FLORHAM PARK, NJ-News flash: It's still July. But it is only seven weeks until fall - and a bit less than that until the RealShare New Jersey conference in New Brunswick (see that registration note above?). GlobeSt.com editor Antoinette Martin has already had a few timely mid-summer, pre-fall sit-downs with specialists who will appear as RealShare panelists. First up, HFF's Jose R. Cruz, who delivered a current temperature reading on the various sectors, from an investment analyst's point of view. Here is Cruz on:

MULTI-FAMILY PROPERTY

“The market remains strong, we are still seeing rent growth. In fact the rent just went up again on my apartment in Edgewater. Hey, I sold these guys the building and they still raise my rent! Owners are in no position where rents have to drop.

“Yes, there is a lot of new construction going on, but some of it is 12 to 18 months off from delivery. I don't see new construction as a detriment. In Edgewater, there is one 250-unit building going up and another 250 units to follow. There is still demand. No towns in New Jersey are going be overbuilt at his point.

“We are seeing the most aggressive pricing for Bergen County multi-family. When the rare opportunity arises for investors in that county, it is hotly pursued.

“The condo market hasn't taken off here. They are being built in New York. But the lenders are not excited about lendng for condos in New Jersey.

COMMERCIAL OFFICE

“The office story is not pretty, not exciting. I don't think things are getting worse, but we are not seeing the massive improvement everyone is hoping is coming.

“Investors are very selective these days, and sellers are being selective about what they put out there. At HFF, we closed a little over $2 billion in office transactions last year, and about $1 billion so far in New Jersey this year, so we are on track for roughly the same.

“Office properties are not commanding aggressive cap rates, but we are seeing some value-add propositions that price out anywhere from $30-to-$70 a square foot.

“There are a few deals in the market right now, with special loan services as the sellers. They are getting attention and trading at levels not seen on those assets since I've been in the business.”

RETAIL PROPERTY

“There is a lot of activity on the grocery-anchored front. We see that type of product trading with cap rates in the 6's, mid-6's, low 7 percents. Despite consolidation nationally in the grocery chains, there are still approvals in New Jersey to build. When the opportunity comes to buy a grocery-anchored property, institutions and private groups are interested.

“We sold a shopping center in Woodcliff Lake, 500 Chestnut Ridge Road, earlier this year for over $414 per square foot. We've sold 12 centers with A&P, and have another three under contract. No one is shying away from these assets.

“Power centers are hot right now. A Walmart-anchored, or Kohl's , those are in demand and trading at great prices. A well-located retail center with credit is on every investor's wish list.

Instant Insights /

RealShare Panelist Guages Investment Temp'

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