Top ranking unwelcome
In the course of a report about one "bright spot in the state's otherwise sluggish commercial real estate sector," regional business news website NJBiz.com cites a troubling statistic that ought to be incorporated in any discussion over future development in Teaneck. Statewide, the vacancy rate in commercial property is approximately 18 percent versus a national vacancy rate of about 13.5 percent in the office market, according to estimates from the National Association of Realtors. The Teaneck/Ridgefield market, however, is experiencing an eye-popping 40.43% vacancy rate, the highest in the area, according to the article. The article does not contain any analysis of the reasons behind the apparent glut of office space in our area. Any number of factors might explain the phenomenon. It could be a temporary aberration, or evidence that existing space is unsuitable for the current market and needs to be renovated or improved. But it would take a lot of spinning to conclude that the time is right to create additional capacity in our area, even if there are developers out there willing to take on the risks.
posted by Teaneck Blog @ 2:11 PM
6 Comments:
And then there is the condo glut. Concierge Club at Glenpointe, the rental/condo complex off Teaneck Road at Willow Ave, the condos in Englewood off route 4 by the golf course. Taken together with the commercial glut you have the old terminology of "urban" (suburban) blight or decay.
So why are people paying 1&1/2 million for a private dwelling in Teaneck?
And then there is the condo glut. Concierge Club at Glenpointe, the rental/condo complex off Teaneck Road at Willow Ave, the condos in Englewood off route 4 by the golf course. Taken together with the commercial glut you have the old terminology of "urban" (suburban) blight or decay.
Having additional space available both commercial and residential does not create a "decay" or "blight". It just means that currently their is not a market for the property.
"Blight" and "decay" are the result of physical deficiencies or environmental contamination. The Concierge Club and the condos off Willow are not representative of blight or decay.
Lately I've noticed that there are a handful of homes in town on the market for $2.5 million or more. That's $250,000 downpayment and a monthly carry of approximately $18,000. I wonder how long those homes are going to be on the market?
As for the softness in the office market, I believe the 40% vacancy rate refer to Glenpointe and the Challenger Blvd. market which cater to Class A corporate tenants. Because of small lot sizes and non-highway locations, most of the commercial space likely to be developed in Teaneck is of a smaller scale targeted to local businesses rather than big corporate tenants. Take, for example the building under construction on the former Feibel's site. I would assume that this project was not built on spec. Some bank believes that there is enough demand out there to lease-up the building and take out their construction loan.
And Raz is right - equating the cyclical nature of real estate markets with blight and decay is patently absurd.
Perhaps it has more to do with Teaneck's longstanding reputation as being "business UNFRIENDLY". The hassles & high rent send businesses elsewhere.
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