Dwight W. Pittenger, president of Pittenger Builders, Neptune, NJ, and 2016 president of the New Jersey Builders Association (Steve Lubetkin Photo/StateBroadcastNews.com. Used by permission)

ATLANTIC CITY, NJ—A more regionally focused approach to zoning and planning for commercial construction is probably the most critical issue facing New Jersey's commercial real estate industry, says incoming New Jersey Builders Association president Dwight Pittenger, president of Neptune, NJ-based Pittenger Builders.

In a wide-ranging exclusive interview with GlobeSt.com during the Atlantic Builders Convention in Atlantic City, Pittenger suggested that the state consider identifying industries that are critical to the state's development objectives, such as pharmaceuticals or technology, and then organize regional planning and zoning processes so that those industries could gain faster approval of new business locations that is currently possible at the municipal level.

Pointing to General Electric's recent announcement that it would move its corporate headquarters from Fairfield, CT, to Boston after more than 40 years in Connecticut, he says it is conceivable that New Jersey-based companies could become similarly frustrated with economic development delays in the Garden State.

“Five thousand jobs are just going to leave Connecticut and go to Boston,” he says. “They've apparently been wrangling with Connecticut for some time, and they just to the point where they said, 'we're leaving.' New Jersey faces some of that. Maybe we are too conservative in accepting change.”

Much like the Meadowlands Regional Commission, which oversees development activity within the Meadowlands, Pittenger says the New Jersey legislature should “determine which industries are key to New Jersey's economy, like pharma, finance, pick whatever you want, and then say, 'ok, if you are in that industry, you do not go to the local town planning board, that's now a statewide interest, a regional interest.'”

“These are your core businesses in New Jersey,” he says. “We are preventing these companies from coming here, from expanding here.”

Zoning and planning standards would not be relaxed under such a regional concept, Pittenger explains, but company applications would be expedited and not subject to the frequent delays plaguing the municipal zoning process.

“We have to recognize that if that industry is the key to New Jersey's cash flow, you'd better start catering to pharma and bioresearch,” he says.

Multifamily builders face expensive uncertainty about the state's affordable housing expectations following the collapse of the Council on Affordable Housing and the state Supreme Court's order last year returning control of affordable housing requirements to the court system. The uncertainty makes it next to impossible for developers to get meaningful site plans prepared, let alone approved, he says.

“We have roughly 60 acres of raw land that I can't design yet,” he says. “With the uncertainties of COAH, I can't tell an engineer what to design. The challenge is, what exactly do you tell your engineer to design for submission to a zoning board? The towns at this point don't know exactly what their requirements are going to be. And you're talking six figures of engineering and architectural renderings. That's a huge sum of money for a guess.”

Pittenger also thinks that building inspections take too long to complete in New Jersey.

“We're fragmented with all these different towns. Building departments are overloaded. I've heard of people waiting six weeks for a plumbing inspection,” he says. “It's not big picture, but it's meat and potatoes. You're trying to run a job, you're trying to move people into a house, and you can't get inspections done on a timely basis.”

The state should consider bringing retired building inspectors back to work to help clear the backlogs, Pittenger suggests. “That's a manageable problem but it's got to be addressed.”

Stranded assets, office buildings that are in desperate need of redevelopment as mixed use facilities, possibly even including a multifamily residential component, also need to be addressed, he says.

“We're not making any more land, so we've got to be somewhat forward-looking as to the reuse of land,” he says. “There'll be push-back because people don't want things to change.”

Pittenger is a fourth-generation builder in a company his great-grandfather started in Asbury Park in 1905. When he was 14, his father, who by that time was running the business, put Pittenger to work with a masonry crew for 25 cents an hour.

He later decided he didn't want to work “with my muscles” his entire career, so he earned a degree in chemistry, to which he added an MBA and law degree before coming back to help run the family company.

Having the practical experience working in the business, coupled with his business and legal background, has enabled him to be the firm's economic forecaster, Pittenger says.

“Effectively, what I do best is forecasting for my company,” he says. “I'm the one who's going to buy land, get it approved, start the process, or shut it down if I see that there are some dark clouds moving in.”

Dwight W. Pittenger, president of Pittenger Builders, Neptune, NJ, and 2016 president of the New Jersey Builders Association (Steve Lubetkin Photo/StateBroadcastNews.com. Used by permission)

ATLANTIC CITY, NJ—A more regionally focused approach to zoning and planning for commercial construction is probably the most critical issue facing New Jersey's commercial real estate industry, says incoming New Jersey Builders Association president Dwight Pittenger, president of Neptune, NJ-based Pittenger Builders.

In a wide-ranging exclusive interview with GlobeSt.com during the Atlantic Builders Convention in Atlantic City, Pittenger suggested that the state consider identifying industries that are critical to the state's development objectives, such as pharmaceuticals or technology, and then organize regional planning and zoning processes so that those industries could gain faster approval of new business locations that is currently possible at the municipal level.

Pointing to General Electric's recent announcement that it would move its corporate headquarters from Fairfield, CT, to Boston after more than 40 years in Connecticut, he says it is conceivable that New Jersey-based companies could become similarly frustrated with economic development delays in the Garden State.

“Five thousand jobs are just going to leave Connecticut and go to Boston,” he says. “They've apparently been wrangling with Connecticut for some time, and they just to the point where they said, 'we're leaving.' New Jersey faces some of that. Maybe we are too conservative in accepting change.”

Much like the Meadowlands Regional Commission, which oversees development activity within the Meadowlands, Pittenger says the New Jersey legislature should “determine which industries are key to New Jersey's economy, like pharma, finance, pick whatever you want, and then say, 'ok, if you are in that industry, you do not go to the local town planning board, that's now a statewide interest, a regional interest.'”

“These are your core businesses in New Jersey,” he says. “We are preventing these companies from coming here, from expanding here.”

Zoning and planning standards would not be relaxed under such a regional concept, Pittenger explains, but company applications would be expedited and not subject to the frequent delays plaguing the municipal zoning process.

“We have to recognize that if that industry is the key to New Jersey's cash flow, you'd better start catering to pharma and bioresearch,” he says.

Multifamily builders face expensive uncertainty about the state's affordable housing expectations following the collapse of the Council on Affordable Housing and the state Supreme Court's order last year returning control of affordable housing requirements to the court system. The uncertainty makes it next to impossible for developers to get meaningful site plans prepared, let alone approved, he says.

“We have roughly 60 acres of raw land that I can't design yet,” he says. “With the uncertainties of COAH, I can't tell an engineer what to design. The challenge is, what exactly do you tell your engineer to design for submission to a zoning board? The towns at this point don't know exactly what their requirements are going to be. And you're talking six figures of engineering and architectural renderings. That's a huge sum of money for a guess.”

Pittenger also thinks that building inspections take too long to complete in New Jersey.

“We're fragmented with all these different towns. Building departments are overloaded. I've heard of people waiting six weeks for a plumbing inspection,” he says. “It's not big picture, but it's meat and potatoes. You're trying to run a job, you're trying to move people into a house, and you can't get inspections done on a timely basis.”

The state should consider bringing retired building inspectors back to work to help clear the backlogs, Pittenger suggests. “That's a manageable problem but it's got to be addressed.”

Stranded assets, office buildings that are in desperate need of redevelopment as mixed use facilities, possibly even including a multifamily residential component, also need to be addressed, he says.

“We're not making any more land, so we've got to be somewhat forward-looking as to the reuse of land,” he says. “There'll be push-back because people don't want things to change.”

Pittenger is a fourth-generation builder in a company his great-grandfather started in Asbury Park in 1905. When he was 14, his father, who by that time was running the business, put Pittenger to work with a masonry crew for 25 cents an hour.

He later decided he didn't want to work “with my muscles” his entire career, so he earned a degree in chemistry, to which he added an MBA and law degree before coming back to help run the family company.

Having the practical experience working in the business, coupled with his business and legal background, has enabled him to be the firm's economic forecaster, Pittenger says.

“Effectively, what I do best is forecasting for my company,” he says. “I'm the one who's going to buy land, get it approved, start the process, or shut it down if I see that there are some dark clouds moving in.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM Digital Member, you’ll receive:

  • Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Steve Lubetkin

Steve Lubetkin is the New Jersey and Philadelphia editor for GlobeSt.com. He is currently filling in covering Chicago and Midwest markets until a new permanent editor is named. He previously filled in covering Atlanta. Steve’s journalism background includes print and broadcast reporting for NJ news organizations. His audio and video work for GlobeSt.com has been honored by the Garden State Journalists Association, and he has also been recognized for video by the New Jersey Chapter of the Society of Professional Journalists. He has produced audio podcasts on CRE topics for the NAR Commercial Division and the CCIM Institute. Steve has also served (from August 2017 to March 2018) as national broadcast news correspondent for CEOReport.com, a news website focused on practical advice for senior executives in small- and medium-sized companies. Steve also reports on-camera and covers conferences for NJSpotlight.com, a public policy news coverage website focused on New Jersey government and industry; and for clients of StateBroadcastNews.com, a division of The Lubetkin Media Companies LLC. Steve has been the computer columnist for the Jewish Community Voice of Southern New Jersey, since 1996. Steve is co-author, with Toronto-based podcasting pioneer Donna Papacosta, of the book, The Business of Podcasting: How to Take Your Podcasting Passion from the Personal to the Professional. You can email Steve at [email protected].