Warehouse/industrial space continues to be very strong in the first quarter of 2018 especially in the leasing area. The inventory in warehouse/industrial space remains low and investors continue to be in search of these types of commercial properties.
Office and retail space acquisitions remained relatively flat with a high inventory remaining in the first quarter of 2018. Final projected commercial real estate vacancy rates/forecast for the first quarter is: office, 12.5 percent; retail, 12.2 percent; industrial, 8.1 percent; and multi-family, 6.1 percent (per NAR).
Medical office space, urgent care facilities, new development land sites, multi-family commercial buildings, and assisted living facilities remained in strong demand.
Mortgage rates have climbed slightly in 2018 up to approximately 4.42 percent for a 30-year fixed-rate with the prime rate increasing from 4.5 percent to its current level of 4.7 percent. This can be attributable to a strong growth in GDP of 2.3 percent in the first quarter of 2018.
Unemployment numbers in Mercer County rose slightly in the first quarter of 2018 to around 4 percent. With the economy improving, wages increasing, and businesses expanding we are confident that the commercial real estate market in central New Jersey will continue to move forward in a positive direction for 2018.
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 ridolfi@ridolfi-associates.com
