Real estate predictions: Experts tell ROI-NJ their thoughts on 2019

Has multifamily finally hit its peak? Can industrial continue its big push, buoyed by the ports? Will Newark and Jersey City continue to lead the way in urban development? What’s the feeling on retail? And how will Gov. Phil Murphy’s goal of an innovative economy impact all of this?

Real estate 2019: ROI-NJ ask some experts in the field to give us their predictions:

Stephen Cassidy
Denholtz Associates

With tremendous amounts of capital sitting on the sidelines and limited easily available investment opportunities, investors are going to increasingly turn to tools like real estate crowdfunding to find deals that fit their investment goals accordingly. As an early adopter of real estate crowdfunding, Denholtz Associates anticipates an increased interest from investors eager to diversify their portfolio through alternative investments in real estate.

Frank Giantomasi
Chiesa Shahinian & Giantomasi P.C.

2019 can be transformative for real estate in New Jersey. Residential continues to grow at a breakneck pace, and the industrial sector remains robust — buoyed by strong activity in the ports. Retail, however, is still an unknown quantity, and the imminent arrival of Triple Five’s American Dream will serve as a significant bellwether for the state’s appetite for retail.

William C. Hanson
NAI James E. Hanson

2019 in the commercial real estate brokerage community will begin much like 2018 ended, with industrial leading the way throughout northern New Jersey. With limited supply and strong demand, the region’s industrial market will continue to shatter pricing records and force developers to look to the west, south and north of the typical industrial markets for profitable development opportunities.

Sonny Jumani
President and managing member

I expect the demand for self-storage, apartments, service retail and industrial properties to continue to grow in 2019. However, it’s important to note that redevelopment is where most of the industry’s value is created, resulting in a healthy seller’s market for stabilized assets. Expect a tremendous amount of capital on equity and debt to be available for good sponsors.

Michael Legacki
Senior acquisitions manager
The Hampshire Cos.

We anticipate the self-storage marketplace to continue to become more competitive over the course of 2019. With increased competition, developers will need to work harder to find quality opportunities in underserved markets. Firms that have a strong track record of delivering best-in-class product in underserved markets will be well-positioned for continued success in this market throughout 2019.

Chris Paladino
New Brunswick Development Corp.

2019 will be transformative, as New Brunswick pivots toward the innovation economy. We anticipate going in the ground with over 600,000 square feet, representing investment of more than $500 million of laboratory, vivarium, clinical, incubator, accelerator and office space within two blocks of the New Brunswick Train Station. Phase I of the Innovation and Technology Hub and expansion of the Rutgers Cancer Institute of New Jersey will be the platform for an innovation ecosystem where creative collisions will drive the regions’ new economy.

Lloyd Rosenberg
CEO and president
DMR Architects

Public-private partnerships and design-build programs will become more prevalent in 2018 and establish themselves as common, rather than exceptions, in the development realm, especially when it comes to public buildings. In design-build scenarios, the motivation to build efficiently is shifted to the construction team. Public-private partnerships can unlock the value of a property by allowing some commercialization of public property, offsetting costs and generating opportunities to modernize.

Ryan Sanzari
Chief operating officer
Alfred Sanzari Enterprises

In an oversupplied yet still competitive market, the tenant experience will play an even larger role in 2019 as work cultures continue to shift and tenants look to attract, retain and engage their employees. Inspired by this, at Alfred Sanzari Enterprises, we’re introducing several interactive tenant events, ranging from fitness classes to food trucks to unique onsite shopping opportunities.

Michael Sommer
Executive vice president of development
Edison Properties

Newark has been firing on all cylinders for the past few years, and we expect 2019 to continue on a similar upward trajectory.  Newark’s office market continues to rise, and the arrival of Mars Wrigley Confectionery and other first-class tenants to our Ironside Newark project will provide it with even more momentum. In 2019, the city is poised to become a true 24/7 destination by adding luxury multifamily units and destination retail to its already vibrant downtown.

Deb Tantleff
Founding principal
Tantum Real Estate

As a result of affordable housing settlements, 2019 will bring a tremendous amount of multifamily housing inventory into the New Jersey marketplace that merits cautious realism with respect to rent projections and leasing velocity. The market will grapple with balancing the delivery of product with a still robust investor appetite challenged by unsustainable land prices and rising interest rates.

Ted Zangari
Sills Cummis & Gross P.C.

The Grow New Jersey incentive program, currently set to expire next July, will be saved by legislative leaders during the spring budget process, but not without significant changes demanded by the Murphy administration to target new job growth, technology companies, small businesses and urban centers.

Lori Zuck
Managing director, Industrial Group

As we approach 2019, the robust industrial market in New Jersey is showing no sign of subsiding. The continued rise of e-commerce, coupled with surging manufacturing and the growth of the food industry, has boosted the state’s position for last-mile delivery and distribution centers. New Jersey’s extensive rail, road and port infrastructure will provide the kind of support needed for continued extensive industrial growth.