Holland says the strength of the Bergen and Hudson markets is based upon the area’s workforce and the proximity to New York City. “People making higher salaries pay higher rents,” he says, noting that landlord concessions are slowly coming off the table as the demand for rentals continues, especially with first-timers choosing to rent instead of buy. “Occupancies are higher and landlords are having an easier time raising rents. A lot of the New Jersey markets where the markets are 97% to 98% occupied are no longer offering concessions.”

Baxter, who worked on the recent Bergen and Hudson deals, says Hudson specifically is a “very suppressed” market with strict rent control. “Upon vacancy, the new tenant has much higher rent and it’s rare to get a building today that was sold a couple years ago with a higher bottom line,” Baxter says, explaining that Bergen, on the flipside, is much tighter. “It is a little different and more desirable because they are always rented. It is not the same situation where the bottom line goes quickly, but there are very nice buildings in very nice areas and they are always full.”

And outside the Northern market, the Central and Philadelphia-submarket is also heating up. Kislak recently completed the sale of the 63-unit landmark Grand Court Villas in Trenton for $4.85 million and closed a $27.3 million cash deal for Empirian Luxury Towers in Philadelphia, which is comprised of two 569-unit high-rise apartment buildings with 13 commercial spaces.

Holland also just arranged the sale of a 174-unit building in Bucks County, PA for $9 million and Kislak also sold a 77-unit building in Bucks County for $4.3 million. And as the Tri-State region continues to strengthen, he is cautiously optimistic going forward. “The market is incredibly strong, but the difficulty is getting product available,” Holland says.