There’s a light at the end of the commercial real estate tunnel and, according to Jerry Fennelly, things are rapidly changing to the positive.
The difficult times of the past two years are giving way to a brighter tomorrow. Owners, brokers, and tenants suffered through right-sizing and related economic woes and have come out on the other side as companies begin to buy buildings to house their operations and small sector industrial users are moving up to larger spaces.
"We’re looking at an opportunistic time," said Fennelly, president of NAI Fennelly. "The problem in a real estate recession is you get stagnation. What we’re starting to see is movement. Purchases are causing a slight rise in valuations, and that brings in the investor market. As the investor market lights up the industrial sector, that will flow through to the office sector, which is evident in sales such as Carnegie Center and Forrestal Village."
And he predicts more to come.
"The national expansion of companies is occurring once again," he added. "We’re in the early stages, but there is growth."
Fennelly says there also is small growth accruing in the leasing market. Vacancies on Route 1 have gone from 21 percent to 17 percent over the last two years.
"That certainly shows a positive trend," he explained. "Overall, we’re bouncing off the floor and looking at more positive experiences."
Unfortunately, Fennelly believes it will take a bit more time for unemployment to do down, which can be the linchpin in the entire recovery equation. Again, there’s positive movement afoot, as big retail chains start hiring once more.
"The signs of life are there. There is going to be a recovery over the next 12 to 18 months, a significant one," Fennelly stated. "And at the end, we’ll say ‘what recession?’"
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