■ Construction and Real Estate
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James Hughes ( Retired Dean ) Edward J . Bloustein School of Planning and Public Policy , Rutgers University
The giant warehouses or “ fulfillment centers ,” as they have become known , are commonly located by the major highways , especially along the New Jersey Turnpike Exits 8A and 7A . But Hughes says “ last mile ” distribution centers that are 100,000 square feet are cropping up across the state , too . Sometimes they are repurposed big box stores that once anchored regional shopping malls .
Towns appreciate the conversions because they are seeing tax dollars again instead of vacant strips . Both Hughes and Hanson say , however , that there has been push back against some of the warehouses and distribution centers from neighbors , who are opposed to trucks on local streets . There was an attempt to draft legislation to restrict warehouses but it failed to progress in Trenton .
New Jersey ’ s location “ smack in the middle ” of Washington , D . C . and Boston makes it a prime location for distribution centers , Hanson notes . He says “ there ’ s not enough space to keep up with the demand ” for warehouses .
In contrast to the apparent trajectory of the warehouse market , the future of New Jersey ’ s office parks is unclear . “ The office arena is up in the air ,” Hanson says , because in the wake of the pandemic , employers are uncertain how to utilize their space or how much space they need . Many companies have not brought their full staffs back into the office since February and March in 2020 when everyone was sent home to combat spreading the deadly COVID‐19 virus , he notes .
Gualberto Medina , an executive vice president at CBRE Group Inc ., the world ’ s largest commercial real estate and investment firm , also raised concerns about office space . “ The workforce is expressing a strong preference for flexible work arrangements . If real estate
CBRE Group Inc . Executive Vice President Gualberto Medina
decision-makers wish to bring workers back to the office , they will need to focus on planning for ‘ the new normal ’— most likely hybrid workplaces that can bring people and teams together safely . This shift has implications for workplace occupancy , design , planning and equity .”
CBRE research also shows the average age of a New Jersey office building is 36 years and the availability rates stand at close to 25 percent . Medina , who works out of his company ’ s Saddle Brook headquarters , says only 17 percent of the total office supply has been built since 2000 . He said “ as more obsolete product is repositioned or removed from the office inventory , new development will be required to replace antiquated infrastructure . Recently , multiple , large-sized occupiers have been drawn to new products furthering the flight to quality .”
Architect Napolitano says new construction is being hampered by stringent new stormwater regulations being imposed by the
WFM Project and Construction Inc . CEO Lou Weiss
New Jersey Department of Environmental Protection . These regulations , which affect how an owner or developer must manage storm water on a property , are driving up costs and slowing construction .
Lou Weiss , CEO of WFM Project and Construction Inc . of Hackensack , explains that the pandemic continues to cause labor and material shortages that are driving up costs . He fears the industry will be facing greater costs for years to come .
Other trends in the construction industry include new materials to help reduce weight and costs ; modular construction and prefabrication will see expanded use ; technology will be used such as 3D printing , collaboration software , artificial intelligence and building information modeling ; drones and robots will be used to monitor projects and lower labor costs ; and wireless wearables will assist in tracking workers and to increase efficiencies .
Russo Development and Onyx Equities have purchased 62 acres at Route 10 and Ridgedale Avenues from Novartis Corporation with plans to eliminate 900,000 square feet of vacant office buildings to make way for 826,800 square feet of modern industrial space .
Photo : Russo Development
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