NEWARK-The first quarter of this year has seen “a dramatic resurgence” in Newark’s office market, particularly in the city’s central business district, as the state’s incentives, including its Transit Hub Tax Credit, encourage relocations to the Brick City, according to The Berger Organization.
New leases in the 5,000-square foot to 8,000-square foot range, in particular, have been a great source of activity, as companies relocate from Manhattan and other New York City boroughs, according to Miles Berger, chairman and CEO of Newark-based Berger, in a commentary.
“The old real estate axiom, ‘location, location, location’ is certainly borne out by Newark,” Berger notes. “The city's key location on the East Coast corridor is further buttressed by its transportation infrastructure, including key hubs Newark Liberty International Airport and Newark Penn Station, and that is paving the way for the current rebound in the city's office market and its business climate in general.”
Law firms are relocating to the city to be closer to clients, city courts, law schools and transportation, he writes, with non-profit organizations also taking space in the city. The Port Authority of New York and New Jersey is relocating Pacific Group Holdings, owner of Bonita Bananas, to Berger’s Military Park Building in the city from Staten Island by the Port Authority of New York and New Jersey for docking purposes.
Development, too, is picking up, he writes. “While new development in general, post-recession, has been sparse everywhere, some important non-office developments in Newark are expected to be catalysts for new office, retail and other development in the Broad Street area. Both are hotel projects: Courtyard by Marriott will open a new hotel—the first new hotel in downtown Newark in 39 years—right outside the Prudential Center Arena, which itself has been a major catalyst for the city. And Indigo Hotel has proposed a boutique 100-room property just two blocks away,” Berger says.
“The government of the City of Newark has been instrumental in addressing quality of life issues that have made Newark more welcoming as a place to do business,” Berger notes. “The rebound in the office market bears that out.”
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