In what appears to be the most dramatic shift in New Jersey’s demographics since World War II, brokers, developers and economists are reporting that the brakes have come on for population growth in the Garden State’s suburban areas. What’s even more surprising is that population in the urban centers of the state has surpassed that of the traditional bedroom communities, making the urban core a new hotbed of development activity across many sectors.
Leasing is well underway at several luxury multifamily developments on the New Jersey waterfront in Hoboken, Jersey City, Bayonne and Harrison, and others have broken ground recently.
In October, global print and digital publisher John A. Wiley & Sons Inc. signed a 15-year lease at 111 River St. in Hoboken. The 386,407-square-foot office deal, brokered by Daniel Foley, senior managing director at Savills Studley, was the largest transaction in New Jersey so far in 2014.
“Without question, there is an ongoing trend to migrate from the suburban office buildings, many of which are becoming less and less inviting to corporations because of the new densification modeling that most companies are considering when looking for a new potential office facility,” says Foley. “The old model of four parking spots per thousand and not necessarily great access to the public transportation network makes it very difficult for a lot of corporations to implement an ongoing strategy in these buildings.”Retreat to the Urban Core
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National Office Sector Report (Q3 2014)