The role of commercial real estate brokers has changed from performing duties as a transactional type of service provider to more of a business advisor. We are now looking at how to prepare for excess space, renegotiating rental terms, viewing the market and reporting back to clients more frequently so not to miss an early trend. So far the trend has been to buckle-up and use your space as efficiently as possible and stay put unless there is a great deal and there are.
Central New Jersey is a hotbed of activity as it relates to distribution of consumer products.
1/3 of the USA lives within 5 hrs. of NY City, so we need places to store all that product that we love to buy.Whether it be soap and paper towels, olive oil or clothes.,the "big boxes" that line the NJ Turnpike are the marquis names of consumer staples alike. The real whispers out there lately are ,"how low you think they'll go". I showed property last week and the customer within 30 seconds of inspecting a mid-size warehouse in Central NJ said, "This will work but I am shopping the cheapest deal" , so its off to the races to see which of the owners wants to fill the space and discount the rent to do it.
Got to go, the market forces are at work and when the dust settles the well-located properties will rent and the other ones not may be sold or leased CHEAP.
Chris Galiano, SIOR
NAI DiLeoBram & Co,
cgaliano@naidileobram.com
732-985-3000
Tuesday, July 28, 2009
Sunday, July 12, 2009
July 10,2009 More of The Same
Looks like July will be a repeat of June, the way this is starting out. Deals are getting done at the 10-40,000 sf mark at a somewhat decent pace all be it at least at 50% volume levels of 2008.
Rates are are still lowering as we see CPI in a NEGATIVE situation for the northeast. Much like the hotels throwing in a free massage with their room but maintaining the room rate. Owners are throwing in free rent , more of it and maintaining the face rate of late 1st quarter 2009.
THE WEIRD PART IS: You are more likely to SELL a bldg at current market for sizes 25-50,000 sf then lease it. What economy? Now there won't be $100 psf on the contract but maybe a surprising number despite the market conditions. What about AIG's bldg in NYC at $100 psf for 1,000,000 sf , NOW that's deflation! That bargain is being SCOOPED up by the foreign investors quicker they can write their check.
Many, many I mean many strip centers will soon feel the wrath of the refi illness. If you have problems on the refi , then we'll soon see supply hit the market in a big way, at decent prices..
Stay tuned for more Summer News...
Chris Galiano, SIOR
Managing Director
NAI DiLeo-Bram & Co.
cgaliano@naidileobram.com
732-985-3000
Rates are are still lowering as we see CPI in a NEGATIVE situation for the northeast. Much like the hotels throwing in a free massage with their room but maintaining the room rate. Owners are throwing in free rent , more of it and maintaining the face rate of late 1st quarter 2009.
THE WEIRD PART IS: You are more likely to SELL a bldg at current market for sizes 25-50,000 sf then lease it. What economy? Now there won't be $100 psf on the contract but maybe a surprising number despite the market conditions. What about AIG's bldg in NYC at $100 psf for 1,000,000 sf , NOW that's deflation! That bargain is being SCOOPED up by the foreign investors quicker they can write their check.
Many, many I mean many strip centers will soon feel the wrath of the refi illness. If you have problems on the refi , then we'll soon see supply hit the market in a big way, at decent prices..
Stay tuned for more Summer News...
Chris Galiano, SIOR
Managing Director
NAI DiLeo-Bram & Co.
cgaliano@naidileobram.com
732-985-3000
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