Pfizer plans to sell all of its approximately 500,000 square feet at Giralda Farms.

Zoetis' move from one borough to another within Morris County is the type of short-distance shuffle that has led to some past questioning of whether state business retention programs are working as effectively as possible. Legislators, Economic Development Authority officials, and industry leaders have been discussing ways to sharpen the focus of tax-incentive programs to maximize their value, according to NAIOP's Michael McGuinness.

A full-scale review of the Urban Transit Hub and Grow New Jersey tax-credits is likely to be undertaken.

Neverthless, Gov. Chris Christie's administration is continuing its battle to keep large pharmaceutical companies in the state once known as “the nation's medicine chest.”

Zoetis will receive a $14 million Business Employment Incentive grant approved last year when Pfizer announced the spin-off plan. It will move to its new office by the end of June, according to spokesperson,Elinore White.

Pfizer raised $2.2 billion with an initial public offering on Feb. 1 for Zoetis shares. That made it the largest IPO to occur in the U.S. since the $16 billion IPO for Facebook last spring.

Meanwhile, Madison will feel the loss of its Number One source of tax revenue. Pfizer paid $1.39 million to the borough last year. .

The drug maker plans to move its Consumer Health Division to another building in the area, and relocate other employees to its Peapack-Gladstone facility.