GRID Real Estate’s 2024 Jersey City Trends Report: West Side and Lafayette and Journal Square cool and feel the effects of the Fed policy and rising interest rates.
JERSEY CITY, N.J., September 1, 2024 – The Jersey City-based commercial real estate firm Grid Real Estate LLC announced today the release of their 2024 Jersey City Trends Map. The Trends Map, now in its 8th year, has become a go-to tool for understanding how Jersey City is developing.
“Over the past eighteen to twenty months, we have seen a general cooling in the multi-family development market and stabilized asset sale throughout the city, region and country. Real estate, which is highly sensitive to interest rates, was drastically affected by these general credit conditions. High interest rates have frozen the capital markets for commercial real estate. The one-two punch of high interest rates and inflation has had a dramatic impact on the development industry and real estate in general. As a result, many large projects, that have entitlements in place, have found it difficult to move forward with many of their investors waiting on the sidelines for rates to stabilize and fall. This has led to a difficult market to raise the necessary Limited Partnership investments that these large projects need to break ground and go vertical.” Says Bob Antonicello, founder and President of Grid Real Estate.
Click to download 2024 GRID Development Trends Report + Map
The 2024 Trends Map reflects this cooling of the city, but the underlying demand for the rental units remains healthy. That demand is reflected in the brisk leasing of Overlook Flats in Journal Square and early leasing at Journal Squared 3 and 3 Acres on the West Side.
As interest rates begin to lower and stabilize, we anticipate growth to continue in these growth centers through 2024 and beyond. However, affordable housing continues to plague the city and the high interest rate environment has only exacerbated that problem. The spreading gentrification will only increase the affordable housing problems going forward.
About GRID Real Estate LLC.
Grid Real Estate is a boutique real estate brokerage and advisory firm dedicated to the renewal and regeneration of communities through smart and creative real estate brokerage and advisory services. Decades of experience in both the private and public sector has provided us with a clear understanding of the risk-and-opportunity balancing act property owners, commercial tenants, governmental entities and institutions confront on a daily basis. Understanding that “balancing act” has made Grid a valuable team member for our clients.
Contact: Bob Antonicello
Email: bantonicello@gridcre.com
Phone: (201)739-8441
