ridolfi & Associates, LLC. 609-581-4848. www.ridolfi-associates.com.