2 min read January 2022 — Jonathan Schultz, the co-founder and managing principal of Onyx Equities, LLC, is optimistic that the New Jersey real estate market will remain a vital economic and investment driver. “Real estate is a hard, tangible asset that should be in everyone’s diversified portfolio. We are seeing a tremendous inflow of people wanting to invest in real estate in all different capacities,” Schultz told Invest:
What were some of your successes and lessons learned from 2021?
We learned that you can respond to adversity by sticking your head in the sand like an ostrich or you can lean in. Our team is everything and our team members are why we have been able to thrive and provide a healthy and safe environment in all our buildings for our tenants. Communicating and understanding their needs became even more critical during the pandemic, as did informed portfolio-wide facility upgrades like adding and retrofitting touchless technology and hiring Experience Ambassadors stationed in lobbies to assist with elevator traffic and social distancing. At 340 Mount Kemble in Morristown, we enhanced a redesign that was already in progress by installing separate HVAC systems for each company, elevating the building to its own league and setting a new standard of air circulation for the industry moving forward. We are very proud that our health protocols earned us the Hackensack Meridian Health Reopening America Assist Program Endorsement and were designed in partnership with Hackensack Meridian Health to be the best in class. We are customer obsessed.
What is your assessment of the real estate market right now?
We are in a moment of change and pace that I have never seen in my career. The younger generation is driving that and you learn quickly that you cannot be static. There is a dramatic change in how retail, industrial spaces and offices are being used that started before the pandemic but was accelerated in the last 18 months. All this is not just driven by technology but innovation. Much like the industrial revolution, we are in the midst of a technology revolution, and as a developer we have to have the infrastructure already in place for the next big idea. Anyone in the Gateway Center buildings can get the fastest internet service through Newark Fiber and the building is already wired to provide 10G upon move-in for our office tenants. We could be the incubator for the 5G version of the Uber/Lyft App model!
People live and work in a different way and companies are learning to define hybrid work models. Regardless, the office building will be a core essential product to the sustainability of a company. We have younger people entering the workforce who want to be mentored. Learning moments of synergy and serendipity are harder to come by on a Zoom screen than in the candid environment of an office. In that regard, we are designing spaces for different personalities. Technology is changing everything, and it is the most creative and innovative time that I can remember. But technology is a tool, not a replacement for people.
How have different segments within the New Jersey real estate market evolved with client demands?
We are in an interesting time for brick and mortar. Traditionally online native brands like Warby Parker and Untuckit now understand that having a store plus an online presence will get the best cost of customer acquisition. We want to create more of the halo effect, to create the best experience for customers and biggest revenue stream for companies.
In industrial real estate, we have never seen so much activity. New Jersey has logistics and ports that have become a strategic space for national industrial business. Residential real estate will continue to grow. The pandemic accelerated people moving out of cities as they sought more space and amenities. New Jersey has great infrastructure, wonderful public school systems and universities, and a lot of corporate headquarters. Our life sciences and healthcare sectors are booming. There are new incentives for the film and television industries. We have tremendous talent and an ability to create environments people want to be around.
What is the advantage of real estate investment?
Real estate is a hard, tangible asset that should be in everyone’s diversified portfolio. We are seeing a tremendous inflow of people wanting to invest in real estate in all different capacities. With high inflation, you might say real estate is a hedge, but it is still a good core component. The great thing about real estate is its democratization. If you buy a house and then rent it out, you are in real estate and that is what makes it such an exciting industry for anyone expanding their investments.
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