CAMDEN, NJ—The 2-million-square-foot Gateway Office Park that scuttlebutt says Brandywine has been signed to develop could produce a gusher of state incentives under the state's new incentives programs.
Companies that move to the park at the Campbell Soup headquarters campus would be eligible for 10-year tax credits and reimbursement of up to 40% of project cost. According to projections by state development officials, this could bring rents down to as little as $4- $5 per square foot.
During the long and furious debate over the Economic Opportunity Act of 2013, which went into effect at the end of last year, specific attention was focused on spurring development in southern Jersey and partcularly Camden, the state's poorest city. The thresholds for qualifying for incentives in the city were set at a lower point than anywhere else in the state.
Also, beefed-up incentives were specifically designed to outdo Pennsylvania's Keystone Opportunity Zone program, which has lured various New Jersey companies to move across the border to the Philadelphia area to get local and state tax breaks.
Some brokers are now saying that the EOA carrots under its Grow NJ program are so enticing that companies may be able to put together deals allowing them to operate rent-free in Camden for a decade. While the EOA expires in 2020, the incentive awards are good for ten years.
Dan Close, a broker with Jones Lang LaSalle, recently said qualifying companies are “essentially being paid to locate to downtown Camden,” even if relocating within New Jersey.
Lt. Gov. Kim Guadagno said she envisions Camden as "the next Jersey City." The Gold Coast city, along with Newark, has been the biggest benefiiary of state incentive programs to date. Jersey City is currently in the midst of a development boom.
See previous story below
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CAMDEN, NJ—Brandywine Realty Trust of Radnor, PA has reportedly been selected as the developer of the Gateway Office Park at the headquarters campus of Campbell Soup Co. here.
Campbell Soup has been working on developing the Gateway Office Park, which could amount to approximately two million square feet of space at the Camden, NJ site, since 2007. The report in the Philadelphia Business Journal says that Brandywine would design, build and be responsible for the lease-up of the project that would be constructed in phases at the more than 100-acre site.
Companies that lease space at the Gateway Office Park would be eligible for attractive incentives from the State of New Jersey, including tax credits for up to 10 years and reimbursement for up to 40% of project costs.
Rents on the office space could run in the $4- to $5-a-square-foot range. See story in the Philadelphia Business Journal.
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