Market Conditions in 07102>Question Details

Dawud, Other/Just Looking in Newark, NJ

Thoughts on commercial properties in downtown newark? prevailing cap rates?

Asked by Dawud, Newark, NJ Fri Jan 9, 2009

I am looking at some commercial and mixed use properties in newark, and other areas of essex county. feels very much like a buyer's market, with prices being dropped on several listings. what cap rate should I be targeting? for the past 20 yrs, people have spoken about the potential for downtown Newark, but it doesn't seem to have taken hold yet. what is the outlook for downtown?

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If you take some pretty reliable loan to value ratios into consideration (digging around at City Hall should get you started), you'll find a slow upward trajectory. Loose and indefinable factors such as NJPAC, the Pru Center, the attendance at Newark Bears games and, just lately, the paid-in-advance bookings for the Pru, you'll get the shivery feeling that the time you've spent NOT investing in Newark downtown was time and money wasted. Indexing thru the Star-Ledger's on-line service is another way to look at upwardly-climbing value. Though we all know the SL is gung-ho, their reports are unusually keen. Traffic studies indicate that this is a walking city, with more than adequate public transit (all bus, tho). Street parking is still possible, tho at a premium. Finally, look carefully at who has invested, what they have invested in (all public record stuff) and how much they are in hoc for their decision. My opinion? Better money can't be spent--too many people have ante in the pot!
0 votes Thank Flag Link Fri Apr 10, 2009
It is definitely a buyers market! The rates for real estate in Newark and Essex County are heavily discounted. Terrific deals can be found all over, and owners/ developers are offering incentives galore. Cap rates depend on a number a variables, depending on the use and threshold of teh purchaser. The City of Newark is extremely pro development with much being planned over the next few years. There is much happening in the City these days. The outlook for downtown Newark is very good and there has never been a better time to invest in the City. Our office has a National Redevelopment Division which specializes in the City in Newark. Feel free to contact me to discuss further.

Ellen Quentzel
Commerical Specialist
National Redevelopment Division
Jordan Baris
201-736-1600 office
201-859-5840 mobile
0 votes Thank Flag Link Mon Mar 16, 2009
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