Here is a snippet of a recent article I wrote for the Mid Atlantic Real Estate Journal on July 29th. You can read the full pdf from the link below.
Is the CRE glass half-empty or half-full? Simple really, it’s both. The glass, or in this case, the market is somewhere in the middle. (I’ll quote a line from the ‘king of Queens’ Doug- Kevin James, is happy to be right in the middle. “Not too good, not too bad, right on the cutting edge of mediocre.”
Now, that is not to say we as brokers and the commercial property owners are at all pleased with this mediocre reality, but it is the current reality.
Read the full article here: Mid Atlantic Real Estate Journal
Northern New Jersey Commercial Real Estate News
Private Investor Pays $2.7M for Mahwah Flex Bldg PSI Technology acquired the 29,000-square-foot flex building from Raia Properties Corp. for $2.69 million, or about $93 per square foot. Delivered in 1983, 330 Franklin Turnpike has approximately 12,000 square feet of warehouse space and 17,000 square feet of office space. The buyer will occupy some of the office space and offer the rest for lease.
The average (mean) price of gasoline in New Jersey has risen 22.8% from one year ago. The average price per gallon in March 2010 was $2.62 versus $3.39 on Friday March 11th.
This sharp spike in gas prices, along with an approximate 13% aggregate increase in food prices will only place more downward pressure on the local and national economies. More monies spent on food & fuel means less discretionary and disposable income to spend on other goods & services.
Rest assured that Retail Sales will feel the pinch in the coming months.
Add to the mix, a depressed housing market that continues to decline in price and increase in inventories which will only all add up to a double-dip recession. In fact, we are already in the early stages of a double-dip recession.
What does it mean for the average working class family? Well, all of the relevant economic indicators point to a declining economy that is worsening. (forget the stock market- that is an unreliable indicator of any real micro economic conditions, especially household/consumer levels)
U.S. unemployment/underemployment stands at nearly 22%. New Jersey unemployment is really over 12%, not the reported 9% reported by the Labor and Workforce department. House prices continue to fall and inventory continues to rise. 24% of all mortgage holders are in default of their loans and 23% of mortgage holders are underwater (having negative equity).