NJ Open For Business?

From the Record:

More New York businesses making move to North Jersey

Gross Printing had been doing business in a Sunset Park, Brooklyn, industrial park for several years when co-owner Samson Gross noticed that the company’s landlord was bringing in hipper tenants — breweries, artists and gourmet food companies.

Then, Gross said, the landlord told him his lease would not be renewed. The landlord wanted tenants that could pay $35 a square foot; Gross was paying about $7. So the company began looking for new space, finding its way last year to Clifton, where Gross Printing now leases a 32,000-square-foot building on Brighton Road. The place costs a little more than Gross Printing’s old quarters at the Industry City complex in Brooklyn, but much less than the company would have paid if it had stayed in the city. And Gross, who prints brochures, magazines and packaging, is happier with the location.

“It’s just a nicer place,” said Gross, who owns the company with his wife, Hindy. “The infrastructure in this part of New Jersey is by far better for my type of business than anything available in New York City. New York City is impossible. Customers can’t park their cars for a minute without getting a ticket. To drive five blocks can take half an hour. Frankly, I don’t know how I did it for so long.”

The path of corporate exodus from New York City to New Jersey is well-worn, but real estate brokers and others say that the pace has quickened recently. Companies that need industrial or warehouse space are getting priced out of New York City and its boroughs — especially Brooklyn — as developers scoop up industrial space for new uses.

“Buildings there are being redeveloped and repositioned, whether it’s for residential or retail,” said Tom Vetter, a broker specializing in the Meadowlands with NAI Hanson in Hackensack.

And the trendier Brooklyn and the other boroughs get, the harder it is for industrial users to afford to stay there.

“Companies aren’t just coming over here because of cost. You’ve got some other reasons: proximity to the port, proximity to New York City, transportation networks, real estate expenses,” said Blake Chroman, senior vice president of Sitex, which owns more than 2 million square feet of warehouse space in North Jersey.

The migration from New York has helped push New Jersey’s industrial vacancy rates to their lowest point in 15 years, according to Cushman & Wakefield. The real estate firm said the industrial vacancy rate was 6.4 percent statewide in the fourth quarter of last year, down from 8.2 percent a year earlier. In Bergen County, the vacancy rate was 7.5 percent, and in Passaic, 5.7 percent. By comparison, the office vacancy rare has long hovered in the 20 percent range.

Among the companies that have moved operations to New Jersey from the five boroughs are Goffa International of East Rutherford, a stuffed-animal importer formerly located in Brooklyn, and M&J Innovation of Norwood, a company that provides installation and other services for trade shows. M&J Innovation was previously in the Bronx.

In addition, the food company Blue Apron recently moved its distribution center from Williamsburg, Brooklyn, to Jersey City. And Streit’s Matzoh sold its 90-year-old building on the Lower East Side in Manhattan and moved some operations to a site it already owned in Moonachie last year. However, Streit’s plans to consolidate operations in the Rockland County, N.Y., town of Orangeburg, according to Alan Adler, director of operations.

Moving across the Hudson River carries some risks. Clients don’t always follow. And workers who are used to commuting by public transportation sometimes decide they can’t face the trip to a suburban workplace.

This entry was posted in Demographics, Economics, Employment, New Jersey Real Estate. Bookmark the permalink.

54 Responses to NJ Open For Business?

  1. Mike says:

    Good Morning New Jersey

  2. chicagofinance says:

    I forget….that is the Mayor of Ithaca, yes?

    Splat What Was He Thinking says:
    February 29, 2016 at 7:15 am
    Happy Birthday, Bob Mugabe.

  3. Zimbabwe is basically the PRI without smack.

  4. I’m surprised Ithaca hasn’t devised its own currency and hyperinflated it.

  5. Libturd questioning the gender of Hillary's Cankle fluid. says:

    Gross Printing might like the infrastructure, but wait until it experiences NJ’s regulations.

  6. Grim says:

    NYC would have been just as bad.

  7. Juice Box says:

    re: Brooklyn – “Customers can’t park their cars for a minute without getting a ticket. To drive five blocks can take half an hour. Frankly, I don’t know how I did it for so long.”

    All the hipsters have drivers like De Niro in The Intern.

  8. Libturd questioning the gender of Hillary's Cankle fluid. says:

    “NYC would have been just as bad.”

    So things have changed in the last decade. NY has caught up to NJ?

  9. The Great Pumpkin says:

    Nj will be fine. Regulations suck, but not many better locations to do business based on all the other factors.

    ““Companies aren’t just coming over here because of cost. You’ve got some other reasons: proximity to the port, proximity to New York City, transportation networks, real estate expenses,” said Blake Chroman, senior vice president of Sitex, which owns more than 2 million square feet of warehouse space in North Jersey.”

  10. Grim says:

    Clifton has been good to us so far, but with the Roche issue they can’t Afford to be hard asses when it comes to new business.

  11. Libturd questioning the gender of Hillary's Cankle fluid. says:

    Does Roche have a buyer? I expect another Clifton Commons to spring up, though, are there any chain stores left that don’t already have a Clifton location? We have a friend who is still employed there, believe it or not. They keep extending her end date. I think there’s a bit of cleanup due. Someone must have spilled a container of white out.

  12. homeboken says:

    Real Estate Question for the board –

    2 identical (for theory purposes) homes. 1 is 5 Bedroom 4 bath, the other is 4 bedroom 3 bath.

    All else equal:
    How much is the additional bedroom worth?
    How much is the additional bathroom worth?

  13. Grim says:

    The marginal value changes, going from 3 to 4 beds is usually more of a significant increase than 4 to 5. On bathrooms – full master adds more than just another bath, but going from 3-4? Eh. Basement baths usually don’t calc the same. I’d guess 15-20% for both.

  14. Grim says:

    That 15-20 is based on square footage increasing, not squeezing the additional rooms in the same size house.

  15. homeboken says:

    16 – Grim, thank you, the extra room comes with extra space. I am trying to decipher two comps given to me that have the extra bedroom and bath vs a 4br, 3.5 bath I am considering and your 15% differntial fits pretty damn close to where I am contemplating an offer. The 20% would be great but I think factoring that would be a non-starter for the seller. Appreciate the thoughtful comments and so quickly.

  16. Ragnar says:

    The arrangement of bathrooms also matter.
    Ensuite bathrooms are worth more in premium houses than bathrooms in hallways.
    Once thought of buying a 5 bed, 3.5bath house, but only the master bedroom had an ensuite bath, leaving the other 4 br’s to fight it out. Not nice for guests.

  17. Libturd questioning the gender of Hillary's Cankle fluid. says:

    I think those who found something wrong with the Trump go home thing are really stretching and need to find a better hobby.

  18. Ragnar says:

    Gator,
    They forgot Abe because they were obsessed with race, convincing themselves that if they hired enough black comedians to help them laugh at themselves, their white liberal guilt can be cleansed away.

  19. Ragnar says:

    Libturd,
    That was just Trump giving Christie “the dirty Sanchez” to establish his alpha male dominance over him.
    Christie thinks his long 6 past years of searching for his next job is finally coming to its fruition on the Trump sausage and gravy train. I hope it turns to dust in his mouth.

  20. Libturd questioning the gender of Hillary's Cankle fluid. says:

    Yeah…I watched the Oscars sort of in the background of doing something else. What a placating disaster. I was hoping that Chris Rock was going to say that Jews were over represented, which they were. But I guess he wants an invite back. To be honest with you, Rock was the perfect host. He’s probably the most accessible black comedian to white people available today.

  21. Libturd questioning the gender of Hillary's Cankle fluid. says:

    Christie will be fine. He’ll get a job on some corporate boards and we’ll never hear from him again. Maybe he’ll fill in Cankles open position from the Walmart board?

  22. Juice Box says:

    Interesting way to keep Workers Comp costs down. We now use CorVel for workplace injuries. If somebody gets hurt at work their manager is supposed to dial CorVel get a nurse on the line then hand the phone to the worker and leave the room so the CorVel nurse can recommend treatment.

    Options are
    1) Self treatment
    2) Tele medicine
    3) Medical clinic visit
    4) Emergency room visit

    I assume they are pushing for option 1 and 2.

  23. Comrade Nom Deplume, Newspeak Editor says:

    It occurred to me just now why I find The Donald so infuriating. Really, I just had an epiphany. It is because he argues like a leftist.

    He will twist facts, fabricate facts, and shout down anyone who contradicts him, in the same way as a leftist. This is why many on the right find him so infuriating even if they can’t articulate why. And this is also why so many on the left can’t stand him: the left never likes it when you use their style of argument against them.

  24. Comrade Nom Deplume, Newspeak Editor says:

    [22] rags

    If they do enough diversity engineering, with any luck they can make the Academy Awards as relevant as the Miss America contest.

    To me, the only purpose that the Academy Awards, or other award shows of that ilk, serve is to show me who the low information voters are.

  25. Comrade Nom Deplume, Newspeak Editor says:

    Good lede. Hope NJ continues to poach it from NYC

  26. NotJuicy Juicer says:

    Juice, why go for all that trouble when you can do what every big store chain (WalMart/Target) does. Bully, the employee to punch out and take the day off, then erase all the security video cameras that caught the act and up to the employee even in the building that day. Cut his hours so will start looking for another job somewhere. And if any claims, they go ” what? , we have nothing!, nobody saw anything!.

  27. Comrade Nom Deplume, Newspeak Editor says:

    [26] juice

    Thats the future under Obamacare or single payer.

  28. Comrade Nom Deplume, Newspeak Editor says:

    [18] Christie

    Part of me thinks that this is a set up on The Donald’s part: There will come a moment in a debate against Hillary Clinton when a moderator, will be a journalist, will ask a “gotcha” question and Donald will say “there you go again”, and proceed to lambaste the moderator with commentary on how Americans can’t stand that sort of gotcha journalism. He will completely blow off the question but the circle back to say that he had to put that out there and will ask to have the question again. The moderator will be so shaken that he will try to reframe the question, and do so badly, or will re-ask the same question and this time will get an answer but the damage to the moderator (and Clinyon) will have been done.

    It will be an epic moment in that debate, and I guarantee you that it will happen.

  29. nwnj3 says:

    Right out of the liberal playbook, if you can’t meet the standard, then lower the standard. How is that common core coming along?

    http://www.nj.com/mercer/index.ssf/2016/02/nj_police_ignored_applicants_criminal_backgrounds.html

  30. LTFT lurker says:

    NJT, grim, and others that seem very handy…

    Have you guys ever experienced a flammable vapor sensor “lock-out” on your hot water heater? (I have an AO Smith ProMax natural gas). It wouldn’t let me do the manual reset procedure as the indicator lights signifying FV came back on immediately. I then unplugged it and removed the sensor placing it outside for over 4hrs, reinstalled but upon restoring power the same indicator lights came on immediately and again I couldn’t do the manual reset. I should mention there is zero smell of anything in there and no paint of other stuff stored inside. Just a furnace, elec panel, and hw heater. Windowless room but I usually leave the door open.

    Any thoughts would be appreciated

  31. D-FENS says:

    https://twitter.com/mark_j_perry/status/704392202781376513
    In 2016, we’re living in perhaps the 1st truly free oil market we have seen since pioneering days of the industry

  32. walking bye says:

    Lurker did you do any painting which would have locked out the sensor?
    google Flammable Vapors Sensed (FVS) Reset Procedure for your AO Smith.

  33. Libturd questioning the gender of Hillary's Cankle fluid. says:

    Mike. Thanks for the pension update. It was kind of what I expected. The teachers are going to be livid.

  34. LTFT lurker says:

    Waking bye,
    Thanks for the reply. Nope, no painting recently. Last time there was painting was almost two years ago (not that room, and house was ventilated) and never had a problem with the water heater. Appreciate the Google recommendation; that’s what I found and tried (referring to the “manual reset” I was unsuccessful with previously).

    I think I have to try replacing the sensor, and if that doesn’t work I don’t know what else to try before calling a plumber.

  35. walking bye says:

    I hate to say this I had an AO Smith back in 2005. The pilot went out constantly. Always the same story from them your laundry room is dusty, restricting air flow. Then I started getting carbon monoxide issues with the heater on cool mornings in the summer. I finally tossed it and installed a Rheem and have had no problems since.

  36. LTFT lurker says:

    Thanks again. So a Rheem from Home Depot is reliable? Appreciate your input.

  37. nwnj3 says:

    We just bought an HD Rheem last month. I can’t vouch for the reliability yet, but will warn against the upsell if you have their installer do the job(some outfit from Edison).

    I flat out told the guy to leave unless he removed all the bogus add-ons(e.g. 4″ vent is the updated code, that’s 200 to replace, etc.), typical fear mongering crap. In the end I okay’d paying $90 for a $3 valve since the old local cold water shutoff was rusted open.

  38. Libturd says:

    Water heaters…There are only 5 manufactures. Rheem and GE are the same as is American Water and Whirpool (and I think Sears). AO manufactures their own, but they are crappy. Most of the other majors are good. I just replaced a 28 year old Rheem in my main home. Was still working perfectly, but knew I was pushing it and I just finished my basement/mancave. Went with American.

  39. Libturd says:

    I hate Home Depot installers. A plumber should give you a flat rate install that’s pretty cheap for a water heater.

  40. Screw the Oscars. Watched the delayed broadcast of Barca-Sevilla. Messi’s free kick was beyond filthy.

  41. Essex says:

    Off-Topic but i just upgraded my car stereo. heaven

  42. Libturd says:

    Nice. I miss that in my Mazda 6 which has a really decent stock stereo (11 speakers, etc), but still no power and shite speakers compared to my upgrades in my old Civic hatchback. The moment you hook up that amp and get even basic Boston Acoustics or Polks, the sound quality jumps like five fold. So what head did you get and which speakers? I liked both Pioneer and Alpine. Also had Blaupunkt (buttons broke), and HK (CD player broke).

  43. grim says:

    Alpine or Nakamichi

  44. relo says:

    Heard the phrase “Gender Confirming Surgery” flipping through the channels yesterday. Hadn’t heard that one previously.

  45. walking bye says:

    I have been happy with the rheem. I installed it myself went with a simple water heater. Pilot hasn’t turned off once in 6 years.

    The problem with the AO model was that it tried to be high efficiency without a powered vent. To achieve this it would slow down the exhaust through some sort of spiral in the heater but it was to slow to overcome back draft from the chimney. The thinking being the longer the exhaust stays in the water heater the more heat is extracted vs going up your chimney. For the few bucks it saved doing this it could have killed us.

  46. walking bye says:

    Nakamichi? are they still around with head units? or are you buying direct from Japan

  47. Essex says:

    48/49. went with an Alpine CDE-W265BT double din head unit. JBL gx series speakers with best part is that i was abke to use the factory amp and Subwoofer.

    the sound is great and the bluetooth works like a charm.

  48. GOP'sbroken (the good one) says:

    @marketwatch

    Opinion: Ideologues have ruined America’s economy

    Published: Mar 1, 2016 7:38 a.m.

    It is almost impossible to assess the progress of the United States economy over the past four decades without feeling disappointed. From the perspective of the typical American, nearly one-third of the country’s productive potential has been thrown away on spending that adds nothing to real wealth or was destroyed by the 2008 financial crisis.

    Since the mid-1970s, the U.S. has ramped up spending on health-care administration by about 4% of gross domestic product and increased expenditures on overtreatment by about 2% of GDP.

    Countries like Canada, the United Kingdom, and France have not followed suit, and yet they do just as well — if not better — at ensuring that their citizens stay healthy.

    Meanwhile, over the same period, the U.S. has redirected spending away from education, public infrastructure, and manufacturing toward providing incentives for the rich — mostly in the form of tax cuts.

    The U.S. spends 10% more than it used to on making it easier for the rich to accumulate wealth, but it has cut public investment in physical and human capital by roughly 4% of GDP, compared to what would have been expected if spending patterns had followed historic trends.

    Forty years ago, for example, the U.S. spent roughly 4% of its GDP on finance. Today, it spends twice that. And the results have been catastrophic.

    Despite the plutocracy’s claims that the heads of financial companies and other CEOs deserve their increasingly outsized compensation packages, there is no evidence that they are doing a better job than they used to at running their companies or allocating capital more efficiently.

    On the contrary, the lion’s share of the responsibility for the economy’s continuing struggles can be comfortably laid at the feet of America’s hypertrophied, dysfunctional financial sector.

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