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0223 Commercial RE Forecast - 2 - FINAL_Layout 1 2 / 14 / 23 12 : 48 PM Page 1 The drastic impact of COVID - 19on the economy continues to linger throughout the commercial real estate market . B Y K A T I E F R A N C I S TRENDING A TRENDING MARKET he height of the COVID - 19 pandemic has subsided and , despite the threat of a recession , much appears to be tentatively trending in an optimistic direction . However , the nation continues to feel the repercussions Tof the global emergency in all aspects of life , and the commercial real estate market is no exception . Whether it means working from home or doing shopping almost exclusively online , the ways that Americans earn and spend their money have changed drastically over the past few years . This has taken a massive toll on the commercial real estate market and more specifically , its four major classifications comprising retail , multifamily rentals , industrial and office space . South Jersey Biz talked to local experts about the current trends in the region’s commercial real estate , how they took shape , how they are impacting other markets and local residents , and what the future holds for the ever - changing market . TRENDING UPWARD Experts agree that the remarkable impact COVID - 19 had on the economy is continuing to deliver both adverse and beneficial side effects on the multifaceted industry . Of all the classes , industrial builds such as warehouses and assembly and manufacturing buildings were undoubtedly dealt the best hand . Nick Manis is the president of New Jersey Realtors , a trade association bringing together the state’s real estate professionals , and says that The Garden State has topped California as the No . 1 port in the country , crediting the state’s recent booming success to the pandemic . “ When it comes to the dif - ferent asset classes in commer - cial real estate , industrial was one of the darlings and contin - ues to be even to this day , ” Manis says . “ What happened [ for New Jersey ] to overtake [ California ] was obviously COVID : People stayed home and were ordering online versus 28 | SOUTH JERSEY BIZ | VOLUME 13 ISSUE 2 | SouthJerseyBiz.net
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0223 Commercial RE Forecast - 2 - FINAL_Layout 1 2 / 14 / 23 12 : 48 PM Page 2 traditionally going out to the store , so we needed more warehouses . ” Since the pandemic came on extremely abruptly and affected so many people , the desire for online goods came in sur - pluses , creating a dire need for industrial buildings to keep pace with that new de - mand . New Jersey proved to be the ideal lo - cation for many new major corporation warehouses , assembly and manufacturing buildings . Being near two major cities and multiple ports of transportation allows local industrial operations to efficiently manufacture and distribute goods while limiting costs and delivery times . Anne Koons , owner of Anne Koons Real Estate , emphasizes the importance of location when it comes to industrial buildings . “ You’re in between two big metropolitan areas . There’s the port in New York and in Philadelphia and the Camden port , ” Koons points out . New Jersey’s physical location and the convenience it brings to industrial builds are far beyond the only thing driving the state’s commercial real estate trends . Other perks and amenities nudge residents to the area and have significantly impacted the multifamily market . For example , the state also has some of the best public school systems in the country and has re - mained a top educational competitor for years , making it an ideal place for families to settle down and raise their children . Manis recognizes this accomplishment and adds there are even more things that New Jersey offers that make it a great place to live , thus increasing the demand for multifamily residences like apartments and townhomes . “ Aside from the school districts , ” Manis says , “ New Jersey is a small enough state to enjoy a lot of benefits within a short travel distance . So you can go to Atlantic City , you can go to New York and Philadel - phia . You have the whole Shore area , there are mountain areas so you can go skiing , you have farms so you can ride horses . There’s a lot of different things New Jersey can offer families . ” At the same time , the industrial builds dotting South Jersey could also easily deter current and potential residents . Com - mon complaints from residents in these situations include the traffic , noise and air pollution , and overall eyesores that ware - houses bring to communities . As the owner of commercial and resi - dential real estate businesses , Koons knows the importance of seamlessly integrating SouthJerseyBiz.net | VOLUME 13 ISSUE 2 | SOUTH JERSEY BIZ | 29
