Woodbridge, NJ [October 14, 2024] – While the recent interest-rate cut points to future signs of easing within commercial real estate, retail and industrial properties across Northern and Central New Jersey demonstrated resilience in the first half of 2024, according to NAI DiLeo-Bram & Co.’s (NAIDB) latest Capital Markets Snapshot.
The analysis, which focused on Morris, Essex, Union, Middlesex, Somerset, Mercer and Hunterdon counties, revealed retail transactions, which had slowed last year, rebounded in 2024 and now account for 37 percent of total sales volume – approximately $272MM in the first half of the year. Retail transactions now represent the second-largest share of all trades, just behind industrial and ahead of office.
“The recent reduction of interest rates will help stimulate transaction volume,” said NAIDB COO David Simon. “Institutional and private investors remain interested in acquiring assets in New Jersey based on its location, infrastructure and economic diversity.”
NAIDB found that the average price per square foot for retail space sold in the first half of the year ($265) was approximately 10 percent higher than in the second half of 2023 ($239). Conversely, prices remain significantly higher than the pre-pandemic average of $122 per square foot.
Similarly, NAIDB observed a comparable trend for industrial properties, which continue to command elevated pricing compared to pre-pandemic levels. Industrial properties that traded in the first half of 2024 averaged $213 per square foot – a benchmark that is substantially higher than pre-pandemic levels. In terms of geography, industrial sales volume was highest in Middlesex County during the first half of the year, with over $118MM in transactions.
Based in Woodbridge, N.J., NAIDB is a member of NAI Global, a leading global commercial real estate advisor with over 325 offices and 5,800 professionals. NAI Global completes more than $20B in worldwide commercial real estate transactions annually. Leveraging the powerful support of the NAI Global platform, NAIDB offers a full suite of commercial real estate services, combining the personalized service and local knowledge of a boutique firm with the resources of a global company.
# # #