Panelists say N.J. real estate sector making steady progress

New Jersey’s real estate sector is recovering from the recession, and should continue to see slow and steady progress in the years ahead, according to a panel discussion this morning at the New Jersey State of the State 2011 conference of the Council on State Public Affairs, at the Palace at Somerset Park.

New Jersey’s real estate sector is recovering from the recession, and should continue to see slow and steady progress in the years ahead, according to a panel discussion this morning at the New Jersey State of the State 2011 conference of the Council on State Public Affairs, at the Palace at Somerset Park.

The panelists were James G. Petrucci, president of J.G. Petrucci Co.; Robert C. Kossar, managing director of Jones Long LaSalle; Chuck Lanyard, president of the Goldstein Group; and Tim Touhey, CEO of the New Jersey Builders Association.

“We have felt business get better, and we see people do things that they do in a better economy,” Kossar said, citing speculative building in areas like the Meadowlands and Edison. “I think things are pointing in the right direction. The state government in general has taken a pro-business turn, and we have seen the effect — and it has been very good.”

Petrucci said he does a lot of work in Pennsylvania, which has “exploited the cost imbalance” it enjoys compared to New Jersey. While New Jersey does a good job of providing economic incentives for large companies, “where we need to do better is the 25- to 125-(person)” companies, where there “are real jobs and organic growth.”

Kossar noted Lt. Gov. Kim Guadagno‘s tour of companies all over the state as a sign of the state’s improved outreach.

“We have never seen this, ever, in my 22 years, never seen this kind of pro-business acumen — and it’s not just talking, it’s doing, and I think it’s great,” Kossar said. “We will begin to win (the competition) with neighboring states”

Lanyard’s firm specializes in retail, which he said already was “being hit before the economy nosedived. (Retailers) were far too aggressive in opening up stores.” But he said New Jersey’s relatively high-income population has been a cushion for retailers.

The retail vacancy rate is about 8 percent in New Jersey, compared to 12 percent or 15 percent nationally, he said.