Search
 

Slowly in 2010, Recovery to Begin in Early 2011

FAIRFIELD, NJ-Northern and Central New Jersey transaction volume to will stay down in 2010 and vacancy will likely increase, according to a Grubb & Ellis report.

By Alyson Grala | Updated on January 12, 2010

FAIRFIELD, NJ-Grubb & Ellis Co. has released its 2010 real estate forecast, which indicates that 2010 commercial real estate fundamentals will decline more slowly than in 2009, with most property types reaching bottom near the end of the year and beginning a slow recovery starting in 2011.

“The national economy has begun a slow and cautious recovery, but the labor market, which often lags the broader economy, will turn around only gradually with sustained improvement unlikely before the second half of 2010,” says Bob Bach, senior vice president and chief economist of Grubb & Ellis. “Because commercial real estate lags the labor market, it still has a ways to go before reaching its own low point. The good news is that the freefall we saw in 2009 is over and the future is more certain, giving owners and users of real estate the confidence to begin making decisions again.”

The Northern and Central New Jersey markets are expected to follow national trends, with all property types experiencing further increases in vacancy with downward pressure on asking rental rates. However, with the region’s proximity to New York City and the fact that virtually no new construction deliveries are on the horizon, long-term prospects for New Jersey are good.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.