Parsippany, N.J., – A strong Q1 and Q2 for Resource Realty of Northern New Jersey (RRNNJ) and an agile approach to finalizing 41 leasing and sales transactions has resulted in over 866,000 SF in closed deals at the midyear mark for the Parsippany, N.J.-based commercial real estate brokerage firm. RRNNJ is active throughout New Jersey as well as New York State and locally, regionally and nationally thanks to membership in the Society of Industrial and Office Realtors (SIOR) global network.
“Investor and user demand are driving optimism for industrial, retail and medical-office properties located within Northern New Jersey,” said Principal Greg Sabato. “Strong employment and consumer spending are what drive real estate investment strategies and given the current climate, will continue to drive flex-light industrial, neighborhood retail and medical-office-building commercial real estate investing for the foreseeable future.”
Favored CRE Assets include Industrial, Retail, Medical Office
Thanks to relative stability and a level of economic resiliency that has carried over into the first half of 2024, there is sustained demand among a diverse user and investor pool craving these assets. Among these are institutional entities, private equity, family offices and high net-worth individuals as well as locally and regionally based private distribution companies/materials and goods manufacturers (industrial), lifestyle service providers (retail) and health/wellness entities, such as physician practices and affiliated hospital services groups (medical office).
During the first half of the year, RRNNJ’s hubs of concentrated activity included the Essex and Morris county submarkets, where the firm’s brokerage professionals recorded a total of 28 transactions. Across the state’s northernmost counties of Bergen and Passaic, RRNNJ also added an additional nine transactions. Of these transactions, three sales involved the disposition of a retail building in northwestern Essex County; the acquisition of a two-story office building in southern Passaic County; and the trade of a fully leased medical-office property along Route 10 in Roxbury Township.
Rounding out RRNNJ’s Garden State activity were lease agreements in Somerset (3,588 SF office space) and Middlesex (3,350 SF retail space) counties as well as 82,000+ SF in industrial leasing within the Northeast’s newest emerging industrial/warehouse/logistics corridor – the Lehigh Valley/Western New Jersey MSA.
According to the brokerage professionals at RRNNJ, one trend influencing current investor and tenant activity is the higher interest-rate environment. “During the past 18-24 months, rising interest rates have set the stage for users to compete against institutional investors in acquiring properties for self-occupancy and as a means to control their own costs,” explained Principal and Founder Tom Consiglio, a 30+ year industry veteran. “When there is an interest-rate reversal, these owner/users will be able to refinance at a lower rate while continuing to maintain their in-place operations in a cost-effective, efficient manner.”
Lower New York State Emerges as Industrial Hub
Similar trends prevail in the Lower New York State Metro. Since RRNNJ expanded its brokerage services into the region, the firm’s market specialists have been especially active across Orange and Rockland counties. In fact, RRNNJ recently arranged the lease-up of a newly constructed Hudson Valley warehouse/logistics property nestled near two of the region’s most-traveled interstates, one hour from New York City and Northern New Jersey – two of the most important markets along the Northeast Corridor.
“Post-pandemic, this once agriculturally focused region has undergone an influx of industrial development that is transforming the area into a center of commerce for large distribution centers for tenants like Tesla, Amazon and Medline,” said Consiglio, who noted within one particular corridor in Orange County alone there are now more than 10 new warehouses and distribution centers, with a number of developments being proposed. “This is a market on the rise, with investors, developers and users enthusiastically seeking existing and ground-up opportunities.”
Based in Morris County, N.J., Resource Realty of Northern New Jersey is a world-class provider of commercial real estate solutions delivered with the personalized attention and autonomy of a boutique firm. Custom services include sales and leasing, landlord and tenant representation, corporate advisory and consulting, and investment property acquisitions.