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NJ Gold Coast keeping head above water.

NJ Gold Coast keeping head above water

There is no denying that the real estate downturn in New York City has significantly affected the New Jersey Gold Coast. The leasing slowdown here parallels that of other areas in New York's metro region. Yet despite the slump, Jersey City has maintained a presence as an appealing and viable location for major businesses. The reason is that the bottom line is always a crucial factor in space decisions. Prime properties in Jersey City continue to offer numerous advantages.

During the recession, several industries have pioneered a migration across the Hudson River, where they can benefit from prime office space, excellent transportation, and significant financial savings from lower rentals, tax abatements and other cost saving measures available to New Jersey businesses.

Companies in the shipping and securities industries in particular have changed locales, one-by-one signing leases at Newport Financial Center and other Class A buildings along the water-front. With the tremendous communication capabilities offered by modern science, these businesses have found location to be secondary to building infrastructure and technology.

In addition to these industries, "foreign," or out-of-state banks, will likely begin to consider properties in New Jersey for some of their operations.

After a series of financial district power outages, Newport Financial Center received numerous phone calls from banks which wanted to open offices in the building. Yet legally, they were not permitted to conduct business in New Jersey without reincorporating within the state. The process was particularly laborious for international institutions.

Newport Financial Center initiated legislation in the House of Representatives and the Senate that has successfully amended the New Jersey Foreign Banking Act. The Act now allows out-ofstate banks to easily set up back office operations and disaster recovery centers in New Jersey. It provides an excellent example of public and private sectors working successfully together.

Ron Bowman Director of Real Estate Newport Financial Center
COPYRIGHT 1991 Hagedorn Publication
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Copyright 1991, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Title Annotation:Mid-Year Review & Forecast Section I
Author:Bowman, Ron
Publication:Real Estate Weekly
Date:Jun 26, 1991
Words:315
Previous Article:Office Network changes name to reflect global approach.
Next Article:Vacancy less than 10% at World Trade Ctr.
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