On June 30, 2021, David Wolfe, property tax appeal attorney, joined as a panelist at Bisnow’s Digital Summit: Development, Investment and Industry Growth to discuss the future of the real estate office market in the New Jersey waterfront area. Panelists included Michael Goldstein, Managing Director of KABR, Mark Ravesloot, Vice-Chairman of CBRE’s Midtown Manhattan office, and Edward Guitinan, Senior Vice President-leasing of Mack-Cali.
Previously, the COVID-19 pandemic halted the office market in the Jersey City/Hoboken area because of the uncertainty property owners felt making decisions. Rather than downsizing spaces or terminating leases panelists noticed owners looking for more flexibility with their properties such as yearly lease extensions.
New Jersey incentives creating advantageous opportunities on the waterfront
As we transition into the recovery stages of the pandemic, regional experts have seen a sense of urgency to return back to the office before the start of the school year. It is expected that about 30% of the workforce will continue with a hybrid weekly work schedule however most tenants are anticipating the local office amenities and collaborative work missed throughout the pandemic.
Wolfe introduced the interest the New Jersey waterfront has on Manhattan offices and the surrounding metropolitan area with the potential savings the Emerge Program offers.
“It’s exciting to be able to talk to potential tenants that there is now an incentive program in New Jersey that will help pay for your cost to relocate to move and subsidize your rent in New Jersey,” says Wolfe.
The discussion then addressed the growing interest of life science companies repurposing office space in the waterfront into laboratories. Given the current population of the life science industry in New Jersey the waterfront is a suitable place to relocate however buyers should be aware of potential risks.
“… It’s a huge investment to go from a standard office building and turn it into one of these buildings and to then be able to lease it out. But there is definitely an appetite for investors to do it and there are investors currently doing it and the more these projects succeed the more you will see others looking to see if they too can continue this business plan,” Wolfe advises.
About Skoloff & Wolfe
The attorney’s at Skoloff & Wolfe have a successful track record in assisting commercial property owners with property tax savings on the New Jersey waterfront. If you’re interested in learning more about our commercial property due diligence services or property tax appeals call 973.992.0900 today.