PARSIPPANY, N.J., Sept. 1, 2010 – Increased activity, the flow of new money, a mark-down of assets, and stabilized vacancies are some of the positive signs that have emerged in the region’s commercial real estate market, according to Robert R. Martie, 2010-2011 Secretary of the Industrial and Office Real Estate Brokers Association of the New York Metropolitan Area (IOREBA). But Martie, executive vice president of Colliers International in Parsippany, cautions that a “slow climb” may be ahead.

“There has been a moderate increase in transaction activity in the last couple of quarters,” Martie said. “It’s not a ‘spike,’ but people generally agree that there has been more activity. Tenants seem to understand that they are looking at the bottom of the market, and if they are going to do something, now is the time to get it done from a pricing standpoint.”

In terms of sales activity, money has returned to the marketplace. “There is a lot of both entrepreneurial and institutional money now,” Martie said. “The fear of toxic debt is history. While there is a lot of bad debt out there, most of it has been shaken loose or has been recapitalized.

“A lot of owners, particularly institutional owners, have been forced to mark their assets to market on their books, enabling them to compete in the adjusted pricing of the market,” he said. “All institutional owners, on a quarterly basis, have to mark to market, so people have adjusted.

“At the same time, the low cost of money has allowed people to recapitalize their debt,” Martie said. “That permits them to go out into the market and once again become profitable.”

The IOREBA secretary also cautions that for the New Jersey market in particular, full recovery may be a ‘slow climb.’ Noting that office and industrial vacancies remain substantial and job growth is what is needed to fill that space, “a lot of jobs are going away and may not be coming back,” he said.

The state’s tax structure, housing and labor costs, and regulatory and compliance issues are all on the table as causative factors relating to the jobs situation. Martie is optimistic, however, that the administration of Gov. Chris Christie “is aware of these issues. He walked into a difficult set of problems, including the state's budget deficit, but he's energized and is making some progress.

“Real estate and business professionals know about these issues, but I don’t know if the general public realizes how many issues we're facing as the national economy rebounds,” he said. “It is immensely important for people to gather around organizations such as IOREBA so that we can be heard en masse.

“IOREBA represents a strong voice,” Martie concluded. “Through the association’s educational, networking and other programs, we are focusing on bringing people together, specifically on these issues, so that they can be effectively and decisively addressed.”

A 30-year veteran of the industry, Robert R. Martie is acknowledged as one of New Jersey's most productive real estate executives. His career has been highlighted by his work with many of the field’s largest institutional investors and owners, and his creative leadership in creating asset value through the leasing effort. Before joining Colliers International in 2010, he worked previously with Advance Realty Group and The Gale Company, managing many of the state’s largest leasing transactions throughout his career. Among his corporate clients have been names such as New York Life, Verizon, Hoffman-LaRoche, Foster Wheeler, Merck, and AT&T.

A graduate of the University of Oklahoma, Martie is also an active community leader, working with such groups as Morris County Rides, the Bonnie Brae School, the Children’s Learning Center, and the New Jersey March of Dimes, which honored him as commercial real estate's Man of the Year in 2006.