NYC

NEW FAMILY DOLLAR CLOSED DEAL

CLOSED DEAL!!!

Brand Spanking new Build To Suit Family Dollar.

Savannah MSA one of the strongest markets in the South East.

Repeat buyer.

Bill Howard

Bill@ BennettRealtyLLC.com

908-614-8931

 

For more information on Bennett Companies visit our website; www.bennettrealtyllc.com

About BR&D

Bennett Companies and its affiliated entities is a vertically integrated commercial real estate Advisory and Development Firm.  With over 70+ years of combined experience and in excess of $1 billion in valued transactions the firm focuses on retail/multifamily development and Advisory services that includes; Investment Sales, Retail Landlord Leasing, Tenant Representation, and Multifamily sales.

NEW FAMILY DOLLAR CLOSED DEAL Read More »

State of the COMMERCIAL Real Estate Market

Written By: Tyler Bennett, CEO

Published On: November 16, 2023

 

The past 18 months has been historic by any measure in the commercial real estate space.  As an industry we went from low cost of capital, high transaction velocity, sky high values, and the phycological snap-back from the COVID-19 Pandemic to…Well it’s hard to describe. Since March 2022, the Fed has raised interest rates a whopping 525 basis points!  WOW.  We went from a federal funds target rate of 0.25%-0.50% (March 2023) to a range of 5.25%-5.50% (as of July 2023).  That’s a lot to take on the chin and not fall on the mat.

As a vertically integrated Advisory and Development Company we are uniquely positioned with a perspective from multiple disciplines and asset classes in the Commercial Real Estate Space. Our Advisory platform is diverse with practices that include Tenant Representation, Investment Sales, Landlord Representation, Multifamily Sales, Dispositions, and our Owner/User Platform (O/U).  Additionally, our development platform has a primary focus on multifamily, retail, and commercial assets.

There are lots of opinions out there.  I wanted to share our perspective…and candidly, our opinion of what we think the future will hold.  Note, the following is a condense version for ease of reading.

Retail leasing has been incredibly resilient from the national, regional, and start up space occupiers. Food, entertainment, and health/fitness concepts have generally led the way as the most active category.  Some of this due to pandemic-related subsidies as well as the market demand for new choices.  The best located Shopping Centers and properties have backfilled many of their vacant spaces, have high occupancy rates, and have upgraded/modernized their merchandising mix.  We anticipate that good centers in well-positioned population trade areas will remain strong, many will continue to upgrade their Tenant mix, while space opportunities will begin to loosen up from the over-expansion of many start-up/chase the Post-Covid World deals.

Investment Sales have fallen sharply.  Seller’s expectations on cap rates in many cases equal interest rates for the first time in recent memory, making leverage/debt acquisitions nearly impossible.  Many of well-capitalized Buyers have taken ‘a wait and see’ approach for much of this 18-month, period until more recently.  Unless in a 1031 exchange, many buyers have been waiting for the “bottom”.  We see the investment market as the most opportunistic it has been in over a decade, and a great time to look for and consider an acquisition as CAP Rates have gone up.

Owner/User transactions have held steady after a historic boom.  Resoundingly seemingly unphased by the higher interest rate environment.  Much of this stemming from a historic business/revenue boom for business owners that are looking to either upsize/grow their offering or deploy excess capital to own their real estate instead of lease.  We anticipate this may slow in Q1 until values come down and will re-activate the demand for these types of assets if the overall economy maintains a level of growth and the unemployment numbers stay at or below 5%.

Multifamily sales have become very stagnant with lack of inventory available due to a rise in residential rental rates combined with higher interest rates.  The consensus here has been, “Why would I sell now if I do not have to”.   While this product class has historically had low supply, demand remains strong for fair priced, well positioned assets with upside, keeping private investors demand strong in the less than 100-unit space.  On the larger/institutional side, the market has had its doubts.  Many of the private equity, diverse capital stack deals that were acquired in the last 5 years at compressed cap rates have loan maturity dates upcoming and have not realized the rent growth they expected.  The consensus is there will be opportunity in this space unless lenders work with borrowers on their debt loads.  We expect this space to continue having strong private demand and expect to see some losses/give backs on the larger side.

On the Development Side, things have been very challenging.  Deals are generally underwritten 1-2 years before being put into service and had historically been safe to assume what interest rates would be at the time of stabilization/conversion or exit.  Material pricing has added to an already stressful underwriting process as well as the high basis for land.  All of this is making a typical hurdle return very challenging to find today.  In many cases, additional capital is required as lenders Loan to Cost ratios increased.  We believe this is a time to be patient and not chase any one deal.  On the retail side, we continue to lead with end-users to mitigate risk.  However, margins are slim and cost-of-time consideration is making us patient as we seek worthwhile projects.  On the overall market side, we expect that development demand will continue by virtue of more participants in the market than projects and the “pause” that backlogged new inventory during COVID.  This is a space for

What we see ahead is optimism overall and here is why..

We have the most clarity we have had in 18 months.  Yes, the bar is low but we were in a complete and utter free-fall.  The Fed is steadfast on their targeted 2% inflation rate, no doubt.  We don’t believe rates will increase by more than .25 to .75% in 2024.  We also are not betting on massive rate cuts in 2024 as getting to the target inflation rate can be a stubborn process.  We are near where we will be for the next 12 months, reasonably stable for the first time in a long time. Now is the time for acceptance, settling in, and determining how business is done in this environment.  We don’t EVER believe we will see the artificially low interest rates in this generation again, and most agree with that.  Pricing will improve as sellers decide to accept the reality of the market.

2022 and 2023 will be known as the year of the Spiral.  2024 will be a settling in year.  I recently read a report that said there is over $2 trillion in dry powder capital on the sidelines from family office, investors, institutions alike.  Some (not all) of this will deploy in 2024 creating a reactivation of transactions.  Assets will be lost and given back to lenders and there will be some pain in the next 12 months and beyond.

However, short of another black swan event, we are optimistic that 2024 will be an active year and look forward to servicing our clients, partners, and TEAM.

 

For more information on Bennett Companies visit our website; www.bennettrealtyllc.com

About BR&D

Bennett Companies and its affiliated entities is a vertically integrated commercial real estate Advisory and Development Firm.  With over 70+ years of combined experience and in excess of $1 billion in valued transactions the firm focuses on retail/multifamily development and Advisory services that includes; Investment Sales, Retail Landlord Leasing, Tenant Representation, and Multifamily sales.

State of the COMMERCIAL Real Estate Market Read More »

Ticetown Square, Old Bridge, NJ NOW FULLY LEASED

Top Tomato Supermarket will be occupying 9,653 sf, filling the last remaining vacancy in the center. Congratulations to our friend and client, Harry Rosenblum, owner of the shopping center and wishing much success to Top Tomato. Joel Dicker from Bennett Realty & Development was the sole broker in the transaction representing the Landlord.

For more information, contact: Joel Dicker joel@bennettrealtyllc.com 908-610-8488

About BR&D

Bennett Companies and its affiliated entities is a vertically integrated commercial real estate Advisory and Development Firm.  With over 70+ years of combined experience and in excess of $1 billion in valued transactions the firm focuses on retail/multifamily development and Advisory services that includes; Investment Sales, Retail Landlord Leasing, Tenant Representation, and Multifamily sales.

Ticetown Square, Old Bridge, NJ NOW FULLY LEASED Read More »

Pizza Hut is coming to Fairway Plaza, Old Bridge, NJ

Pizza Hut is coming to Fairway Plaza, Old Bridge, NJ   Bennett Realty & Development LLC would like to announce the signing of a new lease at Fairway Plaza in Old Bridge. The new tenant is Pizza Hut.   Pizza Hut is a great fit and a welcome addition, complementing the re-merchandising and renovation plans for the shopping center.   Joel Dicker from Bennett Realty & Development represented the Landlord, and Sam Kates from GK Commercial Realty Group represented the Tenant in the transaction.  

For more information, contact Joel Dicker at joel@bennettrealtyllc.com 908-610-8488

About BR&D

Bennett Companies and its affiliated entities is a vertically integrated commercial real estate Advisory and Development Firm.  With over 70+ years of combined experience and in excess of $1 billion in valued transactions the firm focuses on retail/multifamily development and Advisory services that includes; Investment Sales, Retail Landlord Leasing, Tenant Representation, and Multifamily sales.

Pizza Hut is coming to Fairway Plaza, Old Bridge, NJ Read More »

28 Main Street, Bradley Beach, NJ – Just sold!

Bennett Realty & Development listed this property and sold on behalf of an undisclosed seller. This challenging building is located in the Jersey Shore enclave of Bradley Beach, NJ. Congratulations to our Seller and the new Buyer.

FOR MORE INFORMATION, CONTACT: TYLER BENNETT | 732.837.4153 | TYLER@BENNETTREALTYLLC.COM 

About BR&D

Bennett Companies and its affiliated entities is a vertically integrated commercial real estate Advisory and Development Firm.  With over 70+ years of combined experience and in excess of $1 billion in valued transactions the firm focuses on retail/multifamily development and Advisory services that includes; Investment Sales, Retail Landlord Leasing, Tenant Representation, and Multifamily sales.

28 Main Street, Bradley Beach, NJ – Just sold! Read More »

New Supermarket coming to Ticetown Square, Old Bridge, NJ

Bennett Realty & Development LLC would like to announce the signing of a new lease at Ticetown Square in Old Bridge. The new tenant is Top Tomato Supermarket which will be occupying 9,653 sf, filling the last remaining vacancy in the center. Congratulations to our friend and client, Harry Rosenblum, owner of the shopping center and wishing much success to Top Tomato. Joel Dicker from Bennett Realty & Development was the sole broker in the transaction representing the Landlord.

For more information, contact: Joel Dicker joel@bennettrealtyllc.com 908-610-8488

About BR&D

Bennett Companies and its affiliated entities is a vertically integrated commercial real estate Advisory and Development Firm.  With over 70+ years of combined experience and in excess of $1 billion in valued transactions the firm focuses on retail/multifamily development and Advisory services that includes; Investment Sales, Retail Landlord Leasing, Tenant Representation, and Multifamily sales.

New Supermarket coming to Ticetown Square, Old Bridge, NJ Read More »

NEW JERSEY FIRM ADDS VETERAN INVESTMENT SALES BROKER AS V.P.

Steve Garthwaite has joined Bennett Realty & Development (BR&D) as Vice President the Holmdel, New Jersey based firm has announced. Steve will play an integral part of the team as he will specialize in the sale and leasing of  retail properties as well as ground up development.

Steve Garthwaite started his career in Commercial Real Estate in 2015 at a top five brokerage firm based in Philadelphia. There, he specialized in the sale of STNL assets and retail shopping centers. Over time he has expanded his focus to also include flex and mixed-use buildings. Having closed over $250 million in transaction volume across 17 states, he consistently ranked as a top producer. Steve has transacted with regional family offices as well as national publicly traded REITS, which include; Agree Realty, American Infrastructure Partners, and ARCTRUST to name a few.

“Steve embodies our ‘great human first’ approach.  He will be an integral part of the Company’s growth today and in the future.  His honesty and integrity are second to none as is his knowledge of the investment sales markets throughout the Country.  I am super excited and honored that Steve has joined us.” Said Tyler Bennett, Founder and CEO of the firm.

Steve Garthwaite added; “I spent significant time speaking with different firms and what separates Bennett is the culture and intentional approach of conducting business within our industry.   The vertically integrated Advisory and Development platform is an uncommon offering that is incredibly beneficial to my existing client base  that will undoubtedly take my career to the next level.”

Steve’s understanding of underwriting, site analysis and negotiation makes him a valuable asset to the partners he transacts with and to BR&D. He resides in Philadelphia with his fiancé and dog Bentley. In his spare time, he enjoys running, riding his motorcycle, traveling, and collecting watches.

About BR&D

Bennett Companies and its affiliated entities is a vertically integrated commercial real estate Advisory and Development Firm.  With over 70+ years of combined experience and in excess of $1 billion in valued transactions the firm focuses on retail/multifamily development and Advisory services that includes; Investment Sales, Retail Landlord Leasing, Tenant Representation, and Multifamily sales.

NEW JERSEY FIRM ADDS VETERAN INVESTMENT SALES BROKER AS V.P. Read More »

Tommy’s Tavern + Tap – Mt. Laurel – Grand Opening Today!

Congratulations to our client Tommy’s Tavern + Tap on their newest restaurant opening In Mt. Laurel, New Jersey. Located on a free-standing pad site in Centerton Square, directly off Route 295 & Route 38, this new restaurant is adjacent to Top Golf, Wegmans, and Costco to name a few.  This marks their first South Jersey location. This magnificent remodel will be an asset for the entire trade.  Thank you to all those involved who made this happen! 

Tommy’s Tavern + Tap – Mt. Laurel – Grand Opening Today! Read More »

Bennett Realty & Development PROMOTES BILL HOWARD to Vice President!

Bennett Realty & Development (BR&D), a full-service commercial real estate firm, is pleased to announce the promotion of Bill Howard to Vice President. Bill has managed the Investment Sales Platform at BR&D since its inception. He maintains a client-driven focus on both the acquisition and seller representation side of the business and has successfully built private client portfolios utilizing his intimate knowledge of the investment sales marketplace.

“I am super proud of the effort and success Bill has had since joining us almost a decade ago. He epitomizes the professionalism that we bring to our client services platform and has successfully executed on large and small transactions in the investment sales space repeatedly. Having Bill on our team has been an honor,” CEO and Founder Tyler Bennett added.

Bennett Companies is a fully integrated commercial real estate company based in New Jersey. Making the platform unique is the Company’s focus on both the Development of retail and mixed-use properties (“Bennett Development) and Third-Party Services (“Bennett Realty & Development”), which include Landlord/Tenant Representation, Investment Sales, Multifamily Sales, Disposition, and Commercial Sales. With a forward-thinking approach, our unique platform has completed hundreds of transactions in excess of $1 billion in value throughout the region.

Bennett Realty & Development is actively seeking new brokers to join our growing team. Email us today to learn more at info@bennettrealtyllc.com

 

Bennett Realty & Development PROMOTES BILL HOWARD to Vice President! Read More »

ASSET ALLOCATION – The solution to market volatility!

$1 Trillion Debt Deluge Threatens Market Calm U.S. government could face borrowing at rates near 6%, up from 0.1% less than two years ago. Stock market volatility, Bank failures. COVID, International / Domestic crisis. The question is where to allocate considerable capital , stress-free.

If you are waking up and checking “the market, ” checking it through the day, ending the day looking at market futures and concerned about where the stock market will open. From what the latest international/domestic crisis will come from and constantly concerned about this asset allocation, I have a positive solution. An asset class that has performed through market volatility, COVID, doubling of interest rates, civil & international unrest.

Owning the real estate of the best-run companies on the planet. Since 2009 well over $600,000,000.00 in closed transactions and not one issue. Owning Walgreens, Monsanto, Fresenius, DaVita, Dollar General, Family Dollar, Dollar Tree, ATT, Starbucks, Jersey Mikes, Aspen Dental, Urgent Care, Shoprite, and Childcare, to name a few. Not one Big Box, Not one office building. Not one failure or missed distribution. NOT ONE.

Long-term income, low risk, real estate upside potential, tax benefits.

An asset class that allows you to sleep well at night.

Let’s have a conversation and see if this asset class makes sense for you.

CONTACT BILL HOWARD FOR MORE INFORMATION:
908.614.8931 | bill@bennettrealtyllc.com

ASSET ALLOCATION – The solution to market volatility! Read More »

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