“It’s Not What’s Happening with Vacancies, It’s What’s Happening with Rents”: Part II of How the North Gold Coast Compare to Other New Jersey and NYC Markets

FORT LEE, New Jersey – In part one of this story, we heard from Justin Levitt, Principal at PGIM Real Estate Finance, about how different sub-markets within New Jersey compare and contrast. Zooming into what’s happening on the New Jersey Gold Coast, Levitt thinks that there is still room to go with rents, even in Hoboken and Jersey City. “From my perspective, I would rather do a transaction now, on the Jersey Coast, than, say, in Manhattan, where it will be a bit of a push-deal, because there is still room to go with those rents,” he explains. “There’s still growth available. In Manhattan, everyone knows where it will settle out, because of all the supply and what is happening to the fundamentals,” says Levitt. “Even though vacancy rates in the whole region are still really strong, it will come down to what is happening with rents and concessions. Everything is getting absorbed, and the supply of where those tenants are coming from is getting absorbed again.” And what’s the bottom line? “It’s not what’s happening with vacancies, it’s what is happening with rents,” says Levitt. “That’s going to be the story about how this cycle ends.” As far as the northern Gold Coast, Levitt think that it’s a little newer to the scene than Hoboken or Jersey City, so there is less historical data to show where rates have been, and therefore where rents are going. So, there’s a…