SJ Biz 119 Economic Forecast - v2 - FINAL_Layout 1 1 / 17 / 19 1 : 17 PM Page 3 to spur revitalization in many communities . mercial real estate , ” he says . “ We continue 2019 More people with jobs have more money to experience strong prospect and leasing to spend on food , commodities , luxury activity in our portfolio , and after completing items and basic necessities . ” a significant number of tenant expansions BUSINESS Kehs says he expects the region’s econ - in 2018 , we believe this trend will continue omy to remain strong through 2019 and forward into 2019 . AST FOREC leases he is optimistic about ongoing improve - “ Additionally , a number of new and renewals procured in 2018 were for ment in community housing and devel - longer than customary lease terms which opment . “ Keep a copy of everything , and follow we see as a good sign of positive market “ The South Jersey economy in 2019 up to be sure when all this is resolved fundamentals , ” Whitesell concludes . should be stable given the significant ad - you’re given proper credit . ” With strong gains in the commercial vances of previous years , ” he notes . “ That challenges . With the shutdown starting on Dec . real estate sector South Jersey’s economy doesn’t mean there aren’t There are too many foreclosed homes . 22 , not only has it tainted 2019 so far , but benefits from the tenants who are taking There are still issues to resolve in our it closed out a strong 2018 on a decidedly advantage of the leases while the com - most distressed communities . But , on the sour note . munities benefit from the tenants them - whole , I believe the region is seeing new “ 2018 was a solid year for U.S . growth , selves . This is the trickle effect Steve Kehs , investment , new industry , new opportunities driven by consumer spending and business vice president of Triad Associates , says on the horizon , and I am optimistic . ” development , both of which were boosted helped to create a robust 2018 and set Charles Muracco , CEO of CLM Tax by personal and corporate tax cuts , ” says 2019 up for success in his field of housing Advisors , says with the possibility of such Rhea Thomas , economist with Wilmington and community development . a strong 2019 ahead , the biggest deterrent Trust / M & T Bank . “ The labor market has “ The economy of southern New Jersey he sees for business owners in the coming been robust nationally , and New Jersey’s finished 2018 in very good shape , ” he year is being fiscally irresponsible during labor market has also mirrored this , with says . “ Unemployment rates in all of the this period of volatility . the unemployment rate at 4 percent , the eight southern counties were at record “ Those that budget and drive those lowest since 2001 . lows . Housing starts finished the year well numbers to every aspect of their business “ Sectors such as manufacturing as well ahead of where they started . point to a will fare better than those that ‘ shoot from as trade , transportation and utilities have “ These strong numbers couple points relative to community de - benefited from broader U.S . economic velopment , ” Kehs continues . “ First , with a growth , ” she continues , “ with New Jersey job growth in these strong economy there is new , private sector experiencing strong areas in 2018 . ” investment entering the market that spurs It will undoubtedly take some time for both the construction of new homes and the government to recover from the shut - the rehabilitation of or sale of existing down , but if the country is able to maintain properties . Second , a strong economy the strongholds it had at the closing of means that retail and commercial activity 2018 , there is potential for 2019 to carry that helps to anchor downtowns is helping on in a positive direction . This is particularly true in the commercial real estate realm , says James Whitesell , executive vice president of leasing for Whitesell Construction Company . “ Despite many interpretations regarding the U.S . economy’s direction , we believe 2019 will be another good year for com - “ DESPITE MANY INTERPRETATIONS REGARDING THE U.S . ECONOMY’S DIRECTION , WE BELIEVE 2019 WILL BE ANOTHER GOOD YEAR FOR COMMERCIAL REAL ESTATE . . . ” — JAMES WHITESELL , executive vice president of leasing for Whitesell Construction Company 36 | SOUTH JERSEY BIZ | VOLUME 9 ISSUE 1 | SouthJerseyBiz.net