New Jersey Commercial Office Space is hot right now!
A new Jones Lang LaSalle report found that New Jersey commercial office space is in the “rising phase” in the real estate cycle. According to JLL’s report, New Jersey’s landlord-favorable office space has many commercial real estate industry experts projecting an extremely bright future for the state.
New Jersey’s strong job market attracting companies to office spaces The report found that with the exception of June and July, the state added job gains each month in 2015 for a total of more than 55,000 for the year. This represented a 15-year high in new job creation. With these rapidly increasing job gains, the outlook for the office market is bright for this year.
New Jersey is the more attractive option to Manhattan The most significant reason for this shift toward office space, particularly in the northern and central New Jersey areas, is proximity to Midtown Manhattan. According to Real Estate Weekly, Michael Stoler, president of New York Real Estate TV and moderator of the NYC Real Estate Expo panel, noted that office locations in New Jersey have become popular due to proximity, safety and transportation.
“(The industry) thinks of Hoboken, not Newark, it’s not the topic of interest. But we’ve lost some tenants to New Jersey,” Stoler explained. “Why?”
The answer to the question Stoler posed is simple: cheaper land prices and the same basic amenities are contributing to a positive future for companies moving to New Jersey office spaces. In fact, these northern and central New Jersey locations such as Jersey City, Red Bank, Monmouth County and Bergen County are positioned to have strong futures in the long- term because they are located within 30 minutes of Manhattan. This enables them to offer the same attractive factors of New York City, with the added bonus of more industrial and office spaces, affordable housing and commercial entities.
New Jersey gains support of commercial real estate experts At the NAIOP Annual Meeting and Commercial Real Estate Outlook in New Jersey, more than 300 commercial real estate leaders cited New Jersey as a location with limitless potential. According to an NJ.com report, Benjamin Breslau, international director of Americas research with Jones Lang LaSalle, stated at the conference that the state fits all the criteria of the national push toward urbanization.
“Transit-oriented, dense, urban environments are doing well, and suburban markets are slow,” Breslau argued. “One of the greatest opportunities for developers and investors over the next decade may very well be reinventing the suburbs.”
With the demand for mixed-use office locations on the rise, New Jersey’s abundant land will continue to attract big business. One prime example cited at the conference by Mitchell Rudin, CEO of Mack-Cali Realty Corporation, was his company’s Harborside complex on the Jersey City Waterfront.
“There are 135,000 workers and residents within walking distance of the property who are prospective patrons of retail and dining establishments,” Rudin said.
Ed Russo, CEO of Russo Development, agreed that projects like Mack-Cali’s Harborside complex have the potential to be game-changers in the area due to the close proximity of New Jersey’s suburbs to Manhattan.
“The demographics in the Northeast Corridor are particularly ripe for development,” said Russo, whose firm is currently focused on multifamily and data center projects. “In addition, this year’s Supreme Court ruling relieving the Council on Affordable Housing of responsibility for affordable housing rules and putting it in the hands of municipalities is opening an enormous opportunity we haven’t seen in years.”
Russo also added that there are numerous projects his company is planning in the northern and central New Jersey areas due to a lack of inventory in New York City locations.
“With the shortage of available space and increased competition, we are finally starting to see some meaningful appreciation in rents, which is long overdue,” Russo commented. “We expect this trend to continue in 2016.”
Does Your Homeowners Insurance Provide Adequate Coverage?
Your home is likely your greatest asset, which is why it is so important to adequately protect it. Homeowners insurance protects you from the financial costs of unforeseen losses, such as theft, fire, and natural disasters, by helping you rebuild and replace possessions that were lost While the definition of “adequate” coverage depends upon a […]
Understanding the Importance of a Non-Contingent Offer
Making a non-contingent offer can dramatically increase your chances of securing a real estate transaction, particularly in competitive markets like New York City. However, buyers should understand that waiving contingencies, including those related to financing, or appraisals, also comes with significant risks. Determining your best strategy requires careful analysis of the property, the market, and […]
Fred D. Zemel Appointed Chair of Strategic Planning at Scarinci & Hollenbeck, LLC
Business Transactional Attorney Zemel to Spearhead Strategic Initiatives for Continued Growth and Innovation Little Falls, NJ – February 21, 2025 – Scarinci & Hollenbeck, LLC is pleased to announce that Partner Fred D. Zemel has been named Chair of the firm’s Strategic Planning Committee. In this role, Mr. Zemel will lead the committee in identifying, […]
Novation Agreement Process: Step-by-Step Guide for Businesses
Big changes sometimes occur during the life cycle of a contract. Cancelling a contract outright can be bad for your reputation and your bottom line. Businesses need to know how to best address a change in circumstances, while also protecting their legal rights. One option is to transfer the “benefits and the burdens” of a […]
What Is a Trade Secret? Key Elements and Legal Protections Explained
What is a trade secret and why you you protect them? Technology has made trade secret theft even easier and more prevalent. In fact, businesses lose billions of dollars every year due to trade secret theft committed by employees, competitors, and even foreign governments. But what is a trade secret? And how do you protect […]
What Is Title Insurance? Safeguarding Against Title Defects
If you are considering the purchase of a property, you may wonder — what is title insurance, do I need it, and why do I need it? Even seasoned property owners may question if the added expense and extra paperwork is really necessary, especially considering that people and entities insured by title insurance make fewer […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Demand For New Jersey Commercial Office Space On The Rise
Author: Scarinci Hollenbeck, LLC
New Jersey Commercial Office Space is hot right now!
A new Jones Lang LaSalle report found that New Jersey commercial office space is in the “rising phase” in the real estate cycle. According to JLL’s report, New Jersey’s landlord-favorable office space has many commercial real estate industry experts projecting an extremely bright future for the state.
New Jersey’s strong job market attracting companies to office spaces The report found that with the exception of June and July, the state added job gains each month in 2015 for a total of more than 55,000 for the year. This represented a 15-year high in new job creation. With these rapidly increasing job gains, the outlook for the office market is bright for this year.
New Jersey is the more attractive option to Manhattan The most significant reason for this shift toward office space, particularly in the northern and central New Jersey areas, is proximity to Midtown Manhattan. According to Real Estate Weekly, Michael Stoler, president of New York Real Estate TV and moderator of the NYC Real Estate Expo panel, noted that office locations in New Jersey have become popular due to proximity, safety and transportation.
“(The industry) thinks of Hoboken, not Newark, it’s not the topic of interest. But we’ve lost some tenants to New Jersey,” Stoler explained. “Why?”
The answer to the question Stoler posed is simple: cheaper land prices and the same basic amenities are contributing to a positive future for companies moving to New Jersey office spaces. In fact, these northern and central New Jersey locations such as Jersey City, Red Bank, Monmouth County and Bergen County are positioned to have strong futures in the long- term because they are located within 30 minutes of Manhattan. This enables them to offer the same attractive factors of New York City, with the added bonus of more industrial and office spaces, affordable housing and commercial entities.
New Jersey gains support of commercial real estate experts At the NAIOP Annual Meeting and Commercial Real Estate Outlook in New Jersey, more than 300 commercial real estate leaders cited New Jersey as a location with limitless potential. According to an NJ.com report, Benjamin Breslau, international director of Americas research with Jones Lang LaSalle, stated at the conference that the state fits all the criteria of the national push toward urbanization.
“Transit-oriented, dense, urban environments are doing well, and suburban markets are slow,” Breslau argued. “One of the greatest opportunities for developers and investors over the next decade may very well be reinventing the suburbs.”
With the demand for mixed-use office locations on the rise, New Jersey’s abundant land will continue to attract big business. One prime example cited at the conference by Mitchell Rudin, CEO of Mack-Cali Realty Corporation, was his company’s Harborside complex on the Jersey City Waterfront.
“There are 135,000 workers and residents within walking distance of the property who are prospective patrons of retail and dining establishments,” Rudin said.
Ed Russo, CEO of Russo Development, agreed that projects like Mack-Cali’s Harborside complex have the potential to be game-changers in the area due to the close proximity of New Jersey’s suburbs to Manhattan.
“The demographics in the Northeast Corridor are particularly ripe for development,” said Russo, whose firm is currently focused on multifamily and data center projects. “In addition, this year’s Supreme Court ruling relieving the Council on Affordable Housing of responsibility for affordable housing rules and putting it in the hands of municipalities is opening an enormous opportunity we haven’t seen in years.”
Russo also added that there are numerous projects his company is planning in the northern and central New Jersey areas due to a lack of inventory in New York City locations.
“With the shortage of available space and increased competition, we are finally starting to see some meaningful appreciation in rents, which is long overdue,” Russo commented. “We expect this trend to continue in 2016.”
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
