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Good times expected for New Jersey in new year.

Expect good times to continue in New Jersey's office and industrial real estate markets in the new year. Several underlying trends will result in a healthy commercial real estate market in the state for the foreseeable future.

Lack of New Development

With very little new spec space being created, vacancy rates will continue to decline.

Healthy Economy

Historically low unemployment and a diversified economic base in New Jersey means that our businesses are doing well and expanding.

Redevelopment Offers a Lower Cost Alternative

With an ample supply of repositioned B and C buildings on the market, tenants are being drawn to these projects for their lower costs and quicker delivery.

Dot. com Explodes

Virtually non-existent just a few years ago, New Jersey is experiencing a surge of tenant activity in the Internet field.

Consolidation Means More Space Requirements

In industries like pharmaceutical, telecommunications and Internet service providers, the new year is ripe for consolidation. Look for several big mergers and acquisitions in 2000 to have a big impact on the real estate market, as the new entities will have large requirements.

Older Cities are Hot

Newark, Jersey City, Hoboken, New Brunswick and Trenton are all areas that are experiencing a revitalization, and will be a dominant trend in the new year.

New Jersey Still a Top Spot For Corporate Headquarters

Few other states in the country can rival New Jersey in infrastructure, demographics and access to New York City, Philadelphia and Washington, D.C. The state will therefore continue to be a destination for corporate headquarters locations.

Private Developers Make a Comeback

While the REITs have remained on the sidelines, private developers with access to institutional and well-heeled investors have stepped up and are leading the way in acquisitions and new development projects.

The Growth of the Stock Market

With the market at all-time highs, companies are going public at record numbers, which is helping to fuel their growth plans.

With these trends in mind, look for New Jersey's commercial real estate market to continue to remain strong for several years to come.
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Article Details
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Author:Witmondt, Eric N.
Publication:Real Estate Weekly
Article Type:Brief Article
Date:Jan 26, 2000
Words:343
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