Warehouse space continues to be very strong especially in the 100,000 to 300,000 square foot range. With the expansion of e-commerce this trend is expected to continue throughout 2017. The 1,000 to 20,000 square foot warehouse space is also very strong, especially for contractors and others looking for this type of space.
The construction industry is expected to continue to grow, especially the housing market and also for companies competing to rebuild our infrastructure and take advantage of large proposed infrastructure spending bills currently being discussed by the Trump Administration. The inventory in warehouse space is very low and investors are coming from New York and North Jersey pushing prices up in central New Jersey.
Multi-family income properties are also very attractive for investors and prices continue to increase for these types of investment. Office and retail space has been flat in the first quarter of 2017.
One bright spot is the expanding urgent care facilities markets and some assisted living facilities. Also, some retail chains like Wawa, QuickChek, Panera Bread, Dunkin’ Donuts, and Chick-fil-A continue strong expansions into New Jersey. Interest rates have edged up slightly with the Federal Reserve raising their short term borrowing rate .25 points at their last two meetings. Further interest rate hikes are expected later this year.
Unemployment numbers continue to be low and a positive sign for a recovering market. There are also corporate and small business tax cuts and other incentives being proposed by the current administration that could assist with small business expansion in the near future.
We are confident that 2017 will continue the progress we made last year in the commercial real estate market and continue to move forward in a positive direction
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. See ad, page 23.
