Repositioning Real Estate in New Jersey
Bisnow held its New Jersey Repositioning Summit in Jersey City in April. An esteemed panel of leading New Jersey real estate professionals including developers, owner operators, investors, property managers, architects, attorneys and lenders discussed key topics such as the location of value in the current real estate market in the Garden State.
Space – The First Frontier
Most panelists agreed that industrial properties are the most in-demand of all the asset classes. Tenant demand is driving this need to reposition industrial properties in central and northern New Jersey. Real estate professionals in New Jersey are being forced to identify the best use of a building, as many buildings are older and need to be repositioned for 21st century needs. Do you renovate a building? Do you completely demolish and rebuild from ground up? The tenant pays rent by square foot; however, the tenant charges their customers by space, which could be by the pallet, rack, and so forth. Therefore, finding new and innovative ways of creating space can add significant value to a building.
Work, Live, Play
Multifamily, office, and retail assets are all going through a transformation process. The concept of “work, live, play” is bridging the gap between these asset classes. More new construction consists of properties that include office, retail, and multifamily units. People want to live closer to where they work and want to be able to shop locally. The design of these suburban properties has tried to combine the best of both worlds: an urban feel and design while incorporating the natural landscapes of the rural area.
Over the next several years, real estate in New Jersey will be impacted by parking and the way we drive and commute. Uber and driverless cars and the need for parking will impact the way real estate developers design their properties.
Thankfully, forums like the New Jersey Repositioning Summit help create awareness for these and the many other challenges facing the real estate sector.