NJ Market Update February 2024

NEW JERSEY MARKET UPDATE

FEBRUARY 2024

Welcome to Berkadia’s ‘NJ Market Update’ newsletter, your go-to source for the latest developments, trends, and insights in the dynamic world of commercial real estate. In this newsletter, we aim to provide you with a comprehensive overview of the most significant happenings in the industry, keeping you well-informed and up to date.

ANCHOR Program Distributes Historic Property Tax Relief to More Than 1.8 Million New Jerseyans

Insider NJ, January 29, 2024

The ANCHOR program continues to provide direct tax relief with financial assistance that helps ease the burden of property taxes,” said Senate President Nick Scutari. “We are providing the highest level of property tax relief in history for homeowners and renters throughout the state. The success of the program reflects our ongoing commitment to affordability for the residents of New Jersey.

New Jersey Tightens Rules for Residential Building Inspections & Maintenance: What You Need to Know

Traded, January 30, 2024

New Jersey has taken a decisive stand in safeguarding the lives of its residents. In a proactive move, Governor Phil Murphy has recently approved legislation aimed at reinforcing the inspection, maintenance, and reserve fund regulations for residential buildings across the state. This progressive initiative comes more than two years after a tragic building collapse in Florida claimed the lives of 98 individuals, serving as a stark reminder of the importance of preemptive measures

AvalonBay Sues Hoboken Over Rent Control Decision

The Real Deal, February 5, 2024

AvalonBay is taking Hoboken to task after being stripped of its rent control exemption last year. The firm is suing the New Jersey city and its rent leveling board following the loss of the exemption and subsequent loss of an appeal in the fall, Hudson County View reported. AvalonBay is seeking to nullify the board’s decision over the complex at 800 Madison Street.

Woodbridge to Weigh Metropark Redevelopment on Wednesday

TAPinto, December 11, 2023

Redevelopment, as proposed, would make Metropark – already New Jersey’s second-busiest commuter station behind Newark –even busier. Officials also say it would turn Metropark into an attractive, modern and livable transit-oriented development.

In Huge Win for State, FIFA Selects MetLife to Host 2026 World Cup final

ROINJ, February 4, 2024

Let’s be clear, being selected Sunday to host the 2026 World Cup final to be played July 19 will have a huge impact on the New Jersey economy during the lead-up to the world’s most watched event — and during the expected four- to six-week tournament itself. MetLife Stadium will host eight games. There will be watch parties and celebrations held in numerous cities, and the state will certainly be picked to play host to at least one of the teams in the tournament.

Downtown Demand: Developer Aims to Bring Highly Coveted, High-end Office Space to Montclair Business District

Real Estate NJ, February 8, 2024

The Gensler-designed project would redevelop the site of a vacant six-story warehouse, retail space and a dirt parking lot. Plans call for a lobby and new retail storefronts along Bloomfield Avenue, along with three floors of office space and outdoor terraces with a tiered, stepped-back design. Placek said that’s meant to not overwhelm the nearby landscape of two- and three-story structures, “so the impression of the building from that street-level pedestrian experience is significantly less intense than what the actual building mass is or is perceived to be.

Morris County’s highest incomes ranked town-by-town

NJ.com, February 20, 2024

Morris County ranks third among New Jersey’s 21 counties for highest household income at $131,795, according to latest U.S. Census data. The Census recently released town-by-town income data showing Chatham Borough and Mountain Lakes tied for the highest median in the county and the state at more than $250,000. The Census stops providing exact amounts after $250,000.

Plan to Make George Street in New Brunswick into Permanent Pedestrian Mall is Picking Up

ROINJ, January 25, 2024

Earlier this month, New Brunswick Mayor Jim Cahill and the city council reviewed an impact study and several design options to make the three-block area of George Street between Bayard and Albany streets a permanent pedestrian plaza. The plans, prepared by Hasbrouck Heights-based DMR Architects, include an option to convert George Street to an outdoor area that features year-round activation, including outdoor dining, performance spaces and winter festivals — perhaps even a skating rink.

FEBRUARY FEATURE

TOP 30 MOST COMPETITIVE RENTAL MARKETS IN 2023

Of the top 10 most competitive rental markets, four were in the Midwest, boasting an RCI score of more than 100. The lower cost of living, new job opportunities in the realm of reshoring and other new investments made the Midwest one of the most competitive regions in 2023.

Milwaukee remained the top Midwestern market, ranking third overall with an RCI score of 113. Overall occupancy stood at 95.8 percent, while a total of 2.9 percent of rentals were in newly built communities. On average, apartments stood vacant for 33 days, with 14 prospective renters competing per unit.

Grand Rapids, Mich., boasted an RCI score of 109, with the market maintaining its position as an affordable alternative to Chicago, Detroit and Indianapolis. However, suburban Chicago also remained a top choice for renters.

New Jersey makes the top ten list three times for most competitive rental markets in the county. North Jersey coming in at number 2, Suburban Philly (includes Southwestern NJ) comes in at 8, and Central Jersey coming in at 10. This is why investors continue to chase apartments in our market. Even with new supply coming on we do not have enough units to satisfy the housing needs.

Source: https://www.multihousingnews.com/where-are-the-most-competitive-rental-markets/

Berkadia New Jersey Investment Sales, led by Nat Gambuzza, provides a depth of advisory and transaction services for income generating properties that is unparalleled in the industry. Their clients include private investors, partnerships, lenders and institutions of various net worth. The team has specialized expertise and excels in the most complex transactions, including portfolio sales, distressed property sales, note sales and time-sensitive 1031 tax exchange transactions. Prior to joining Berkadia in 2022, the team worked at two otherwise national real estate investment services firms

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