Event Recap: 2021 Central NJ Real Estate Forecast
I recently attended the Princeton Mercer Regional Chamber’s 8th Annual 2021 Central NJ Real Estate Forecast. I joined nearly 300 others virtually for a very insightful discussion from some of the industry’s top experts, who offered predictions for the Central New Jersey real estate markets.
My key takeaways from the event include:
Residential Real Estate
- Projections are optimistic. The current market has higher demand than inventory available.
- Many professionals believe the residential market is being driven by consumers wanting to leave the surrounding cities due to the COVID-19 pandemic.
Commercial Real Estate
- One of the biggest surprises for me was hearing that 74% of employees want to return to the office. This desire is keeping the suburban office market alive and robust.
- The expectation is that more individuals return to the office by the 3rd quarter of 2021.
- There is an expectation that office space will be converted to lab and life science space in the Princeton area.
- Multi-family development will be in demand as more people leave Philadelphia and New York City.
- Millennials’ demands in the housing market will continue to push the need in the commercial real estate realm.
- The trends in commercial real estate are being impacted by how state and local governments react to the pandemic and what they allow and restrict.
- The current commercial real estate downturn isn’t a typical cyclical downturn, but instead, a pandemic forced downturn expected to reverse slightly when the pandemic restrictions are removed.
While it’s still too soon to know the full impact the COVID-19 crisis has had on real estate, trends offer a look into what a post-pandemic industry might hold. Stay tuned – I know I will be.
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©2021 Klatzkin & Company LLP. The above represents our best understanding and interpretation of the material covered as of this post’s date and does not constitute accounting, tax, or financial advice. Please consult your advisor concerning your specific situation.