Northern New Jersey has continued its strong performance and is expected to finish 2014 at an increase of 44% in transaction volume and 17% in dollar volume from last year. Compared to 2009’s recession-driven lows, this represents a 198% increase in dollar volume and 65% increase in transactional volume. Sustained rising demand for multifamily and industrial properties has led them to account for 70% of all dollar volume in 1H14.
Pricing in the northern part of the state has reached an all-time high, averaging $175 per square foot after the first two quarters, 68% greater than 2013’s average. Retail pricing reached an even higher ceiling, to $272 per square foot, 50% higher than the 10-year average. Cap rates have nudged up 30 bps, to 7%, in 1H14.