■ Business Forecast
■ Business Forecast
ence ? Why will they care ? Is there a reason to value your brand ? Is your message relevant , useful , meaningful and clear ? Is your point thought-provoking ? Does it inspire a response ? Those who take the time to clearly define what their business / product / service means to their audience , and develop and implement a unique , personalized strategic plan will experience greater engagement , satisfaction , and success .
R & J Strategic Communications Scott Marioni President
The biggest single factor that will shape 2025 for R & J and our clients is the outcome of the presidential election . Not every presidential election is particularly consequential , but this one certainly is . The candidates obviously have very different positions on most topics , from fiscal policy to regulation to environmental and social issues . As such , the outcome will have profound and lasting effects on the opportunities available to businesses in every industry and the resources allocated to help address a broad range of societal challenges such as mental health , addiction and social determinants of health .
REAL ESTATE AND DEVELOPMENT
Atkins Companies Bob Atkins Principal
With the Federal Reserve ’ s rate cut in September and several additional cuts anticipated for 2025 , we ’ re expecting to see a steady increase in commercial real estate deal flow in the year ahead . Beyond the broader market , our company is deeply rooted in the healthcare real estate sector and partners closely with many regional healthcare networks . A more favorable rate environment should also help bolster their strategic capital-intensive expansion plans that will stimulate stronger demand for medical office space across the region .
Levin Management Corporation Matthew K . Harding Chief Executive Officer
Retail properties in densely populated , infill markets like New Jersey are seeing more redevelopment than regions with land available to support new construction . Well-capitalized landlords , who have service providers with the expertise to navigate what can be a complicated approval process and the construction management capabilities to execute a redesign / rebuild on any scale , are taking advantage of the industry ’ s momentum . They are transforming legacy properties into next-generation spaces to attract best-in-class , growing retail brands – and it ’ s working . This is a great time in open-air retail real estate and exciting to see existing shopping centers redeveloped and improved .
NAI James E . Hanson William C . Hanson , SIOR President
The Fed ’ s recent rate cut has brought optimism to New Jersey ’ s commercial real estate market , but uncertainty will remain a key theme in 2025 . The office market ’ s continued challenges have created a difficult capital markets environment for financial institutions and investors alike . However , the multifamily and industrial sectors remain strong , and redeveloping the state ’ s surplus of obsolete office space could present new opportunities for both . As 2025 progresses , unresolved geopolitical and economic risks will stay top of mind , but
“ The office market ’ s continued challenges have created a difficult capital markets environment for financial institutions and investors alike ,” says William C . Hanson of NAI James E . Hanson . improving capital market conditions and the promise of untapped development and redevelopment opportunities should gradually attract investors back to the market .
NAIOP New Jersey Dan Kennedy Chief Executive Officer
Access to capital and shifting environmental regulations will continue to be the key drivers impacting commercial real estate development in New Jersey . Interest rates remain high , making conventional loans a costly option for financing new projects . State legislators and various agencies continue to consider high-profile recommendations on land use and the decarbonization of buildings – and even the smallest change in regulations could have a profound effect . Coupled with the unknowns surrounding the 2025 gubernatorial election and renewal of expiring federal tax codes that are critical for CRE , to say our industry is facing a great deal of uncertainty is an understatement .
Prism Capital Partners Eugene Diaz Principal Partner
‘ Geography is Destiny ,’ and New Jersey reinforces this mantra . Housing continues to be the lodestar of asset classes and should continue to lead going forward . This is due , in large part , to over a decade of systemic under-building , which has only reinforced the supply and demand imbalance . Given our home rule politics and constant NIMBYism , it will be nearly impossible to catch up anytime soon . Our best hope for advancement will be found in municipalities that can be housing- and business-friendly , with zoning flexibility to create the balanced live / work / play downtowns and suburban mixeduse environments necessary to nurture growth .
Terrie O ’ Connor Realtors Terrie O ’ Connor Broker President After more than two years of double digit declines , the real estate market may have reached its bottom , according to economists , and is on a road to recovery . The Fed has cut rates , resulting in mortgage interest rate drops . The impact nationally ? Increasing housing inventory and home price reductions , especially in the states that had experienced a COVID “ work from anywhere ” migration . Locally , inventory remains constricted with an unquenchable buyer demand that should see some softening in 2025 as mortgage interest rates drop into the 5 % range , but true recovery will only come with increased home building and development . Simply put , we need more homes .
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