RUTHERFORD, NJ—It's a good bet that multifamily apartment units being constructed in urban waterfront locations will get absorbed by the market, but it's a question of how long it will take and at what price, say Multifamily Renaissance panelists at this year's RealShare New Jersey conference.

“Rents are growing significantly, but what we are going to be doing on the office side is reimagining the space, opening up the space, bringing in new retail,” said Gabe Schiff, EVP of finance, Roseland, the Mack-Cali subsidiary with a significant presence in Jersey City. “On the residential side, you have to build to your tenant.”

Roseland is designing “workforce” housing in URL, a 100 unit tower adjacent to the downtown office district in Jersey City, which is about to be topped off. “The units are smaller, they are more efficient, than what we have built in other class A developments along the waterfront,” says Schiff.

Mixed-use will play an increasing role in the housing and office developments of the future, says Brian Stolar, president and CEO, The Pinnacle Companies. His company is a co-owner of a co-working space, and has investments in hotel properties, each of which play into demographic shifts that include workers leaving the traditional workforce earlier than previously.

“There's a lot being built, but we're in an area with a tremendous amount of population,” says Stolar. “I think the biggest problem is that most of it is getting built for the same income level. For the $75,000-$90,000 income and up, we are building a lot. For the $40,000 to $100,000 income level, we are building very little. At the same time, we are seeing demand for 55 and over communities off the charts.”

There is also a significant rental interest from 75 and older populations that hasn't been seen recently, says Stolar.

“Pricing has doubled in the past 10 years since I've been buying,”says Jason Bilanin, principal, Real Estate Growth Advisors, says.  “How can you compete at the $1,500 rent level? You're not going to see that in the tri-state area.”

“I think the winners and losers are going to be determined by who has the ability to find that needle in a haystack, who has the patience to sit out when the markets feel like they are topping, and who has the ability to put Humpty Dumpty back together again when things don't work out,” says Adam Altman, managing member, The KABR Group. “I will say that at this point in the cycle the New York area feels very different than other parts of the country.”

Also participating in the panel was Tom McConnell, CCIM, managing partner, Redwood Realty Advisors. Moderating the panel was Brian Whitmer, CCIM, senior director, capital markets, Cushman & Wakefield.