4/1/21 Northern New Jersey Mastermind Group Meeting

Key Take Aways from Northern New Jersey’s April, 2021 Meeting

• NJ PILOT programs are driving a lot of inner-city development. State regulations require PILOTs to use prevailing wage labor which undermines the idea of PILOTs.
• New Stormwater Management regulations require every municipality to implement its own regulations, often as stringent or more stringent than State regs.
• Affordable Housing is being implemented by all communities and towns in Northern NJ.
• John Pokryfki of Axis Insurance provided 2021 market trends for cannabis: 1) medical and recreational use expected to be legalized in New York State and Texas; 2) COVID crisis making medical cannabis an essential industry; 3) movement toward more indoor growing due to control over environment, water, power, security, etc.; 4) access and financial claims to evolve from cash-based to traditional banking; 5) increased need for cyber insurance to protect personal information and cover expected cyber breaches.  Note: 90% of data claims are from insiders (growers and sellers); Australia recently reported a major cyber breach with $36M settlement.
• Bill Hanson of NAI James Hanson reported the 3-to-5-year demand for industrial space and development continues, with pricing up in rent and sales markets; $200/SF for new and old properties in great demand. The NNJ office market has seen an uptick in short-term leases due to COVID with change expected as restrictions lessen later in the year.  Multifamily continues to be strong and competitive, with people chasing properties. Retail properties are still weak.
• Eric Grillé of Davis Environmental Law noted an increase in transactions, due diligence and court cases over the last 4-5 months. Virtual court appearances and ZOOM meetings are the norm. Bill Hanson and Joe Mele reported transactions are taking longer, particularly for DEP approvals; Eric anticipates timing will pick up in the next few weeks.
• Bill Hanson reported his firm’s office re-opened at 50% capacity in May 2020. 70% of his staff want to be back in the office, although some remain hesitant. They began with a staggered schedule, rotating people every other day. Cubicle space and open seating are set at 6 feet apart; traffic arrows are in place on floor corridors; common areas are wiped clean hourly; masks are mandatory except in private offices; temperatures and symptom reports are taken daily on entry. The office replaced its air filtration system with a new, more efficient ultra-violet one.
• • Joe Mele reported that most of Dresdner Robin staff have been working remotely and are anxious to return to the office. Their precautions include an app with four health questions to be answered each day; temperatures taken upon entry; and mandatory mask wearing except in private offices. Client meetings continue to be done virtually. Other members reported similar procedures.