Every sector providing drama of its own throughout the northern New Jersey market

The real estate business rarely finds equilibrium-it is marked by cycles where values and activity are driven to extremes that provide both opportunity and disappointment, and the last two years have produced both in abundance. Hartz doesn't have any residential real estate, but we can't ignore that the five years of unabated growth in that market created a "cross-class" effect in which our industrial and office properties felt the impact of inflated values for any available property that could be converted to residential. That some properties were permanently lost in those categories will lead to shortages of supplies, only making a recovery in the currently depressed commercial classes that are much more promising. Hartz's long-term perspective inures us to many market cycles-living by the simple philosophy that credit-worthy tenants and long-term leasing and financing strategies provide the surest and highest returns. We took advantage of the inflated values in the office market by strategically repositioning our portfolio-selling office assets in the Meadowlands, where we had been over-represented-and trading into office and industrial assets in other regions. The players in the suburban office markets probably will be hardest hit and most compromised in the long-term by their purchases from 03-06, when rents and occupancy did not justify the speculative activity that rules the marketplace. It will be a while before the debt markets and the "fee-players"-who don't own their real estate but purchase and operate it for distant third parties-work themselves out of that mess. The industrial market has provided none of the drama of the office, retail and housing segments. While leasing activity has been off, the Meadowlands remains the premier market in the country and will continue to be as long as there is a New York City to supply with an unending variety and volume of goods. Very few areas exist in such close proximity to a major port, a major international airport and a population center as large and as dense as the New York metropolitan area. This unique trifecta of assets appeals to manufacturers, both foreign and domestic, who can utilize Meadowlands warehouse facilities to receive goods from the Port of Newark or Newark Liberty International Airport and from there, ship them to end-users in the tri-state area or other metropolitan areas in the northeast. The recent addition of N.J. Turnpike 15X has dramatically improved access to industrial/warehouse space in the Meadowlands Harmon Cove Industrial Area. What was already a tremendous industrial market became even better by enhancing its transportation system and shortening the trip between warehouse space in Secaucus and the ports of Newark and Elizabeth, Newark Liberty International Airport and New York. Highlighting activity, Children's Place has recently consolidated their space in Secaucus, N.J. into a modernized warehouse. The space now consists of distribution and warehouse, front office and a 500 space parking deck. The process of consolidating operations to one location is spiking interest, as it is a more affordable and convenient means to operate. Over the next decade, I anticipate that the region will provide similar solutions to a growing number of companies who seek greater efficiency and synergy. Those last eight miles into Manhattan suck a lot of resources out of companies who do not need to be in New York in the form of the cost of space and the commutation expenses incurred by their employees in time and money. Already in an ideal geographic location, the Meadowlands will remain in a position to take full advantage of the tri-state area's growth by continuing to enhance its transportation infrastructure and lifestyle amenities. Emanuel Stern is the president and chief operating officer at Hartz Mountain Industries, Inc., Secaucus, N.J.