■ Real Estate
■ Real Estate
Over the past five years, as the office market has reset, the industrial sector has experienced both record highs and subsequent cooling. The market’ s peak in 2021 – 2022 spurred a wave of new construction, much of which was delivered in 2024 and will continue to come online in 2025. This influx of supply has driven up vacancy rates and put downward pressure on asking rents. However, as the construction pipeline slows, we may see the supply-demand balance begin to shift in the latter half of 2025.
As the year progresses, short-term challenges will persist, but a clearer economic picture should
“ Those who prepare now may be wellpositioned to take advantage of a market upswing,” says Janen Ardia of RE / MAX Heritage Properties, Flanders.
Photo: Getty Images / iStockphoto / baona emerge, allowing investors, landlords, and tenants to move forward with greater confidence.
RE / MAX Heritage Properties, Flanders Janen Ardia Broker of Record- Manager Owner
The real estate market is shifting, with inventory changes, economic uncertainty, and interest rate trends shaping buying and investment decisions. Understanding these factors can help businesses and investors make the most of emerging opportunities.
One major influence is projected inventory. In many areas, limited supply has kept prices high despite slower sales. However, as new developments hit the market and more sellers list their properties, prices may stabilize or even decrease. This creates opportunities for buyers, developers, and businesses looking for commercial space at more competitive rates.
Economic uncertainty is another key factor. Concerns over inflation and a possible recession have made some buyers and businesses cautious. In times of uncertainty, major purchases and expansions tend to slow, impacting overall real estate activity.
Mortgage rates, while higher than in recent years, remain affordable by historical standards. Many financial experts anticipate potential rate adjustments that could make borrowing even more accessible. Lower financing costs could drive renewed demand, fuel development, and open new investment opportunities in both residential and commercial real estate. Those who prepare now may be well-positioned to take advantage of a market upswing. As the market continues to evolve, timing and adaptability will be essential for making smart real estate moves in 2025 and beyond.
Terrie O’ Connor Realtors Sarah M. Drennan President
Inventory continues to be constrained in northern New Jersey, with only two months’ supply of inventory in Bergen County. The lock-in effect, where sellers are unwilling to give up 3 % mortgage interest rates, combined with an unquenchable buyer demand, limited new construction for purchase and high interest rates, will further challenge the residential real estate market in 2025. Interest rates aren’ t deterring buyers, but many are facing affordability constraints as low inventory continues to drive up home prices. Dramatic market improvement will require increased new construction for purchase, lower interest rates and increased migration out of the Garden State. with co-host Mary Gamba