Commercial real estate group optimistic about NJ
The New Jersey chapter of The Commercial Real Estate Development Association, in its outlook for 2020, sees a continuation of the hot industrial and office commercial real estate market in the state.
The National Association of Industrial and Office Properties in New Jersey unveiled its expectations for the state's commercial real estate market at a meeting Monday evening at the Short Hills Hilton.
Association CEO Mike McGuinness said for New Jersey commercial real estate, "we see a continuation of the hot industrial market. We see a continuation in the regeneration of some of the older urban areas and even some of the suburban areas. And we see more investors going into the secondary markets of the state."
The association defines the industrial market as warehouses, distribution centers, e-commerce centers and even data centers. McGuinness said some of these warehouses and distribution centers are doing light assembly work.
"The New Jersey region has a very plentiful supply of consumers," McGuinness said. "We have a great network of transportation that makes it ideal for these distribution warehouse warehouses and e-commerce centers to be located here. And that's what people want these days. They want immediate access to the goods that they want. So they want same day delivery, overnight."
McGuinness also said the association sees a slight migration of increased industrial space utilization away from New York and Philadelphia, to areas such as Warren County and Gloucester County. It seems the same with office use, but to a lesser extent.
And as we move forward in the year 2020, McGuinness said, "our public policymakers here in New Jersey need to have a long-term view of the economy and why people like to live here, and why businesses should be here. And I think that we need to be continually looking ahead at what to expect and we need to be ready for any type of disruptions or opportunities that come our way."
Joe Cutter is the afternoon news anchor on New Jersey 101.5
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