Pennsylvania’s new industrial space development outpaces that of New Jersey by 10 to 1, he notes, and the much-discussed area around exit 8A of the New Jersey Turnpike will in time become a local, not regional hub. It simply costs too much to transport goods on the Turnpike, K notes. The fee from Newark to Exit 8A is $60. “Interstate 95 is too congested,” Klatskin said. “And the road from Harrisburg to Allentown is free.”

However, high quality multifamily continues to attract development, said Eric Witmondt, CEO of Chatham, NJ-based Woodmont Properties, with municipalities now very positive on the sector.

“The multifamily apartment market is the bright spot in the real estate industry,” Witmondt Said. “There’s really been a flight to quality.”

With steady income greatly appealing to investors right now, cap rates on these buildings have sunk to just 3.5% in Lower Manhattan, and are below 5% in New Jersey, Witmondt said. But add extra uses, and project becomes more problematic, as the office market remains challenging. “We haven’t seen a great return of downtown mixed-use projects,” Witmondt said. “People just don’t have the wherewithal to start a project. We’re not seeing the rebirth we’d like to see.”

Retail in downtowns farther from the Gold Coast continues to struggle, he added. Office development and investment also is problematic.

“The focus now is to focus on liquidity and the balance sheet,” said Jerry Sweeney, CEO of Brandywine Realty Trust, Radnor, PA, adding that Brandywine has been a net seller of properties. “From an investment standpoint, we’re continuing to move up the quality ladder.”

Brandywine’s properties boast an 86% leased rate, the lowest in the company’s history, he said, with New Jersey particularly challenging at 75% leased. “The suburban office market is challenging, even in the best of markets,” Sweeney said.

Despite the state’s efforts to streamline the development process, entitlements still take time as municipalities and multiple agencies come in to play. However, changes are continuing, said DCA Commissioner Lori Grifa.

One change is amending the Uniform Construction Code to allow minor work to begin with notice, but before a permit is issued. An inspection will follow within 30 days of receipt of the notice, Grifa said. The move will allow retail and office tenants to move into spaces more quickly.

“You have a strong and mobilizing force against this change,” Grifa warned. “Local code enforcement officials are marshaling their forces against this change.” That pro-business attitude is helping the state, the developers said. There is no reason why New Jersey can’t be as competitive as Texas,” Sweeney said. “There has to be political will.”