The second quarter of 2015 continues to show positive trends in the commercial real estate market in New Jersey. Most year over-year trends indicate continued gains over last year. The strongest gains have occurred in industrial space with a 3.5 percent gain in Y-O-Y asking price/ sf, and a 4.5 pecent gain in rent/lease prices.
Economic Indicators Remain Positive in New Jersey.
Interest Rates. Rates gradually increased in the second quarter of 2015 as many financial experts had anticipated. Most financial experts predict a slight interest rate increase later this year. The average 30 year fixed mortgage rate with zero points is 4.17 percent APR for a person with a FICO score over 740 in the NY/NJ/PA metro area.
The prime interest rate remains at 3.25 percent, the 10 year treasury bill as of July 24 is 2.25 percent, which is basically unchanged from last quarter. The average rate for one-year CD is 1.02 percent and 1.66 percent for a five-year bank CD per Bankrate.com. A low interest rate environment currently exists, and this is a positive indicator for the commercial real estate market.
The Job Market. The New Jersey unemployment rate was 6.5 percent for April, 2015, compared to a National rate of 5.4 percent. Unemployment rates remain low in April, 2015, across the following counties: 5.3 percent Mercer, 5.5 percent Middlesex, 5.7 percent Burlington, and 6.7 percent Ocean. These low unemployment numbers are positive key indicators for the commercial real estate market.
I am excited to say that all of these positive trends and indicators mentioned above continue to point toward a rebounding commercial real estate market for the second quarter of 2015 in New Jersey and surrounding areas.
About Us. Ridolfi & Associates, LLC is a full service commercial real estate company serving central New Jersey and beyond. The company’s headquarters are located in Hamilton, and currently has 14 licensed real estate agents and two administrative assistants that service clients’ needs.
Our formula for success is to remain current on all the real estate market conditions that may affect the markets we service. We provide our clients with personalized, knowledgeable, and professional service every step of the buying/selling or leasing process. We specialize in:
• Sales/Leasing
• Office
• Retail
• Industrial / Warehouse
• Vacant Land
• Development Sites
• Investment Properties
• Tenant/Landlord Representation
• Business Brokerage
• Property Management
• Property Development
• Real Estate Consulting and Advisory Services
Our offerings include: Medical and Professional Offices, Retail stores, Restaurants, Warehouse / Industrial buildings, Land / Development Sites, and Investment Properties. Let us put our Premier Marketing service to work for you.
Ridolfi & Associates,1245 Whitehorse-Mercerville Road, Suite 402, Box 3314, Hamilton 08619. E-Mail ridolfi@ridolfi-associates.com. www.ridolfi-associates.com 609-581-4848. Fax: 609-581-5511. See ads, pages 13 & 16.
Commercial Market Trends as of June 15 compliments of LoopNet
