What else is a major challenge for the industry besides the capital markets? – Real Estate NJ

We asked the members of our 2024 Owners’ Council the question. Here’s what they had to say.

Lance Bergstein

CEO

Lincoln Equities Group

There is a huge shortage of “accessible” housing. Today, New Jersey lacks adequate programs that incentivize the private sector to provide affordable housing. I think it is extremely important that the government and the private sector work together and figure out how to solve this major problem. I’m very focused on figuring that out, but the economics have to make sense.

Katie Kurtz

CEO

Denholtz properties

For companies like ours, controlling development and construction costs remains critical. Prices rose sharply during the pandemic due to various economic constraints, and since then the costs of land, materials, labor and insurance have remained high and, in some cases, continue to rise. Therefore, it is more important than ever to be thoughtful developers with strong partnerships and a focus on efficiency and value engineering opportunities.

Lou March

president

Construction work in March

A major challenge is character, especially in difficult market conditions. In difficult times it is a real test of integrity. I have seen some companies rise to the challenge and show strength and commitment, while others falter. I can’t wait to give our best to the customers and partners who have shown resilience during these difficult times. They have passed the test of character and will be the ones who will succeed.

Jeff Milanaik

Partner, Northeast Region

Bridge industry

One of the biggest challenges we face in New Jersey is the regulatory and permitting process for new projects. The house rules and the numerous authorities and requirements that need to be followed make it difficult to predict the deadlines for approvals.

Jack Morris

President and CEO

Edgewood Properties

Inflation and rising costs such as insurance and property taxes have a significant impact on our business on several fronts. This combination not only complicates the timing of development. It reduces the ability of our multifamily residents to pay rent when real incomes do not rise above inflation and removes a portion of the population from the Class A luxury market. On the commercial side, these expenses impact and limit the profitability of our retail tenants Capacity of both new and established companies to open new locations. We also always keep an eye on employment growth. In order to be successful, our company needs a strong labor market.

Mark Shearer

Senior Managing Director, North Central Region

Rockefeller group

Tenant demand for commercial property remains somewhat subdued and difficulties in obtaining permits and entitlements remain.