Temper Expectations

Hope for the best, but plan for the worst.

That’s some of the advice Stan Molotsky, owner and president of SHM Financial, shares when discussing the 2026 economic outlook in South Jersey. And when considering the unsteady financial climate the region—and country—are currently facing, Molotsky isn’t the only one with this recommendation.

South Jersey Biz had a chance to catch up with several local financial and business leaders to see what’s on tap for the 2026 economy. The overall opinion? A positive mindset is a good thing, but preparation is key to protect one’s self in an unpredictable economy.

Mike Dinneen, president and CEO, First Harvest Credit Union: No one can truly prognosticate our financial climate. Economists, the Federal Reserve dot plot and other indicators may give us some guidance, but no one has a crystal ball. We often tell our members and clients that chance favors the prepared. For businesses, this means maintaining liquidity whenever possible. For families and businesses, this also means setting a budget for 2026— the reality is, among the many unknown variables including tariffs, inflation, energy prices, rising taxes and the rate environment, there are many unpredictable factors.

Bryan Eichenbaum, chief lending officer, American Heritage Credit Union: There are a lot of different economic factors in play. I think general economy is the big one. Real estate housing is one. I think just the financial health of the households themselves—of the people—is in play. In general, most consumers are stressed. So inflation plays a big part in that. South Jersey is kind of insulated compared to the rest of the country, in my opinion. Being between New York City and Philadelphia helps insulate New Jersey markets in general. There’s good jobs. Employment is a factor nationally, but typically in the South Jersey market, you have access to Philadelphia which is a pretty good job market. In general, I think South Jersey has opportunities in terms of development. I think long-term there is economic viability here. It just comes down to employment and inflation—those are the big factors. How do consumers feel? It’s a mixed bag today.

Anne E. Koons, owner, Anne Koons Real Estate: I think the economic factors are huge for South Jersey as the overall economy of the state is stagnant. There is not a whole lot of growth business wise except in the medical field. New Jersey continues to lead the country with the highest corporate tax rates and the unemployment numbers have continued to increase with businesses closing, moving out of state or shrinking operations in New Jersey.

Regan Young, founding principal, RYEBREAD Architects: Certainly among them would be the tariffs, the labor shortage and inflation. Do I have to pick just one of them? More than ever now we have to temper our expectations based on the realities.

Sandro Randazzo, director, NAI Mertz: The biggest force shaping commercial real estate—especially smallbay industrial—is the gap between demand and functional supply. The 5,000–50,000-square-foot size range remains undersupplied as small businesses, contractors and lastmile operators all compete for space. Elevated construction costs make new smallbay development a challenge, which keeps vacancies low, rents strong and welllocated buildings highly competitive.

The broader market is also shifting in a positive direction. Capital markets are thawing, lenders are reengaging and confidence is returning after several uncertain years. Industrial remains one of the most resilient sectors, and the demand for powerheavy and digitalinfrastructure space only strengthens the category. In short, 2026 looks like another strong year for industrial asset class.

Anthony Bawidamann, vice president of government and regulatory affairs, Comcast: The biggest economic impact on our industry will be the intersection of public policy, capital deployment and execution speed. As Federal Broadband Infrastructure Projects are slated to start in 2026, execution will matter more than capital. Funding is there, but regulatory complexity, permitting delays and workforce shortages will determine if projects will be on time and on budget. Delays don’t just slow projects; they increase costs and create uncertainty. The key to success will be the ability to align policy, capital and timelines.

Chuck Romanoli, president and CEO, New Road Construction Management: The biggest economic impact to the public sector construction market is voter sentiment about the economy. If voters are unhappy with the economic climate, they are less likely to support public construction projects. Conversely, if the population is satisfied and the economic environment is positive, they will be more likely to approve bond referendums funding public work.

Koons: The biggest impact in the real estate market is pricing and mortgage rates, plus job security. All three factors are equally important concerning the housing market. A lot of businesses have left New Jersey based on the amount of taxes they have to pay here versus other states where the cost of doing business is cheaper and the cost of living is cheaper.

Dinneen: We advise our members and clients to be prepared for the unknown, and take advantage of opportunities to either build savings reserves or reduce debt wherever possible. Both savings and debt reduction can create financial flexibility and optionality.

Molotsky: The uncertainty. There is more uncertainty now—politically, economically—than I can ever remember. With that in mind, you’re going to have a lot of opportunities along the way, a lot of shocks along the way. I think you really have to have a little more flexibility and a little bit more predictability of where your income is going to come from. If it’s not from your job, your career, then it should be stock market-related or investment-related things. You want to focus on things that will protect you, but at the same time give you some form of steadiness in your income to balance out what the dips may possibly be.

Romanoli: The No.1 piece of advice I have for our clients to prepare for the year ahead is “plan for success.” We can most effectively serve our clients and their projects when we are involved early in the process and can help them plan effectively. Owners involved in capital construction projects should engage a team of professionals early in the process.

Randazzo: Plan earlier than you think you need to. The companies that engage a broker and start evaluating renewals or relocations 12–18 months ahead of time consistently land the best spaces and the best terms.

For owners, 2026 is the perfect year to capitalize on capex and make ready work. Clean, functional units with solid power, loading and parking continue to command premium pricing and lease faster—especially as capital markets rebound and investor appetite broadens boosting valuations and exit value. The proactive players will be the ones who win.

Bawidamann: Build flexibility into your strategy. The economy will continue to shift, and the companies that can adapt quickly—rather than over-commit to one outcome—will be best positioned to manage risk and capture opportunity.

Young: We do architectural projects, so good project planning, budgeting and scheduling with conservative outlooks is what is called for. When we say conservative, we mean the opposite of optimistic. In other words, one way of looking at a project is if everything goes right and everything is on time and no prices go up—it could cost this little. That’s the recipe for heartbreak. You need to be conservative and say, “Let’s not expect everything to go right. Let’s not expect all prices to remain the same. Let’s not expect all products to arrive when they tell us they should.”

Molotsky: Everybody has a different philosophy. Being in the financial planning arena for a very, very long time, the conclusion I’ve come to is that nobody really knows what’s going to happen. Hedge what you’re doing. Our philosophy has basically always been you want to hope for the best but at the same time you must prepare for the worst. You want to have something set aside for emergencies. South Jersey, I’ve always said, is a unique area. We’re affected by Philadelphia as well as New York and Washington. Basically, we’re almost like an island unto ourselves. We’re never as good as those economies might be, but we’re never as bad as those economies might be. We function somewhat independently, but we are affected by what they do, especially in the Philadelphia area.

Eichenbaum: For me personally—I’m in my mid-50s—it’s about what are my career goals. What do I want to do with my last 10, 15 years of my career? What does my retirement look like? How do I transition from what I’m doing today for tomorrow? That’s what’s on mind for most consumers. What are my ambitions in life and how do I get from A to B? If they’re a young individual, they’re probably looking at the workforce today. You’re seeing trades popping up more and more. They’re more in vogue. I was reading just recently about home ownership—the average borrower with a 30-year mortgage is 59 years old. If they’re not making extra payments, they’re paying that mortgage off at 89. What are they thinking through retirement? Is owning a home your path, and if it is, how are you going to get there? All these goals are achievable, but you have to have a plan in place to get there.

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Published (and copyrighted) in South Jersey Biz, Volume 16, Issue 1 (January 2026).

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