Multi-family Q&A.Richard Stadtmauer, a managing partner with Kushner Companies of Florham Park, N.J., recently served as a panelist pan·el·ist n. A member of a panel. Noun 1. panelist - a member of a panel panellist panel - a group of people gathered for a special purpose as to plan or discuss an issue or judge a contest etc at the 14th Annual Commercial Property World 2002 Conference held at the Marriott Marquis in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. . In the following Q&A interview, he discusses current and future trends for investing, developing and marketing in today's multi-family sector. Question: Where are we in general in the economic cycle? Answer: Fortunately, the rental residential real estate industry is currently regaining its foothold foot·hold n. 1. A place providing support for the foot in climbing or standing. 2. A firm or secure position that provides a base for further advancement. foothold Noun 1. . After Sept 11, we experienced an increase in "for sale" product demand from individuals seeking to relocate re·lo·cate v. re·lo·cat·ed, re·lo·cat·ing, re·lo·cates v.tr. To move to or establish in a new place: relocated the business. v.intr. to the suburbs. At the same time, we saw a decrease in activity within the rental market. Six months later, the industry is recovering from that 30day loss in the tragedy's aftermath, as few tenants are leaving their space, resulting in increased demand. The current trend should have a positive impact upon multi-family product in New Jersey. Q: How is this cycle different from previous recessions? A: Although the, recent economic downturn may be tied to numerous contributing factors, this cycle's origin is not within the real estate market. Rather, failure of the once-lucrative telecom and high-tech entities-were at its core. Unlike past recessions, this phase seems to be brief and more shallow than it was one year ago. Therefore, real estate's growth projections are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op . Q: What impact has the economy had upon rental rates? A: Although projections for this year vary by market, New Jersey's average rental increase should be between 2 to 3%. In early 2001, increases were between 5 to 6%, however these tapered ta·per n. 1. A small or very slender candle. 2. A long wax-coated wick used to light candles or gas lamps. 3. A source of feeble light. 4. a. off significantly during the last half of the year. Again, this reversal indicates a slow yet steady rise in the economic confidence level. Q: How about the "Gold Coast" areas of New Jersey? A: In these areas prices have actually declined slightly due to an oversupply o·ver·sup·ply n. pl. o·ver·sup·plies A supply in excess of what is appropriate or required. tr.v. o·ver·sup·plied, o·ver·sup·ply·ing, o·ver·sup·plies of rental properties. As new high-end apartment projects continue to come on line, the market is slightly saturated and projections indicate that it will continue through the remainder of 2002. |
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