NJ/NY will get a great lift from the BILL!

With bldgs. having debt coming due in 2009, the big question is "where are the banks on the idea of rolling over the debt?" Well, thanks to the TARP and other things, we will see a lowering of interest rates quoted on your garden variety commercial loans. The reason being, in order to bring about major change in the economy, the thousands of loans Must roll in order for stability in the banking system to take affect. The boys at treasury will be watching with a keen eye.

What is really happening in retail is: Weekends are jammed at the malls and on the weekdays they are dead. Same with Hotels in Vegas, jammed for the weekend and cancellations for weekday conferences happening at an alarming rate.

Rail served bldgs. will be back in play in the second half of 2009, as energy prices rise again and the flow of commerce gets transferred to the mighty rail lines which growing very nicely until September 2008..

Office space in and around the rail stops will continue to see better occupancy rates higher than the suburban areas.

New Jersey should receive significant money from the US bailout and NY state will be bailed out even more so , good news for highway and bridge builders.

Growing retailers are: 2nd hand stores, dollar stores, grocery chains, car washes, dental offices(yes they do look at strip malls).

Chris Galiano, SIOR
Managing Director
NAI DiLeo-Bram & Co.
Piscataway, NJ

cgaliano@naidileobram.com

NJ Industrial Real Estate Hanging ON!

With whispers of up to a year's free rent on a select building or two, the modern solid newer warehouses in Central NJ are mostly occupied and rent producing at good rates. The problems in the market occur in the secondary locations in which the vacancy rises in periods we are going through. There just aren't as any companies looking for space. The sales market is still waiting for the spring thaw and looks like we will have one, it's just a matter of what month this year. Yes, in 2009, there will be a slight rise in the back half of the year in sales than the front half. All most people are waiting for is the treasury dept. to decide what rules we are going to play by this year and then we can apply it to the valuing of real estate asset classes and the debt markets can begin to trade again.

All that said enjoy the Valentines/ Presidents Day LONG weekend, its just what the Dr. ordered as we await the passage of the bill of a lifetime. Enjoy it!
Chris Galiano, SIOR
Managing Director
NAI DiLeo-Bram & Co.
Piscataway, NJ
cgaliano@naidileobram.com