- New Jersey State awards tax credits to Teva Pharmaceuticals, Integra LifeSciences, and E-Trade in exchange for bringing new jobs and moving to New Jersey
- Surge in leasing activity with more than 2,000,000 SF of commitments
- Around 80% of existing office properties were built in the 1980’s, driving the need for higher quality office space to be constructed or renovated
One of the nation’s largest office markets, Northern New Jersey stands to benefit from continued economic growth by attracting large corporations – often incentivizing them with huge tax incentives.
- In recent news reported by NJ Advance Media, Teva Pharmaceuticals, one of the 15 largest pharmaceutical companies in the world, will be moving its headquarters from Pennsylvania to Parsippany, NJ. Teva Pharmaceuticals plans to occupy a 360,000 square foot office space and bring over 800 new jobs while retaining 232 New Jersey employees, in exchange for $40 million in tax credits provided by the state.
- Medical-device maker Integra LifeSciences has also secured $1.78 million annually over 10 years in tax credits as an incentive to remain in New Jersey, NJBiz reports. This incentive will follow their relocation to a 167,000 square foot space as well as the addition of 80 new jobs.
- NJBiz reports E-Trade, a financial services company, was awarded $2 million annually over 10 years in tax credits to bring 251 customer service jobs over from the Philippines to New Jersey.
The state continues to seek out large employers to increase employment and job growth – and to much effect: The United States Census recorded a 2.2% employment increase in New Jersey between 2015 to 2016, while unemployment rates continue to fall through 2018.
Newmark Knight Frank’s Northern New Jersey Office report notes that there was a large surge in leasing activity, with more than 2,000,000 square-feet of commitments in Q2 2018. However, even with this increase, availability remains unchanged at 23.2%.
Despite this, demand for high quality office space in New Jersey has only increased in the past years. The Rutgers Regional Report: Reinventing the New Jersey Economy concludes that the outdated office-based suburban growth corridor lacks the needs of today’s office space consumers. With 80% of New Jersey’s existing office spaces being built in the 1980’s, the need for higher quality and modern properties is constantly growing. With that said, the statistics never tell the full story – and it’s imperative that an investor gains a deep understanding of the historical landscape of any region to gain the competitive edge in today’s office market.
Sources: NJBiz, NJ Advance Media, NGKF, Rutgers Regional Report
All information in this article is derived from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.