Key Takeaways
• Some businesses working full time since June, with policies on masks/social distancing (NAI James Hanson); others working effectively 100% remote (Dresdner Robin).
• Some have split 2 or 3 days in office, remainder at home.
• NJ property tax rates in Jersey City increased by 4-1/2% (compared to past average of 2%) due to COVID; similar rate hikes reported in other NJ cities and towns.
• Mass transit never cleaner or healthier with fewer people and easy social distancing; but what will happen when there’s a return-to-work surge?
• Industrial, self-storage and multifamily continue to be hot, with the office market described as buoyant, even in the face of changing home/office configurations. Some firms are reducing / changing office configurations, opening smaller satellite offices in the suburbs.
• NJ multifamily still strong, including high-rise buildings. NYC developers are coming to northern NJ, particularly Jersey City. Some COVID-related site planning additions: wider sidewalks and FedX drop off areas.
• Success of online real estate auctions continues, with 46 properties valued at $140M sold nationally. In the last quarter, a notable NJ property bid/sale was reported for a 220K SF retail center on Route 9 in Freehold (Monmouth county). Purchased for $13.8M ($64/SF), the property has 71% retail occupancy with 11 tenants, anchored by Burlington Coat Factory; future plans for the 15-acre lot include multifamily.
• Open air shopping centers are seeing more activity in NJ. Tenants and landlords are attracted to potential outdoor dining and curbside retail pickup utilizing parking lot space.
• Commercial big box retailers are still active. Chipoltle to open new location on Route 130.