Recovery bodes well for commercial market.While the entire economic picture has not been fully painted, recent signs are all pointing in the right direction. By all indications, the recovery has begun and corporations are making plans for the future. It's too early to determine how sustainable the recovery is but most experts are predicting job growth may be on the horizon. Job growth and confidence are the best news possible for the commercial real estate industry. Without either, there is no new absorption of space, no sustained demand and no new construction. Presently, tenants are able to negotiate a strong position in the current real estate market but we have seen indications of increased activity which will begin to compress vacancy rates going forward. New Jersey has been fortunate to not feel the full effects of the economic slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. , which severely impacted other parts of the country. Our diverse economy, highly skilled labor force and affluent residential communities were buffers against the national recession. Furthermore, while it's true that New Jersey is losing manufacturing jobs, it is gaining well-paid, highly specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. jobs in a variety of sectors including financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. , pharmaceutical, insurance and technology. New Jersey is one of the few states which enjoy fairly stable real estate sectors including office, industrial and retail, providing a hedge against a slowdown in one particular category. Corporations that are in an expansion mode are beginning to recognize the inherent advantages of the current tenants' market. Landlords, eager to make deals and refinance Refinance 1. When a business or person revises their payment schedule for repaying debt. 2. Replacing an older loan with a new loan offering better terms. Notes: When a business refinances they typically extend the maturity date. assets, are being very aggressive with free rent and concessions to lock in longer lease terms. With a plethora plethora /pleth·o·ra/ (pleth´ah-rah) 1. an excess of blood. 2. by extension, a red florid complexion.pletho´ric pleth·o·ra n. 1. of sublet sub·let tr.v. sub·let, sub·let·ting, sub·lets 1. To rent (property one holds by lease) to another. 2. To subcontract (work). n. options available, tenants are also offered many great alternatives, and in some cases fully furnished fur·nish tr.v. fur·nished, fur·nish·ing, fur·nish·es 1. To equip with what is needed, especially to provide furniture for. 2. and wired units of space. Additionally, entrepreneurial users have chosen to become real estate owners as the low cost of financing and enhanced depreciation benefits have created opportunities. Previously, ownership was not an attractive option for many tenants, whereas now, they are willing to pursue creative occupancy solutions. Whether these commercial real estate and economic trends will continue is yet to be determined. But what can be expected is that New Jersey will continue to lead the nation in economic performance and sound real estate fundamentals. BY DOUGLAS A. GAFFNEY, SENIOR MANAGING DIRECTOR, THE SCHULTZ ORGANIZATION/ TCN TCN Tetracycline TCN transparent content negotiation TCN Third Country National(s) TCN Topology Change Notification TCN Transportation Control Number TCN Train Communication Network TCN Transaction Control Number WORLDWIDE |
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