When NAI Fennelly President Jerry Fennelly is asked about the commercial real estate market, there are two significant positive changes: the increase of mergers and acquisitions activity and an increase in sales of commercial buildings.
Because of these two points, there’s a decrease in supply, and a floor has been established in value that will lead to an increase in appreciation in the next 6 to 12 months.
"Because mergers and acquisitions are on the move, there’s an increased need for office space or for relocation through consolidation," Fennelly explained. "This creates activity, which is a very positive force in the commercial real estate market."
NAI Fennelly, as a global company, is uniquely positioned to serve the burgeoning mergers and acquisitions market. In general, this activity involves multiple markets and locations as companies try to establish new headquarters and consolidate locations.
"An increase in mergers and acquisitions means companies are maneuvering through different markets," Fennelly said. "It’s a global effect. A company may need to expand an office in Tennessee while closing one in Boston or overseas. Because of our global platform, we can serve clients as their one point of contact, which makes it simpler for them."
Fennelly advises clients to negotiate with strength and outlines the following steps for successful commercial real estate transactions:
• Hire a broker who represents your best interests, not the landlord’s.
• Develop a strategic plan and timeline to ensure a seamless experience.
• Evaluate all potential options using a LseMod analysis (a financial analysis tool used to evaluate mergers and acquisitions).
• Review all local area market information to be adequately informed.
• Benefit from dynamic negotiation techniques to guarantee a favorable transaction.
• Avoid the 10 hidden costs and tricks commonly found in a "standard lease."
We hear there’s a lot of bad news," he noted. "But there’s an underlying strengthening of the commercial real estate market, and we’re seeing a steady increase in valuation."
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.
NAI Fennelly. 609-520-0061, fax 609-631-9208.