Cohen says investment firms are still exhibiting faith in industrial and that while technology-related properties are coming back on the market, and larger properties are becoming available, they are still finding eager tenants to take them. Cohen points out that the New Jersey industrial market is particularly strong, especially in Central New Jersey.
"Central survives," he explains, "by being between Philadelphia and New York City. This gives the area a particular advantage. Big box industrial by Exit 8A off the New Jersey Turnpike are still being grabbed up. I'm perking right along, and my specialty is in brownfields."
Not only are properties in Central New Jersey thriving, but also, recently the mayor's office here announced that two manufacturers and three not-for profits are planning to grow here with the help of the city's Industrial Development Agency. Baco Enterprises Inc, a manufacturer of structural steel and threaded products for bridge and highway construction; Leo International inc., a manufacturer and wholesale distributor of plumbing supplies; and the Child School, the Federation of Protestant Welfare Agencies Inc. and the Therapy and Learning Center Inc. are all planning to expand or create facilities within the five boroughs.
Cohen also explains that often deals, such as brownfields, are many months, even years, in the making, sustaining the sector. "Brownfields," he says, "are not something people expect to occupy right away. The FedEx deal in Edison was a land-lease deal in which they didn't pay rent until the site was occupy-able. There was a lot of lead time and that hasn't dropped off because of the slowdown."
Despite the dot-com fallout and reported significant layoffs in manufacturing companies across the country, Cohen says the value of industrial has not been hurt. "We haven't seen owners giving concession in industrial properties. Nor have we seen so called 'value added' properties coming on the market in a significant way.
"When things get bad one sees a lot of bottom fishing out there--looking for big discounts, capitalizing on decreased value and higher vacancies--but I haven't seen that out there now," he continues. "We talk to our friendly competition and they're busy too. Things are better than people might expect."
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