By: Yolanda Rivas
2 min read January 2020 — Real estate investors from high-valuation areas like New York, North Jersey, Texas and California are bringing considerable activity to the Southern New Jersey region due to its affordability, according to Leor Hemo, founder and managing principal of Vantage Real Estate Services. The Invest: team recently interviewed Hemo about the strengths, challenges and areas of growth in South Jersey’s real estate market.
What unique investor opportunities does South Jersey offer?
South Jersey geographically is positioned to attract not only investors but also companies that require space, such as those in logistics, transportation and warehousing. South Jersey has the land mass to allow for large-scale, industrial developments. I-95 and or I-295 and the New Jersey Turnpike connect to New York, Washington, D.C., Maryland, and further down to the Southern states. Comparatively, the eastern Pennsylvania and Philadelphia markets lack this land mass. With the national economy so strong, low interest rates and small business confidence up, we are experiencing an influx of small businesses leasing office space. There has even been increased activity in the retail world in the past few years. Retail space is being occupied by service providers, such as healthcare and financial services. There is a soaring demand for large-scale developments for multifamily projects in South Jersey.
What is the landscape for healthcare real estate?
The large healthcare systems are taking over the traditional family practices and specialties. Dental specialists and oral surgeons are active in starting new practices or expanding them. The same can be said for physical therapists and chiropractors. These specialty practices are growing and fueling a large demand for space. By the nature of their business, chiropractors, physical therapists and dentists are always interested in retail space for visibility and exposure purposes.
What challenges do you face in South Jersey?
The biggest challenge is the bureaucracy from our local governments, as well as the tax burden on businesses and individuals. Real estate taxes are still the No. 1 issue for property owners and businesses because of the impact on rents. Some regulations in place are hampering business and growth.
What is your outlook for the company and the market?
In terms of Vantage Real Estate, we just opened a new office in Philadelphia. It is a market we are rapidly growing into. We are also expanding our services portfolio: We have expanded our services and specialties and offer healthcare real estate, business brokerage, investment sales and multifamily as well. If the economy does well, South Jersey will do well, provided the regulatory framework remains unrestrictive.
To learn more about our interviewee, visit:
Vantage Real Estate Services: https://www.vantageres.com/