Commercial real estate agents hope slow but steady growth continues

Commercial real estate specialists in the region will be satisfied if this year’s slow and steady growth in the sector continues as expected into 2013.

That’s the forecast for next year nationwide as well, with the National Association of Realtors predicting modest declines in vacancy rates for office, industrial and retail properties.

Commercial agents reported third-quarter improvement in the mainland Atlantic County market and the sale of some large properties.

The quarter began with the sale of a 30,000-square-foot mixed use/fitness facility at 3330 Fire Road in Egg Harbor Township, with Levin Commercial Real Estate in Atlantic City handling the sale.

Joshua Levin said the investment purchase for $2.65 million involved no change in the businesses leasing space in the facility.

A 90,000-square-foot warehouse/industrial building at 206 W. Parkway in EHT was purchased by Jersey Construction, said Richard Baehrle, of Prudential Fox & Roach in Northfield. The building was owned by Caesars Atlantic City.

Baehrle said this year was good, with settlements done or pending on 280,000 square feet of transactions, with most office or retail.

He said medical uses have driven demand in the office market, which is now starting to outstrip supply.

“There is a misconception that there is an overabundance of office supply,” he said. Hopes for the new year are still pinned to a substantial rebound in the casino industry and the NextGen Aviation Research and Technology Park in Egg Harbor Township finally seeing construction, he said.

“I remain cautiously optimistic that the upward market trend will continue in 2013,” Baehrle said.

Samantha Zerafa Roessler and Frank Sortino, of ForeSite Commercial Realty in Northfield, said they’ve seen slow, steady growth in the office market this year.

“This market is in its second consecutive year of absorption, which is good,” Zerafa Roessler said.

ForeSite’s analysis of the primary office market on the Atlantic County mainland shows a decline in vacancy rates from nearly 13 percent in the fourth quarter of 2011 to about 11 percent in this quarter.

The analysis of four municipalities with more than 300,000 square feet of office space each — including Linwood, Northfield, Egg Harbor Township and Galloway Township — found 206,434 square feet available in the fourth quarter out of total office space of 1.8 million square feet.

In the current quarter, she said, ForeSite has leased properties on New Road and Zion Road in Northfield. Earlier this year, office properties on Central Avenue in Linwood and Chris Gaup Road in Galloway Township were fully leased.

Zerafa Roessler said the highway retail segment has also seen some activity. “We’ve got three properties under contract on the White Horse Pike.”

The office vacancy rate of 11 percent in the core local market is significantly lower than the nearly 17 percent rate reported by the National Association of Realtors nationally.

With the anticipated slow growth in the economy and gradual rise in demand for commercial space, the organization expects office vacancies to remain above 15 percent through next year and into 2014.

Major East Coast markets tracked by the Realtors have office vacancy rates even lower than Atlantic County, with New York and Washington, D.C., at 10 percent. Office property owners are expected to realize a 2 percent increase in rents this year and a bit more next year.

Industrial vacancies are expected to decline only slightly from their current 10 percent rate, and retail vacancies are forecast to hardly ease from their 11 percent rate nationally, the Realtors said.

A 2 percent increase in rents for industrial space and a 1 percent rise for retail locations is expected for the coming year.

As has been true since the housing bubble collapse and foreclosure crisis, apartment rentals remain the strongest commercial division, with a vacancy rate of a mere 4 percent this year continuing in 2013.

That’s a level considered a landlord’s market, and average multifamily housing rents are expected to increase 4 percent this year and nearly 5 percent next year. Contact Kevin Post:

609-272-7250

KPost@pressofac.com

For the original post visit: http://www.pressofatlanticcity.com/business/real_estate/commercial-real-estate-agents-hope-slow-but-steady-growth-continues/article_a376df1c-55f1-11e2-9ba1-0019bb2963f4.html

Real Estate Market Trends: Pending Home Sales Rise

Pending home sales are up sharply in October, though real estate market trends vary be region. Learn more.

Pending home sales – a predictor of signed housing contracts – rose 5.2 percent in October, according to the latest real estate market trends reported today by the National Association of Realtors.

The association’s Pending Home Sales Index has realized 18 consecutive months of annual gains, reaching a reading of 104.8 in October, the highest level since March 2007, excluding a few spikes stimulated by the first-time home buyers’ tax credit, said the Chicago-based trade association.

“We’ve had very good housing affordability conditions for quite some time, but we’re seeing more impact now from steady job creation, and rising consumer confidence about home buying now that home prices have clearly turned positive,” Lawrence Yun, the association’s chief economist, said in a statement.

Home prices rose more than 11 percent in October 2012, compared to October 2011, according to the association. The gains have raised total home equity by $760 billion since the beginning of the year, according to Yun, a figure that could reach $1 trillion by year end.

The Pending Home Sales Index tracks home purchase contracts that have been signed, but not completed. A sale is typically finalized within 60 months of signing. The index reveals regional real estate market trends, according to Yun. “Contract activity surged in the Midwest and is showing very healthy gains in the South, but was down slightly in both the Northeast and West.”

In other real estate market trends, the Commerce Department yesterday reported a 0.3 percent dip in sales of new single family homes for October of 2012. Despite the drop, the seasonally adjusted annual rate of 368,000 home sales for October is 17.2 percent higher than the 314,000 rate for October 2011. Inventories stand at 147,000, a 4.8-month supply at the current sales rate.

“The latest numbers are right in line with our forecast, which projects that sales will resume a slow, upward trajectory going forward and will end 2012 about 20 percent ahead of 2011,” said David Crowe, chief economist for the National Association of Home Builders, a Washington, DC, trade association that tracks real estate market trends.

Source: http://www.millionairecorner.com/article/real-estate-market-trends-pending-home-sales-rise

N.J. real estate: Existing-home sales up with foreclosures

Signs the economy could be on the mend point to existing-home sales, according to the National Association of REALTORS®, which emphasizes the real estate market continues to improve everyday. In August, the NAR reported the national median price rose on a year-over-year basis for the past six months.

Total existing-home sales rose 7.8 percent to an adjusted annual rate of 4.82 million in August from 4.47 million in July, and are 9.3 percent higher than the 4.41 million-unit level in August 2011, reports the NAR.

In addition, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 3.60 percent in August from a record low 3.55 percent in July; the rate was 4.27 percent in August 2011, according to Freddie Mac.

The median existing-home price for houses across the country was $187,400 in August, up 9.5 percent from a year ago. The last time there were six back-to-back monthly price increases within a year was from December 2005 to May 2006. The August increase was the strongest since January 2006 when the median price rose 10.2 percent from a year earlier.

Distressed homes, which are categorized as foreclosures and short sales, sold at discounted rates, and accounted for 22 percent of August sales (12 percent were foreclosures and 10 percent were short sales), down from 24 percent in July and 31 percent in August 2011. Foreclosures sold for an average discount of 19 percent below market value in August, while short sales were discounted 13 percent, reports the NAR.

NAR Chief Economist Lawrence Yun said, according to the NAR website, that favorable buying conditions get the credit. "The housing market is steadily recovering with consistent increases in both home sales and median prices. More buyers are taking advantage of excellent housing affordability conditions," he said. "Inventories in many parts of the country are broadly balanced, favoring neither sellers nor buyers. However, the West and Florida markets are experiencing inventory shortages, which are placing pressure on prices."

Real estate experts say first-time buyers accounted for 31 percent of purchasers in August, down from 34 percent in July; they were 32 percent in August 2011.

Single-family home sales rose 8.0 percent to a seasonally adjusted annual rate of 4.30 million in August from 3.98 million in July, and are 10.0 percent above the 3.91 million-unit pace in August 2011. The median existing single-family home price was $188,700 in August, up 10.2 percent from a year ago.

Despite the positive outlook from the NAR on homeownership, many Garden State homeowners are currently still under water on their mortgages.

The Mortgage Bankers Association says New Jersey has the second-highest percentage in the nation of mortgage loans in foreclosure, at 7.7 percent.

Earlier this month, the Philadelphia Inquirer reported that struggling New Jersey homeowners facing foreclosure were supposed to have received aid under the Home Keeper program, which is run by the state of New Jersey and funded with $300 million from the federal bank bailout.

However more than a year after the program launched, state officials said only 10 percent of that money was spent, helping only 750 homeowners.

According to a report from a U.S. Special Inspector General, New Jersey has drawn the lowest percentage of federal money available to the 18 "hardest-hit" states. In a report issued last summer, it compiled data showing that of the 18 states awarded federal money hit hardest by the foreclosure crisis, New Jersey has used the least amount of funding.

The Department of Community Affairs acknowledges the issue and says there will be a series of changes about to be implemented to improve the distribution of funding.

New Jersey Assembly Democrats say they plan to hold hearings on the issue.

Source: http://www.newjerseynewsroom.com/economy/nj-real-estate-existing-home-sales-up-with-foreclosures

Hackensack Real Estate Group Gives Back on the Red Carpet

On Thursday, February 23rd Alexander Anderson Real Estate Group hosted its first annual Red Carpet Open House Event to benefit the Joseph M. Sanzari Children’s Hospital at Hackensack University Medical Center.

With pending homes sales at a 2 year high (according to the National Association of Realtors) Eric Anderson and Corrado Belgiovine owners of Alexander Anderson Real Estate Group decided to celebrate the recovering economy by giving back to the Hackensack community. This fundraiser is unique – Alexander Anderson – newly headquartered in Hackensack – is donating a 10% of all profits from both residential and commercial real estate listings they receive in March, April and May to the Joseph M. Sanzari Children’s Hospital at Hackensack University Medical Center. The Red Carpet Open House Event was the kickoff to this very special 3 month long fundraiser.

“We are seeing a spike in both buyer and seller confidence. And we want the success of our industry to contribute to the success of our overall community. So this spring we are celebrating the recovery of the real estate market by sharing the good fortune with the Joseph M. Sanzari Children’s Hospital.” Said Eric Anderson, CEO of Alexander Anderson as he joined Hackensack Mayor Jorge E. Meneses for the ceremonial ribbon cutting of their new headquarters at 14 Bergen Street.

The most distinguished names in Bergen County gathered at the new Alexander Anderson headquarterd in the historical Salvation Army building. In attendance were over 200 Bergen County political and business notables including: Hackensack Mayor Jorge E. Meneses, Hackensack City Council – John. P. Labrosse, Marlin G. Townes, Karen K. Sasso, Teaneck Mayor Mohammed Hameeduddin, Freeholder Candidate Tracy Zur, City Attorney Joseph Zisa, City Manager Steve Lolacono, Chamber of Commerce Members Darlene Damstrom, Donald Pearlman & Corethia Oates, Chairman Lou Stellato of the Democratic Committee of Bergen County and other local notables – Frank Pratt of Sanzari Enterprises, Dan & Laura Kirsch, and Albert Dib, Executive Director of the Upper Main Alliance.

Guests dined on authentic Greek fare provided by Greek Island Grill owner Gina Tarkazikis and had the red carpet treatment with “paparazzi” pictures taken by Sameh Abdallah owner of Bright Lights Studios. Event logistics were donated by Noelle Frieson of Prosperiti Partners.

Source: http://www.rew-online.com/2012/03/07/hackensack-real-estate-group-gives-back-on-the-red-carpet/