Big Deals for North Jersey Commercial Real Estate
A rise in big North Jersey commercial real estate deals has increased optimism for developers.
Strong demand for industrial and multifamily properties has seen real estate deals top those for the same period in 2012 by nearly $100 million.
Reaching $450 million in the first two quarters, compared to $356.4 million last year, the number of unique deals also rose from 10 to 14, according to a report by Cushman & Wakefield.
The two highest-grossing sales this year involved industrial and multifamily businesses - two of the strongest commercial real estate sectors. Prospect Towers, in Hackensack, was sold for $99.2 million. In June, the Mohawk Distribution Centre, a huge 616,993 square foot facility, sold for $81 million, accord to CoStar.
North Jersey's marked proximity to New York City, as well as the area's dense population, makes it a prime location for warehouse and distribution centres, increasing their value to investors.
While the North Jersey industrial and multifamily categories are experiencing continued growth, its office market is growing at a slower rate. The state's slow economic recover has challenged growth in the sector, though the renovation of suburban business parks promises to increase the rate. Retail is strong, with trends well-represented in the larger deals so far this year.