Market Trends 2Q17 | Northern & Central NJ
Industrial vacancy rates are at historical lows and rental rates are anticipated to rise due to unprecedented demand for retail commerce. Speculative development speeds up its progress. Developers with limited land along the NJ Turnpike are beginning projects in tertiary markets such as Piscataway. Expect cap rates for Class A distribution centers to continue to compress. Look for large national B$ portfolios to be sold in the next quarter.
Market Trends 1Q17 | Northern & Central NJ
According to the US Census Bureau, New Jersey’s unemployment rate is 4.2% with its population of 8.95M. CPI was up .4 for the quarter while the US Import Price Index was up 1. Consumer confidence remains healthy.
8.3% of all retail sales at year end are from e-commerce sales.
Market Trends: 4Q16 | Northern & Central NJ
The US economy grew at a modest pace of 1.9% according to the Bureau of Economic Analysis. It reflected an increase in consumer spending, investment and local/state spending. For the year 2016, GDP increased 1.6% compared with 2.6% in 2015.
Market Trends: 3Q16 | Northern & Central NJ
Despite global economic, political and financial uncertainty, unemployment has remained buoyed hovering around the 5% mark. Trade, Transportation, Utilities and Construction employment grew, contributing to healthy consumer spending and confidence. The US Manufacturing sector rebounded according to the Institute of Supply Management (51.5 PMI).
Market Trends: 2Q16 | Northern & Central NJ
The unemployment rate for NJ has grown 0.8 percentage points since its post peak low of 4.3% in February of 2016, however it is still 4.5 percentage points lower than its peak in October of 2009.
Outlook: not seeing weakness in the upcoming quarters, rental rates and consumption remain healthy. The industrial real estate market continues its unprecedented surge, as rental growth, leasing velocity
and sales power us through the second half of the year.
Market Trends: 1Q16 | Northern & Central NJ
The US economy continued to shrug off fears of a global economic decline due to wage growth. Retail sales increased and jobs were gained. According to the US Census Bureau News, the first quarter of 2016 e-commerce estimate increased 15.1% (±1.8%) from the first quarter of 2015, while total retail sales increased 3.3% (±0.4%) in the same period. E-commerce sales in the first quarter of 2016 accounted for 7.7% of total sales.
Market Trends: 4Q15 | Northern & Central NJ
New Jersey ended 2015 on a high note, capping a year of the strongest job growth in fifteen years; unemployment decreased to 5.1%, consumer spending strengthened at a 3% rate, and according to the Bureau of Economic Analysis, the GDP increased at an annual rate of 1%. Personal consumption expenditures (PCE), residential fixed investment and federal government spending contributed to the increase.
Market Trends: 3Q15 | Northern & Central NJ
July: According to the Labor Department, the US labor markets continued its long march back from the recession with steady job–215,000. On average, employers have now added 235,000 jobs per month, over the past three months. Average earnings for the private sector workers rose five cents in July to $24.99. August: China’s economic struggles have threatened to undermine the US economy. Oil opened below $40 per barrel and cheaper import costs sparked concerns about low inflation.
Market Trends: 2Q15 | Northern & Central NJ
Unemployment, as of June, decreased to 6.1% in NJ (5.3% nationwide) which is the lowest unemployment has been since ‘08. According to the Bureau of Labor Statistics, approximately 223,000 jobs were created in June. Transportation, warehousing, retail trade, health care and business services were among business sectors seeing growth. According to the US Censor Bureau, Manufactured goods and spending indicators accelerated their pace 1.8%, GDP increased 2.3% and the PCE increased 2.2%. The US trade gap grew as exports decreased and imports increased 7% due to the strong dollar.
Market Trends: 1Q15 | Northern & Central NJ
Prior to raising interest rates, the Federal Reserve is looking for more progress in the labor market and inflation objectives to be met. Soft growth data from the first few wintry months, due to port closures in the west and bad weather in the northeast, disrupted the annual growth rate. Recently, the surge in the dollar has subdued exports and increased import demand. Consumer spending should increase slightly in the upcoming quarters due to the drop in oil prices but may dampen domestic exploration.