South Jersey BIZ - Issue #1 (January 2026)

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SJ Biz 0126 Economic Outlook_Layout 1 1 / 8 / 26 12 : 12 PM Page 2 well - located buildings highly competi - Molotsky : The uncertainty . There is more tive . uncertainty now — politically , economical - The broader market is also shifting in a ly — than I can ever remember . With that TEMPER positive direction . Capital markets are in mind , you’re going to have a lot of op - EXPECTATIONS thawing , lenders are re - engaging and portunities along the way , a lot of shocks confidence is returning after several un - along the way . I think you really have to 2 0 2 6 B U S I N E S S F O R E C A S T certain years . Industrial remains one of have a little more flexibility and a little bit the most resilient sectors , and the demand more predictability of where your income ? play . I think general economy is the big for power - heavy and digital - infrastructure is going to come from . If it’s not from your one . Real estate housing is one . I think space only strengthens the category . In job , your career , then it should be stock just the financial health of the households short , 2026 looks like another strong year market - related or investment - related things . themselves — of the people — is in play . for industrial asset class . You want to focus on things that will In general , most consumers are stressed . protect you , but at the same time give So inflation plays a big part in that . AnthonyBawidamann , vice president of you some form of steadiness in your South Jersey is kind of insulated com - governmentand regulatory affairs , Com - income to balance out what the dips may pared to the rest of the country , in my cast : The biggest economic impact on possibly be . opinion . Being between New York City our industry will be the intersection of and Philadelphia helps insulate New Jer - public policy , capital deployment and ex - What is the No . 1 piece of advice you sey markets in general . There’s good ecution speed . As Federal Broadband In - have for clients and customers to pre - jobs . Employment is a factor nationally , frastructure Projects are slated to start in pare for the financial year ahead ? but typically in the South Jersey market , 2026 , execution will matter more than Romanoli : The No . 1 piece of advice I you have access to Philadelphia which capital . Funding is there , but regulatory have for our clients to prepare for the year is a pretty good job market . In general , complexity , permitting delays and workforce ahead is “ plan for success . ” We can most I think South Jersey has opportunities in shortages will determine if projects will be effectively serve our clients and their terms of development . I think long - term on time and on budget . Delays don’t just projects when we are involved early in the there is economic viability here . It just slow projects ; they increase costs and process and can help them plan effectively . comes down to employment and infla - create uncertainty . The key to success will Owners involved in capital construction tion — those are the big factors . How do be the ability to align policy , capital and projects should engage a team of profes - consumers feel ? It’s a mixed bag today . timelines . sionals early in the process . Anne E . Koons , owner , Anne Koons Real Chuck Romanoli , president and CEO , Randazzo : Plan earlier than you think you Estate : I think the economic factors are New Road Construction Management : need to . The companies that engage a huge for South Jersey as the overall econ - The biggest economic impact to the broker and start evaluating renewals or omy of the state is stagnant . There is not a public sector construction market is voter relocations 12 – 18 months ahead of time whole lot of growth business wise except sentiment about the economy . If voters consistently land the best spaces and the in the medical field . New Jersey continues are unhappy with the economic climate , best terms . to lead the country with the highest cor - they are less likely to support public con - For owners , 2026 is the perfect year to porate tax rates and the unemployment struction projects . Conversely , if the pop - capitalize on capex and make ready work . numbers have continued to increase with ulation is satisfied and the economic en - Clean , functional units with solid power , businesses closing , moving out of state or vironment is positive , they will be more loading and parking continue to command shrinking operations in New Jersey . likely to approve bond referendums fund - premium pricing and lease faster — espe - ing public work . cially as capital markets rebound and in - What do you foresee as the biggest vestor appetite broadens boosting valua - economic impact to your industry in Koons : The biggest impact in the real tions and exit value . The proactive players 2026 ? estate market is pricing and mortgage will be the ones who win . Regan Young , founding principal , RYE - rates , plus job security . All three factors BREAD Architects : Certainly among them are equally important concerning the hous - Bawidamann : Build flexibility into your would be the tariffs , the labor shortage ing market . A lot of businesses have left strategy . The economy will continue to and inflation . Do I have to pick just one of New Jersey based on the amount of taxes shift , and the companies that can adapt them ? More than ever now we have to they have to pay here versus other states quickly — rather than over - commit to one temper our expectations based on the re - where the cost of doing business is cheaper outcome — will be best positioned to man - alities . and the cost of living is cheaper . age risk and capture opportunity . Sandro Randazzo , director , NAI Mertz : For your industry specifically , what Young : We do architectural projects , so The biggest force shaping commercial are the most important things clients good project planning , budgeting and real estate — especially small - bay indus - should consider for their financial scheduling with conservative outlooks is trial — is the gap between demand and future ? whatiscalled for . When we say conservative , functional supply . The 5,000 – 50,000 - square - Dinneen : We advise our members and we mean the opposite of optimistic . In foot size range remains undersupplied as clients to be prepared for the unknown , other words , one way of looking at a small businesses , contractors and last - and take advantage of opportunities to project is if everything goes right and mile operators all compete for space . Ele - either build savings reserves or reduce everything is on time and no prices go vated construction costs make new small - debt wherever possible . Both savings and up — it could cost this little . That’s the bay development a challenge , which debt reduction can create financial flexibility recipe for heartbreak . You need to be keeps vacancies low , rents strong and and optionality . conservative and say , “ Let’s not expect 18 | SOUTH JERSEY BIZ | VOLUME 15 ISSUE 1 | SouthJerseyBiz.net

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SJ Biz 0126 Economic Outlook_Layout 1 1 / 8 / 26 12 : 12 PM Page 3 In general , I think South Jersey has oppor - tunities in terms of development . I think long - term there is economic viability here . It just comes down to employment and inflation — those are the big factors . — BRYAN EICHENBAUM everything to go right . Let’s not expect all prices to remain the same . Let’s not expect all products to arrive when they tell us they should . ” Are there certain things to keep in mind M year - to - year , regardless of a positive , Fin neutral or negative financial outlook ? ex Molotsky : Everybody has a different phi - Moff losophy . Being in the financial planning arena for a very , very long time , the conclusion I’ve come to is that nobody really knows what’s going to happen . Hedge what you’re doing . Our philosophy has basically always been you want to hope for the best but at the same time you must prepare for the worst . You want to have something set aside for emergencies . South Jersey , I’ve always said , is a unique area . We’re affected by Philadelphia as well as New York and Washington . Basically , we’re almost like an island unto ourselves . We’re never as good as those economies might be , but we’re never as bad as those economies might be . We function somewhat independently , but we are affected by what they do , espe - cially in the Philadelphia area . Eichenbaum : For me personally — I’m in my mid - 50s — it’s about what are my career goals . What do I want to do with my last 10 , 15 years of my career ? What does my retirement look like ? How do I transition from what I’m doing today for tomorrow ? That’s what’s on mind for most consumers . What are my ambitions in life and how do I get from A to B ? If they’re a young individual , they’re probably looking at the workforce today . You’re seeing trades popping up more and more . They’re more in vogue . I was reading just recently about home own - ership — the average borrower with a 30 - year mortgage is 59 years old . If they’re not making extra payments , they’re paying that mortgage off at 89 . What are they thinking through retirement ? Is owning a home your path , and if it is , how are you going to get there ? All these goals are achievable , but you have to have a plan in place to get w there . SouthJerseyBiz.net | VOLUME 15 ISSUE 1 | SOUTH JERSEY BIZ | 19

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