The commercial real estate market continues on a positive trend, one that the experts at NAI Fennelly have seen happening for the last 12 to 18 months.
NAI Fennelly President Jerry Fennelly cites the Princeton area in particular as ripe for positive change. He’s seen international markets open up and expand here, including the expansion of a Japanese company, a new India-based company, and a new Chinese school for math and science.
“The branding of the Princeton name carries weight here and internationally,” he said. “We’ve seen great growth in these sectors.”
Fennelly also has noted a retooling of the business model, with a flurry of smaller transaction in the first quarter. These tend to be start-ups, mergers, and acquisitions. In some cases, the latter are divisions spun from larger companies funded by private equity, another sign of increasing demand.
“That activity is aggressively happening throughout the market,” Fennelly added. “It’s a regeneration of the economy supported by money being directed to mergers and acquisitions, and new start-ups.”
In the greater Princeton area, the commercial real estate market continues to be strong in three segments: education, technology, and medical. Fennelly sees continued positive activity in this important mix.
“What’s interesting is that education is going through a change because of the Internet and at-home learning,” he noted. “This can impact our community colleges in particular, but all of higher education is looking at how to compete. The leader in this area, Thomas Edison State College, has been teaching adults to learn at home for decades. ‘Bricks and sticks’ are not as important as the technology; education will evolve and change rapidly to meet the demand.”
In the medical area, Fennelly says $1.3 billion was spent on new hospital construction in the least year, which resulted in moving a lot of medical practices. Those practices also are changing as they adapt to “ObamaCare,” creating a lot of activity in that segment.
“This is just the beginning of the regeneration,” he said. “Exciting times are ahead for us. It’s never a smooth ride, but the bumps hopefully won’t be as big and we’ll eventually get back to 3 percent GDP growth and a job market that’s buoyant. We are moving in the right direction.”
NAI Fennelly has been providing professional real estate services to the New Jersey business community since 1986. The company strives to develop lasting relationships by offering the professional personnel, resources, and innovative technologies needed to ensure clients the best services available. Since 1998 the partnership in NAI Global allows the company to deliver services seamlessly nationally and internationally. NAI Fennelly can be reached at 609-520-0061 or Fennelly@Fennelly.com
Gerard Fennelly, President. NAI Fennelly. 609-520-0061. Fax: 609-631-9208. www.fennelly.com.