Perth Amboy, Harrison, Jersey City, Englewood and River Edge can all expect to see their CBDs transformed in the near future, thanks to healthy market conditions in the first half of the decade when many regional and national developers embarked upon their plans to build in the Garden State.

During the height of the commercial real estate boom in the first half of the decade, New Jersey's retail sales figures were fueled by homeowners who refinanced or renovated their existing homes, or purchased new ones. Since the single-family housing market has cooled, the retail investment-sales market has slowed down, but not softened. However, over the long term the market is expected to stabilize. Demand will always remain healthy in New Jersey because of its proximity to New York City's extremely robust economy, which penetrates virtually every region of the Garden State.

In Manhattan, professional and business services employers were expected to create jobs at a rate faster than overall employment growth through year-end 2007. Approximately 11,000 new positions were projected in the sector, a 2.3% increase and a gain from 9,400 jobs in 2006. A number of people who work in Midtown Manhattan live across the Hudson River in New Jersey, spending their retail dollars in their home state.Since many of New Jersey's mixed-use retail projects were announced before capital markets crunch, developers have been forced to rethink their construction plans. Owners are taking a second look at their financials--and blueprints--to ensure their project contains the right mix of residential, retail and hotel units. They are pouring over data to make sure that the retail component still fills the intended niche or best serves the community in which it is located. Out of necessity, owners have become more cautious in an effort to capture the attention of today's more discerning consumer. For instance, developers are analyzing whether they should move forward with market-rate rentals instead of condominium or townhouse-style developments. Some projects currently under construction were initially approved as condos, but have received variances by city planning commissions to permit the development of fair-market rentals. This development trend is expected to continue in 2008.