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ESG closes industrial deals.

The Edward S. Gordon Company reports that it has closed in excess of 600,000 square feet of industrial sales and leases in the first quarter of the year.

According to ESG/NJ Managing Director Robert M. Singer, this is certainly a strong indication that the industrial market, which was not as overbuilt as the office sector, is responding to reports of an improving economy.

Of particular significance, Singer adds, is the fact that two of the major transactions closed by his firm were with manufacturers. One was the leasing of 360,000 square feet for 11 years to U.S.A. Detergents, which is moving from Edison to North Brunswick. The Gordon firm represented the owner, Murray Construction. The other transaction was the sale of 132,000 square feet in East Rutherford. Here Diamond Industries of Lyndhurst bought the building from Diversey Corporation, a division of Molson Industries Canada. ESGINJ represented both parties in that transaction.

In spite of all projections that New Jersey will continue to experience an outflow of low tech manufacturing as a result of high taxes and a stringent regulatory environment, the state still offers proximity to a huge market and availability of labor. Recognizing this and the importance of maintaining jobs, the New Jersey Department of Commerce and Economic Development under the leadership of its director, Barbara McConnell, was able to expedite the transactions. This involved the coordination of various state agencies involved in the regulatory process, economic development authority guarantees allowing for lower cost bond financing and the offer of subsidized job training assistance. The end result was that these transactions were completed meeting the timing goals of all parties and keeping hundreds of jobs in the state of New Jersey.

Singer is quick to point out, however, this does not mean low tech manufacturers are flocking to New Jersey. "Those days are gone," he said. "Although, this is a strong indication that the state can maintain a high percentage of its existing manufacturing base as long as our state government effectively deals with the negative issues facing manufacturing."

Singer explains that the strength in the industrial real estate market will accelerate in response to an increase in economic activity.
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Title Annotation:Edward S. Gordon Company Inc. reports on sales and leasing of industrial space in New Jersey
Publication:Real Estate Weekly
Date:May 12, 1993
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