As seen in
September 15, 2001
REAL ESTATE RUSH TO NEW JERSEY
by LOIS WEISS
New Jersey is being assaulted by suddenly
space hungry companies, dislocated from their Downtown offices.
Others are sniffing around Westchester, Connecticut and, to
a lesser extent, Long Island. For the moment, Brooklyn has
been dissed.
The grab for 22 million square feet of out-of-town space identified
by Grubb & Ellis also has city officials worrying that
Downtown will be abandoned for the nurturing, safe-looking
and sanitarium-like quiet on some of the corporate campuses.
James S. Meiskin, president of the
tenant relocation firm Plymouth Partners, thinks companies
will leave - perhaps for the short term - and then never look
back.
That's why Sen. Chuck Schumer is meeting with the Real Estate
Board of New York on Monday to drum up a safe-city, safe skies
message to keep companies from abandoning Downtown forever.
Meanwhile, it's primarily Jersey's big new office towers that
are hooking the fastest tenants.
"We got calls for Newport," said LeFrak Organization Chairman
Samuel LeFrak about his 600-acre project on the Jersey shoreline
that already is home to several major corporations. "They
are all desperate." LeFrak is in the process of constructing
more towers, but current ones are all spoken for.
Seena Stein, president of the Jersey-based Newmark Partners,
said there are lines forming for the remaining 2 million square
feet of Jersey's vacant Class A space at prices that
come in under $30 a foot, a far cry from Manhattan's $75 tab
for new construction.
"When this quarter ends, it will be mind boggling," Stein
said of the rush from carnage.
American Express is glomming several large hunks, sources
said, including both sublease and direct space. These may
include a sublease from Lucent for 317,040 square feet at
5 Woodhollow Drive in Parsippany, and more at Ten Exchange
Place, which had about 50,000 square feet available.
Another 150,000 square feet in Short Hills at 103 JFK Parkway,
owned by Reckson, was also being courted by American Express
and others, while a Datek sublease at the Hartz-owned 70 Hudson
in Jersey City for 150,000 square feet that already has its
raised floors installed was presumed to be won by Lehman Bros.
leaving Solomon Smith Barney in the lurch.
Henegan Construction was running crews 24 hours a day to get
a trading company wired into 400,000 square feet in New Jersey
by the time the opening bell rings on Monday morning.
"It's time to start the healing," Maureen Henegan said.
In Westchester, there are a number of buildings that are ready
to go," said John McCarthy of McCarthy-O'Callaghan Company.

|