Real Estate Journal — Economic Development — January 25 - February 7, 2019 — 5C


M id A tlantic

E conomic D evelopment

By Jeffrey J. Garibaldi Jr., Garibaldi Group/CORFAC International NJ Office market targets growing innovation economy

T argeting the “innova- tion economy” will be a major focus in 2019.

homes for young innovation economy companies with big ambitions.

shape the suburbs with the style and the amenities that they have grown accustomed

Outside of the almighty dol- lar, labor is the key driving factor for decision makers at companies countrywide. With the national unemployment rate at 3.9 percent and the state unemployment rate at 4.3 percent, labor will remain a central focus of the market. Towns that show they can offer a live, work and play atmosphere will be rewarded with an influx of young fami- lies, young professionals and young businesses. Developers who put the proper investment into large vacant office buildings (NJ

has enough of them), will con- tinue to be rewarded. Recent adaptive reuse projects, such as Bell Works (Holmdel), ON3 (Nutley) and Ironside (Newark) have provided the blueprint. Watch for commu- nity boards to become more open to mixed-use projects, and local administrations proactively seek the help and advice of local real profes- sionals and developers. Jeffrey J. Garibaldi Jr., Director of Support Ser- vices at the Garibaldi Group/CORFAC Interna- tional. 

It is a top priority of the Murphy administra- tion and its constituents account for roughly 20 percent of office leas- ing in New

Watch for community boards to become more open to mixed-use projects, and local administrations proactively seek the help and advice of local real professionals and developers.

Jeffrey Garibaldi Jr.

The momentum, albeit gradual, of millennials re- turning to the suburbs will continue to increase. As they return, they will slowly re-

to. That process will present new opportunities for local brokers, and will be an area where bigger shops get over- looked for a native touch.

Jersey. The locution includes businesses in the life sci- ences, information and high tech, clean energy, advanced manufacturing, advanced transportation, logistics, fi- nance and insurance, food and beverage, and film and digital media industries, ac- cording to the NJEDA’s CEO, Tim Sullivan. Sullivan says the adminis- tration is looking to capture “the economic multiplier ef- fects of those industries.” He continued, saying, “Up to five additional jobs are created by each job in the innovation economy. We have proposed smarter, more targeted in- centives and programs to bol- ster high-wage, high-growth sectors that bring money into the state and support a sustainable living for our residents.” Many of the largest office tenants in the state can be attributed to the innovation economy, and that trend will continue thanks to the state’s rich history of supporting these industries with a well- educated labor pool. The rise of New York City rents look to continue their upward trend with the arrival of Amazon, and New Jersey has a real chance to position itself as a resource that is able to accommodate the spillover. As you look through the key deals completed in 2018, you continue to see the impact these industries had on the market with Teva Phar- maceuticals taking 345,000 s/f in Parsippany, Jet.com now occupying 200,000 s/f in Hoboken, E-Trade with 132,000 s/f in Jersey City and Integra Life Sciences taking 167,000 square feet in Plains- boro. The leasing highlights of 2019 will look similar. On a more micro level, look for local municipalities – es- pecially along the transit line or with colleges nearby – to position themselves as ideal

Wherever or whatever, we make it happen. Your commercial real estate transaction demands innovative expertise and principal involvement. Our network of 70 global offices is exceptionally experienced and intentionally independent. And the Mars site? We’re working on it. Let’s talk today.


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