Cushman & Wakefield is pleased to announce the release of their exclusive year-end 2014 New Jersey Property Sales Reports. These unique, industry-leading reports provide a comprehensive study of the investment sales market by product type in the northern New Jersey area (Bergen, Essex, Hudson, Middlesex, Passaic, and Union counties).
The region saw yet another year of impressive growth, finishing 2014 with 1,630 transactions, an increase of 77% from last year. Dollar volume reached $5.7B, the highest total since 2006, an increase of over 200% from 2009’s recession-driven lows, and 37% higher than last year’s sum. Pricing in the northern part of the state rose substantially, averaging $174 PSF over the year, a 10-year high and 67% greater than 2013’s average. Cap rates climbed to 7.1% this year, up from 6.7% in 2013. The fourth quarter bookended 2014 with an optimistic outlook as quarterly dollar volume for the multifamily, industrial, and retail sectors all surpassed their quarterly averages for the year by an average of 10%.
“The northern New Jersey investment sales market saw pronounced growth in 2014, driven primarily by strengthening economic fundamentals, tax incentives like “Grow NJ” and investor interest in alternative markets as tenants and residents search for affordable work and living accommodations outside of New York City. As a result northern New Jersey saw its highest dollar totals since 2006, finishing the year with $5.7B in total sales activity,” stated Adrian Mercado, Vice President, Research. “We expect northern New Jersey to maintain, if not increase its number of properties sold across core product types and dollar volume to increase as investors seek institutional grade product,” added Mercado.
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Neighborhoods: Union County, Essex County, Bergen County, Passaic County, Middlesex County, Hudson County