Development Seen as Crucial to NJ Growth

NEWARK-New Jersey is “at a very important point in its development”–that was the message delivered here Wednesday by George Martin, vice chairman of Studley, at the annual real estate market forecast event of the Newark Regional Business Partnership. Citing everything from an aging and stressed infrastructure to the state’s fiscal problems, “New Jersey would become a less desirable place to do business if we don’t get things under control,” Martin told attendees.

Citing current real estate market statistics, especially the office sector, he cautioned that one has to look beyond the general numbers at specific markets. Noting that the vacancy rate in Newark, for example, is just 5.5%, while it’s in the 27% to 28% range in the Princeton market, “which is typically overbuilt. The statistics, therefore, are not always meaningful.” But marketwide, “the state needs to continue to be attractive for such sectors as financial services, which create a lot of jobs and fill space. We’re not doing enough–we need to do more.” That said, he expressed confidence that, “Gov. [Jon] Corzine, coming from the business sector, understands.”

In the larger sense, “New York very much drives what happens here,” Martin said. In that regard, the Garden State stacks up pretty well. In terms of comparables, space in 50- to 60-year-old buildings in Lower Manhattan is going for $45 per sf, Martin said, while space in new or nearly new buildings in Jersey City, just across the river, is going for $30 per sf.