Market Sound Bites June 2014

Transcription

1 Providing Corporate Real Estate Services Since 1932 Market Sound Bites Economy on the Way to Change Bill Sent to New Jersey Assembly Would Suspend Fee on Commercial Development U.S. Equities Advance as Small Companies Rally Before Fed Small Business Week: A Look at How Some Companies are Surviving and Thriving Customer Driven The Blau & Berg The Blau & Berg Company

2 Economy on the Way to Change Crimkav Corporation, T/A The Blau & Berg Company Kenneth F. Crimmins, CCIM, SIOR Chairman & CEO Broker of Record I believe everyone senses that the economy has been improving and the unemployment rate has been declining along with the vacancy rate in Northern New Jersey. All of us at The Blau & Berg Company can see that the rental prices are increasing, sale prices are increasing, free rent is almost nonexistent and absorption of existing facilities is tightening up supply. So, those of y ou who have leases coming up may save yourself some money if you renew your leases now instead of waiting for when your lease term comes up for renewal. From an optimistic economy to an optimistic future, I would like to take this opportunity to announce a milestone that is occurring at The Blau & Berg Company. After 24 years at the helm of Blau & Berg, I have officially turned over the reins of presidency of The Blau & Berg Company to my son, Jason M. Crimmins, CCIM, SIOR, who has been a member of the company since I will remain as an active broker in my new position as Chairman & CEO. Jason, as president, will continue to lead us forward. Jason has promoted synergy throughout the company with strong attention to a brokerage-management style that focuses on the moral conduct aspects of fairness, honesty and integrity in business relations. He continues to be engaged in the demands and disciplines of industrial real estate including cutting edge technology, market knowledge, statistics, negotiations and client relations. Congratulations, Jason!

3 Bill Sent to New Jersey Assembly Would Suspend Fee on Commercial Development NorthJersey.com/The Record Kathleen Lynn June 16, 2014 A 2.5 percent fee on commercial building projects, used to fund affordable housing, would be suspended under a bipartisan bill sent to the State Assembly. The fee, which is paid to towns and was established in 2008, has been suspended twice since then, for a total of four years, to encourage construction in a difficult economic climate. But the latest moratorium on the fee expired almost a year ago. The bill would suspend the fee again, going back to projects started since July 1, 2013, and lasting until the end of this year. Under the bill, municipalities that have already collected the fee since last July would return that money to the developer, unless it has already been spent on affordable housing. The New Jersey Business and Industry Association supports the moratorium, arguing that the cost of doing business in New Jersey is already too high, and the fee would discourage investment at a time when the state's economy has still not recovered from the recession. The fee is based on the assessed value of the project. "You don't want to be saying to developers, 'We want you to come to New Jersey, invest and develop and create jobs, and we'll give you tax incentives to do that,' and on the flip side, say, 'We're going to add 2.5 percent to the cost of your project,' " said David Brogan, an NJBIA vice president.

4 U.S. Equities Advance as Small Companies Rally Before Fed Bloomberg Callie Bost and Jacob Barach June 17, 2014 U.S. stocks rose, extending a two-day advance in the Standard & Poor s 500 Index, as smaller companies rallied before the Federal Reserve s monetary policy decision tomorrow. E*Trade Financial Corp. and Charles Schwab Corp. rallied more than 5.7 percent amid a Senate hearing on broker incentives. Medtronic Inc. (MDT) advanced 2.5 percent as brokers including Morgan Stanley and Credit Suisse Group AG raised their ratings on the company. Netflix Inc. and Expedia Inc. jumped more than 3 percent as analysts recommended buying the shares. Edwards Lifesciences Corp. rose 4.8 percent after receiving approval for a heart device. The S&P 500 gained 0.2 percent to 1, at 3:23 p.m. in New York. The Dow Jones Industrial Average added points, or 0.2 percent, to 16, The Russell 2000 Index of smaller companies rose 0.8 percent. Trading in S&P 500 companies was in line with the 30-day average for this time of day. "Overall, you're still in a market environment where the path of least resistance is up," John Canally, an economic strategist at LPL Financial Corp., said in a phone interview from Boston. His firm oversees about $447.1 billion. "Another bump tomorrow could be the FOMC, although the outcome is largely already priced in." U.S. stocks rose 0.1 percent yesterday as corporate deals and growth in American manufacturing overshadowed escalating tension in Iraq. The S&P 500 (SPX) dropped 0.7 percent last week as Sunni insurgents in Iraq occupied more territory and oil prices jumped to an eight-month high.

5 Small Business Week: A Look at How Some Companies are Surviving and Thriving NJBiz.com NJBiz Staff May 15, 2014 Small businesses dominate the New Jersey economy. Listed here, we profile success stories of bakers, brewers, entrepreneurs and more throughout the state. Cravings handles the appetites of big companies and corporate events Pinnacle finding big success by doing little things that make a difference

6 Customer Driven CCIM Feature With more than 11,000 global stores that serve 200 million customers a week, Walmart is keenly focused on maximizing the customer experience. "By accelerating our small-format store growth we are giving customers more choices to shop with us from one-stop shopping at a Walmart Supercenter to a full-service grocery offering at a Walmart Neighborhood Market to a quick trip at a Walmart Express," says J.P. Suarez, senior vice president of real estate and process improvement for Walmart U.S. The company is also combining brick-and-mortar with ecommerce offerings to meet consumers' rapidly changing expectations. "We currently utilize our physical presence to provide customers with a service called to Site to Store, which gives customers a free shipping option by having the product delivered to their local store." With consumer trends greatly impacting Walmart's real estate needs, CCIM Institute education provides a foundation of knowledge for the company's real estate pros. "The ability to combine CCIM's education with the fast pace and large volume of Walmart job experiences provides a unique opportunity to accelerate our associates' development. The CCIM education assists in elevating their understanding of core real estate fundamentals along with providing an excellent opportunity to network with professionals in the industry." For some of the corporation's real estate associates, earning the CCIM designation is part of a long-term professional development plan. "Walmart associates who earn the CCIM designation learn real estate financial fundamentals that assist with the multilayered decision-making processes that are involved in Walmart's day-to-day operations," Suarez says. "The ability for designees to clearly and effectively communicate with each other and across departmental lines creates efficiencies and drives out waste, which supports Walmart's mission to save people money so they can live better.