Good times expected for New Jersey in new year.
Lack of New Development
With very little new spec space being created, vacancy rates will continue to decline.
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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|Author:||Witmondt, Eric N.|
|Publication:||Real Estate Weekly|
|Article Type:||Brief Article|
|Date:||Jan 26, 2000|
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