The state of the market is now prompting Lefrak to build Newport Office Center VII, a 1.1 million-sf, 32-story tower slated to be under construction next month. The projected timeline has completion scheduled for June 2002. It will also finish up Lefrak's first phase of office construction at Newport with a total of five million sf of space. Altogether, the $10 billion Newport project covers 600 acres with office, retail and residential uses.

NOC VII is being built on spec, just like the other four buildings Lefrak developed here in the last three years. But it likely won't remain that way for long. One signal: Lefrak has leased more than three million sf at Newport in just the last 24 months. The market has given no indication of slackening demand.

"Building on spec takes confidence," admits Lefrak Organization president Richard LeFrak, son of legendary developer Sam LeFrak. The elder LeFrak is credited with starting the whole development phenomenon on Jersey City's waterfront.