The Association of Industrial and Office Real Estate Brokers Hosted Developers Night in Teaneck with the CRE Panel
The Association of Industrial and Office Realtors of New Jersey recently held its 27th annual Developers Night event at the Marriott at Glenpointe Hotel in Teaneck.
A panel of seasoned real estate experts provided their perspective on the state of New Jersey’s office, industrial and multi-family housing markets, updated the audience on growing trends and offered forecasts for the future. coming year.
Hundreds of guests from the commercial real estate industry were on hand for the event, which included panelists Matt Campbell, Director of Land Acquisition, Toll Bros.; Ian Christ, Managing Director, Prudential Real Estate; Jeff Milanaik, Partner, Northeast Region, Bridge Industrial; Michael Pembroke, Chief Operating Officer, Russo Development; Ryan Sanzari, President, Alfred Sanzari Enterprises; and Jonathan Schultz, Managing Director, Onyx Equities.
“We were fortunate to have this panel, whose expertise and experience spans decades in the industry,” said IOREBA President John Johnson, who served as panel moderator.
Panelists agreed that the past two years have been a transformative time for the CRE industry and that it is essential to stay ahead of the trends. They also agreed that the market continues to dominate certain asset classes, while COVID-19 continues to dominate others, and that the trends that developed during the pandemic are here to stay for the foreseeable future.
Despite the current pandemic-related challenges, opportunities exist for New Jersey’s CRE industry. Demand for logistics, industrial, data center, life sciences and multi-family developments has been extremely strong. The industrial section is the hottest sector, dominating the others. The question is, are these areas becoming overheated and overvalued? Time will tell us. Industrial space in the Meadowlands, for example, recently hit $28 a square foot, Milanaik noted.
Other key takeaways include the opinions of panelists such as Schultz, who suggested that ways to attract employees to the office will depend on creating contemporary amenities and providing hospitality features in office buildings today.
New Jersey continues to undergo a repositioning of its many corporate campuses which are becoming functionally obsolete, with archaic zoning in place. The pressure is mounting to design a new kind of office by creating features that will keep businesses coming back.
Sanzari is optimistic about letting Class A office buildings and has seen an increase in activity to near pre-pandemic levels.
Developers continue to reposition office buildings into multi-family housing with living, working and playing amenities, and with nearby retail, that will appeal to the community and businesses. Multifamily vacancy rates are below 1.5%. Panelists Pembroke and Campbell believe collaboration between development companies will be necessary in today’s tight market to move forward.