David Greek, Managing Partner, Greek Real Estate Partners

In an interview with Invest:, David Greek, managing partner of Greek Real Estate Partners, said that adaptability and long-term vision are essential in navigating New Jersey’s evolving industrial real estate landscape. “Some tenants, during the height of supply chain uncertainty, made leasing decisions based on short-term needs, often taking on more space than was necessary in the long term. As we’ve transitioned out of that period, we’re seeing those tenants reassess and recalibrate their actual space requirements, which has contributed to some softening in the leasing market,” he said.

What have been the most significant recent milestones or achievements for Greek Real Estate Partners?

It has been an interesting few years. The marketplace has experienced significant change, and COVID accelerated some of the underlying trends. One major impact of the pandemic was a renewed focus on the supply chain, both from the public and private sectors. There was a strong desire to ensure that the kind of breakdowns we saw early in the pandemic never happened again.

COVID also significantly accelerated existing trends, particularly in e-commerce, which has driven significant growth in the industrial space. In New Jersey, we experienced nearly a decade’s worth of e-commerce growth compressed into about eight to 12 months. Much of what we’ve experienced in the industrial market has been a direct result of that rapid acceleration.

Some tenants, during the height of supply chain uncertainty, made leasing decisions based on short-term needs, often taking on more space than was necessary in the long term. As we’ve transitioned out of that period, we’re seeing those tenants reassess and recalibrate their actual space requirements, which has contributed to some softening in the leasing market.

That said, one of the more encouraging signs is that the e-commerce demand has proven relatively “sticky.” While there was a slight decline in usage once life returned to normal, adoption levels never dropped back to where they were pre-2020. From a long-term perspective, that’s good news for industrial developers, owners, and investors. 

Still, the market has gone through a painful adjustment, particularly for those who acquired land or development sites in 2022 at peak prices. Land, being one of the most volatile asset classes, has seen notable declines in value. In less dense submarkets, especially in South Jersey, land values have dropped 30%–50%. In North Jersey, the decline is less severe, roughly in the 10%–20% range.

Greek Real Estate Partners is a full-service real estate company. We handle every aspect of the development process in-house, including ownership and investment. Right now, finding viable new development opportunities is difficult, largely due to uncertainty in tenant demand. There’s also a psychological component — it’s much harder for sellers to accept declining values than rising ones. Many sellers remain anchored to 2022 values, making deal-making more complex. As a result, creativity and flexibility have become essential.

Sellers today are more cautious. They want to ensure not only that a buyer can pay a fair price but also that they can actually execute the project — navigate the approval process, work through entitlements, and deliver on timelines. That’s one of our core strengths. We’re based in New Jersey, we know the politics, the procedures, and the players. If a project can be built here, we believe we’re the right team to do it. Local expertise is more important than ever. We’ve carved out a role as a trusted operator that deeply understands this region. But I will say that approvals have gotten significantly harder over the last five years. That’s partly due to the increased attention the industrial sector received during the pandemic.

For the first time, I found myself having dinner-table conversations—outside of my family—about how goods move from warehouses to people’s homes. That awareness, while appreciated, has brought both attention and scrutiny. In New Jersey, the amount of industrial space delivered over the last decade is greater than any previous 10-year period in the state’s history. These aren’t just more buildings; they’re significantly larger buildings that are more visible and have a greater community impact.

With that visibility comes public concern. While I appreciate the attention our industry is getting, we also face opposition from those who don’t want to see it grow. That’s why we helped launch Circulate New Jersey last year in partnership with NAIOP NJ. It’s a coalition that includes real estate professionals, logistics companies, ports, truckers — basically anyone in the transportation and logistics ecosystem. The goal is to better communicate the positive impacts of our industry.

Have you noticed any changes in the types of tenants seeking industrial space in New Jersey, particularly logistics companies?

One of the more notable trends recently has been a shift away from Fortune 500 companies actively signing leases. Many of the large requirements we expected to be actively seeking space have been postponed, or those companies have chosen to outsource logistics to 3PLs instead of managing them in-house.

A couple of years ago, we saw big corporations internalize logistics to gain more control. Now, they’re more focused on reducing costs and avoiding large capital expenditures, which is pushing more of that work back to third-party logistics providers.

Interestingly, we’ve also seen a surge in activity from foreign-domiciled 3PLs, particularly Asian-based ones, many from China. These companies often have limited credit history in the United States, and for some, these leases represent their first U.S. operations. Many started on the West Coast and are now expanding eastward. They’ve been aggressive and opportunistic, benefiting from a softened leasing environment and landlords who are more open to taking on non-traditional tenants to reduce vacancy.

Some have speculated this has to do with tariffs or geopolitical concerns, but I think the more significant driver is the growth of Chinese e-commerce in the United States. There’s a growing number of midsized Chinese companies selling directly to U.S. consumers, and these logistics providers are supporting that trend.

There is, however, a note of caution amid recent geopolitical uncertainty and trade discussions. Some of these tenants are starting to hold back on expansions due to the unknowns, but so far, we haven’t seen any major pullback, just some hesitation.

With the healthcare landscape and life sciences growth in New Jersey, how has Greek been participating in that sector?

It’s a fascinating and vital sector for New Jersey. Our headquarters is in East Brunswick, right in the heart of what we call the “New Jersey Medicine Chest,” an area dense with pharmaceutical manufacturers. They’re here largely because of our strong demographics, including a highly educated, densely concentrated labor force.

At Greek, we have several pharmaceutical tenants, most of whom are generic drug manufacturers. Despite public headlines about regulatory changes, I’d say this sector is used to adapting to shifting policies. From our perspective, the industry is relatively stable. We’re seeing moderate expansion activity — nothing dramatic, but steady.

Pharma tenants, especially manufacturers, make excellent long-term tenants. The facilities we build for them are complex, highly specialized, and FDA-inspected. Once established, companies rarely relocate, providing a high level of stability and long-term value for landlords.

From a construction standpoint, we enjoy the challenge of pharmaceutical projects. They’re technically demanding, require precise execution, and the consequences of getting it wrong are high. That complexity plays to our strengths. We like building complicated things and doing them well.

What is on the horizon that could impact your operations?

We’re entering a gubernatorial election season here in New Jersey, and there’s already been public discussion around industrial development and investment. I encourage everyone in our industry to pay attention and get involved with organizations like NAIOP NJ and Circulate New Jersey.

This is a time when our voices need to be heard by both voters and policymakers. We can’t afford to let others control the narrative. If you’re in this industry and want to ensure your perspective is represented, now’s the time to engage.