Middle market companies across New Jersey have spent the past several months operating through uncertain times: higher interest rates, geopolitical volatility, labor pressures, and rapid technological change as AI booms. On top of that, CNBC’s recently released Top States for Business rankings shows the state is facing challenges in terms of economic competitiveness and business friendliness as competition from our neighbors like New York, Pennsylvania and Connecticut heats up.
This recent ranking confirms what many business owners and executives are feeling: stress and pressure from a highly competitive and uncertain environment. But the middle market companies in New Jersey best positioned for the next phase will be the ones that know where their liquidity stands and their capital options. Some are taking a wait-and-see-approach, but businesses with ample liquidity are hyper-focused on return on that liquidity. In today’s rate environment, that means maximizing returns on balance sheets and/or focusing on government-backed options like treasuries and bonds. This focus has been a change from the last couple of years and will likely remain through 2026 and beyond if rates stay where they are.
And despite these challenges, companies can’t afford to wait for certainty. As the year progresses, it’s important to plan early for next year’s capital expenditures. The second half of the year is key to build a plan for financing next year’s investment needs to stay competitive, especially as other states begin to catch up. Here are some of the trends I’m seeing firsthand on the ground.
Where growth is blooming in the Garden State
One of the clearest growth opportunities in New Jersey today is in commercial real estate, where significant refinancing needs are coming due through the end of 2027. Many of these transactions originated when rates were much lower, and the market is now working through a large wave of upcoming maturities. Since fewer buyers and sellers are agreeing on prices, that has shifted more attention to refinancing.
Multifamily continues to lead the market, and demand is not limited to the state’s urban cores like Jersey City and Newark. Activity is visible across North, Central, and South Jersey, supported by strong absorption, constrained single-family housing supply, and development near universities, health systems, transit corridors and employment hubs. Projects that combine housing with amenities, dining, wellness options and convenient access to work and transportation are especially well aligned with how residents increasingly want to live. A good example of this is a transaction we worked on to support the financing and development of The Park, a former suburban office campus that’s been transformed by the Connell Company into a vibrant mixed-use community in Berkeley Heights. This $500 million redevelopment project has brought walkability to a place where people used to drive their cars, go to work from 9 to 5, and come home. Today, Connell has incorporated a 60-acre walkable main street on the property, featuring approximately 160,000 square feet of shopping, dining, and entertainment, as well as apartments and modern, collaborative office spaces. This type of environment that combines health & wellness, hospitality, dining, and lifestyle amenities all in one place is bringing the energy and excitement of the city to our suburbs, creating jobs and new housing opportunities for New Jerseyans.
Mega events are giving middle market businesses a boost
For companies in the region, 2026 is also being shaped by major events. The FIFA World Cup has brought substantial tourism, hospitality, and retail activity to the Meadowlands. That opportunity has provided a boost for middle market companies like food and beverage distributors, hospitality businesses, event rental companies and firms serving restaurants and entertainment venues. The World Cup, combined with America’s 250th anniversary celebrations, have created meaningful tailwinds for businesses positioned to serve large-scale gatherings and regional tourism.
AI creates risk and reward
The creation of the NJ AI Hub has cemented the state as a leader in technology, and we’re seeing how AI is changing how banks and businesses operate. Middle market executives should not only ask how AI can make their own companies more efficient, but they should ask how AI could damage their margins. In some industries, particularly asset-light sectors and professional services, AI could lower barriers to entry, automate formerly valuable work, or change client expectations around speed and cost, which creates direct and competitive risks. It is also raising the stakes for cybersecurity and fraud prevention, which all companies need to address.
Going Forward
For middle market leaders, the second half of 2026 should be focused on three priorities:
- First, assess AI exposure honestly. Do not limit the conversation to internal efficiency. Look at where AI could pressure pricing, reduce differentiation, or create new competitors. Then evaluate whether cybersecurity, fraud controls, and employee training are strong enough for the current threat environment.
- Second, revisit liquidity strategy. Understand what cash is earning, whether it is appropriately diversified, and how it supports the company’s broader risk posture. Liquidity should be actively managed and not passively observed.
- Third, prepare for 2027 capital needs now. Companies with equipment purchases, expansion plans, refinancing needs, or major capital expenditures should not wait until year-end to begin planning. A deliberate financing strategy gives businesses more choices and reduces the risk of being forced into reactive decisions.
There is no shortage of uncertainty in 2026, but uncertainty is not an excuse for sitting on the sidelines, especially as we face competition from other states for talent, resources, and economic investment. The second half of the year should be a moment for companies across the state to pressure-test assumptions. The businesses that win in this environment will not necessarily be the ones making the boldest bets; they will be the ones making the clearest decisions.
Adam Kleinman is New Jersey Market Executive at Wells Fargo Commercial Banking. He is based in Paramus.
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