Chris Murphy, Partner, Murphy Schiller & Wilkes LLP
Chris Murphy, a founding partner at Murphy Schiller & Wilkes LLP (MSW), a leading commercial real estate law firm, recently spoke with Invest: about the dynamic landscape of commercial real estate and how MSW is evolving to meet the increasingly sophisticated needs of its clients. “Clients today expect more from their legal advisors than ever before, and we have consistently risen to that challenge. Whether our clients are developing multifamily, industrial, or retail projects, the complexity of deals continues to grow. Our ability to provide a comprehensive, one-stop solution for all commercial real estate legal matters has been a significant differentiator in this market.”
What changes over the past year have most impacted MSW, and in what ways?
Our firm is dedicated exclusively to commercial real estate and development matters. As a boutique practice with 26 attorneys and 35 total employees, we offer end-to-end legal services, including acquisitions, sales, leasing, finance, environmental, land use and zoning, construction, and litigation. I lead the firm’s Land Use, Zoning, and Redevelopment practice, as well as our Tax Credits and Incentives group. While our focus is solely on the commercial real estate and construction sectors, our team’s breadth of experience allows us to serve as a true one-stop shop for clients operating in these industries. We have built a firm that is resilient and successful in any market cycle. Despite a general slowdown in the commercial real estate industry over the past few years, MSW has continued to thrive. Our experience demonstrates that sophisticated legal counsel is essential in every market environment, and our workload has remained strong. The industry has faced significant headwinds recently—higher interest rates, rising construction costs, and market uncertainty—but our firm has continued to grow by helping clients navigate these challenges.
How would you describe the state of commercial real estate and development activity in New Jersey’s urban cores, like Newark and Jersey City?
New Jersey is the most densely populated state in the country and benefits from its proximity to New York City. Elevated rents in both residential and commercial markets have fueled growth, particularly in Hoboken, Jersey City, and Newark. We have seen a surge in client interest in developing projects on this side of the river, and our firm has been involved in some of the largest residential and industrial developments in the state in recent years. While there are always challenges—working with municipal governments, planning and zoning boards, and engaging with the public—municipalities are generally eager to see thoughtful, well-planned development. We are proud to have played a pivotal role in securing approvals for transformative projects across New Jersey.
What major shifts have you observed in your clients’ demands over the past year, and which segments have seen a bigger need for your services?
During the period of historically low interest rates in 2021-2022, many law firms focused on the commercial real estate space. As the market has slowed, clients have become more discerning, seeking out advisors who can provide strategic, value-added guidance. We are fortunate to have built long-standing relationships with clients who trust us to help them navigate this complex environment. There is a clear trend toward clients expecting more from their attorneys, and we have been able to meet and exceed those expectations. Multifamily and industrial developments remain strong areas of focus for many developers. The continued growth of e-commerce has driven demand for warehouse and logistics facilities throughout New Jersey, supporting the state’s robust industrial market. On the residential side, the need for affordable housing remains acute. Many municipalities, including Newark, require a significant affordable housing component—often 20%—in new developments. Developers who can structure these deals to be financially viable are finding excellent opportunities to deliver high-quality multifamily projects.
With recent changes to the Aspire Tax Credit Program, how is that impacting project feasibility for multifamily residential projects throughout New Jersey?
As the head of MSW’s Tax Credits and Incentives group, I have seen firsthand the transformative impact of the Aspire Tax Credit Program. Our team has secured over $300 million in tax credits for multifamily projects statewide. The Aspire program serves as a critical gap financing tool for developers who can demonstrate a financing shortfall. In today’s high-interest-rate environment, many projects simply would not be feasible without these tax credits. The Aspire program is making these developments possible. While the process of monetizing these credits continues to evolve, we are actively guiding our clients through it. Virtually every major project in New Jersey’s urban corridors is now evaluating the Aspire program as part of its capital stack.
How are new environmental regulations, such as New Jersey’s Environmental Justice Law, affecting redevelopment projects?
The intent behind these new regulations is commendable, aiming to protect communities and the environment. However, in practice, they can sometimes create significant hurdles for development. We have seen projects become infeasible due to the added regulatory burden, particularly in the affordable housing sector. Navigating these evolving requirements is complex, and we are working closely with clients to address multiple, often competing, priorities. As regulations continue to adapt to changing market and policy conditions, we hope to play a constructive role in shaping solutions that balance environmental goals with the need for continued development.
What do you consider to be the main challenges for your clients in the real estate market, from a legal perspective?
In the industrial sector, there is increasing resistance at both the municipal and state levels to new warehouse development, driven by concerns from government officials and the public alike. Our role as development attorneys extends beyond legal and regulatory navigation—we are also deeply involved in managing the public relations aspects of the approval process. Understanding and addressing the needs of the community and government stakeholders is essential, and that engagement must begin early in the process. In the multifamily sector, parking remains a perennial challenge in downtown areas. Municipalities often require substantial parking, even as they seek to promote walkability and public transit. Balancing these sometimes-conflicting objectives requires careful planning and negotiation. Fortunately, most major New Jersey cities have sophisticated planning professionals, and we have been successful in working collaboratively to achieve balanced outcomes.
What are the firm’s top priorities and goals for the next two to three years?
Our primary focus is to continue expanding our national transactional practice, serving clients across multiple jurisdictions. We are committed to thoughtful, organic growth—recruiting top talent and continually elevating the quality of our services in the commercial real estate and construction sectors. We have no plans to diversify into other industries; instead, we remain dedicated to our core strengths, which we believe we execute exceptionally well. Embracing technological innovation and adapting to changes in both the legal and real estate industries are also key priorities. We will continue to invest in technology and in our people to ensure that MSW remains at the forefront of the industry.
