NJ UE dips to 5.1%

Posted on January 22, 2016 by grim

From the Record:

N.J. added 13,300 jobs in December, for 65,200 in 2015

New Jersey’s unemployment rate in December fell to its lowest level since six months into the recession, as New Jersey added 13,300 jobs for an annual total of 65,200 – the highest figure in 15 years.

The state added 12,500 private-sector jobs and 800 government jobs in December, according to the monthly employment report by the New Jersey Department of Labor and Workforce Development.

The jobless rate fell from 5.4 percent in November to 5.1 percent – a level the state has not seen since June 2008. New Jersey’s rate, which was for a long time far higher than the nation’s, is now only a tenth of a point above the national rate of 5 percent.

The state has now recovered just over 80 percent of the 258,000 jobs lost as a result of the recession.

James Hughes, dean of the Edward J. Bloustein School of Planning and Public Policy at Rutgers University, called it a “strong report.”

He noted that the jobless rate fell because people found jobs, rather than because they left the work force, as has happened in the past. He also welcomed the growth in the labor force – the number of people who either have a job or are looking for one.

“The unemployment rate went down for good reason,” he said. “The fact that the labor force is growing indicates that people are starting to sense that there are available jobs out there, and they are returning to the labor force.”
…
The report also revised the November figures, reducing the previously announced gain of 7,900 jobs to an increase of 4,800.

The full year figures showed that the state in 2015 gained the most jobs in the education and health services sector, the trade, transportation and utilities sector and the construction sector. All of the major sectors added jobs over the year.

“With these gains and with the unemployment rate hitting the lowest levels since before the recession, the Garden State begins the New Year on a very strong economic foundation,” said James Wooster, chief economist for the New Jersey Department of Treasury.

Posted in Economics, Employment, New Jersey Real Estate | 121 Comments

Huh?

Posted on January 21, 2016 by grim

Posted in Humor | 116 Comments

NJ economy improves, fewer bankruptcies

Posted on January 20, 2016 by grim

From the Record:

NJ bankruptcies fall in 2015, as economy improves

Consumer bankruptcies in New Jersey fell 6 percent last year, bringing the figure to about the same as in the first year of the recession and offering another sign that the economy is strengthening.

The number of business bankruptcies in the state dropped by 25 percent in 2015, according to data just released by U.S. District Bankruptcy Court in Newark. The annual total of 718 business bankruptcies was nearly 14 percent lower than in 2007, the last year before the recession.

Business bankruptcies in Bergen County declined about 1 percent in 2015, while consumer bankruptcies fell 6 percent. Consumer bankruptcies slid 2 percent in Passaic County; the number of business bankruptcies in the county rose slightly.

North Jersey bankruptcies in 2015 included MCD Sports, the owner of bowling alley Parkway Lanes in Elmwood Park, and Marburn Stores, the small Fairview-based chain of home-furnishing stores, both of which filed for Chapter 11. Les Metalliers Chamennis Corp., a Paterson welding company whose high-profile work included renovating the Statue of Liberty’s 13-foot bronzed torch and flame, filed for Chapter 7 liquidation.

Bankruptcy attorneys said one reason for the decline statewide was the improving economy. However, they warned that the backlog of home foreclosures in state courts will ensure there are numerous bankruptcies still to come.

“The economy has marginally rebuilt itself,” said Ron Levine, a Hackensack bankruptcy attorney. “Unemployment is much lower than it used to be.”

That’s helped stop consumers and businesses from having to turn to bankruptcy, he said. Furthermore, he added, “banks have been more diligent in giving out credit after the [economic] crash,” reducing the likelihood lenders will get in over their heads.
…
Bankruptcy filings will stay at elevated levels until foreclosures diminish, the attorneys said. Although the number of new lender foreclosure filings — not including condominiums — fell 27 percent in 2015 to 35,733, the number is still high, and that fuels the bankruptcy figures, as borrowers seek refuge from foreclosure in the Bankruptcy Court.

Posted in Demographics, Economics, Foreclosures, National Real Estate | 73 Comments

Year of the Household

Posted on January 19, 2016 by grim

From DSNews:

New York Fed: Expect a Boost in Household Formation in 2016

Speaking on the country’s economic outlook and monetary policy at the Economic Leadership Forum in Somerset, New Jersey, Federal Reserve Bank of New York President Bill Dudley said the U.S. economy has its strengths and weaknesses—but he expects household formation to receive a boost in 2016.

“Housing starts are still well below the rate consistent with the nation’s population growth rate, and the fundamentals of housing demand remain positive,” Dudley said. “Rising employment is likely to boost the household formation rate and low mortgage interest rates should keep housing relatively affordable, despite the ongoing recovery in home prices.”

Dudley pointed to the moderate expansion of consumption and housing activity as strengths for the economy, while pointing to weak GDP growth in the fourth quarter as a negative—though the weak Q4 GDP growth should be weighed against the evident strength of the labor market, he said.

“I continue to expect that the economy will expand at a pace slightly above its long-term trend in 2016,” Dudley said. “In other words, I anticipate sufficient economic strength to push the unemployment rate down a bit further and to more fully utilize the nation’s labor resources.”

Posted in Demographics, Economics, Housing Recovery, National Real Estate | 74 Comments

Couple of rich people don’t a market make

Posted on January 18, 2016 by grim

From the Record:

Multimillion-dollar home sales on the rise in North Jersey

In a sign that wealthy households may be spending more freely, a dozen houses sold for more than $4 million in Bergen County in 2015 — up from eight the previous year.

The priciest sale in North Jersey in 2015 was the $13.9 million sale of an Alpine home to comedian Tracy Morgan, who bought the Rio Vista Drive manor in the name of a trust. The second most expensive sale was another Alpine home, on Buckingham Drive, which sold for $11 million.

By contrast, 2014’s priciest sale was for $7 million.

High-priced homes
Number of home sales over $4 million in North Jersey:

2013: 8
2014: 8
2015: 12

Sources: public records, New Jersey Multiple Listing Service

Annekee Brahver-Keely, a real estate agent with Russo Real Estate in Teaneck and president of the New Jersey Multiple Listing Service, said last year’s bump in high-end sales reflects a more optimistic economic landscape.

“It’s a true sign that the economy is definitely turning around,” she said. And Dennis McCormack, managing partner of Prominent Properties Sotheby’s International Realty in Alpine, an agency that handles a large share of the area’s luxury listings, said that the high-end market is more active than it’s been in a decade.

But high-flying sales like these are still rare, especially considering the supply. There are more than 60 Bergen County homes on the New Jersey Multiple Listing Service with asking prices of $4 million-plus. That adds up to a five-year inventory at the current sales pace.

Marlyn Friedberg of Friedberg Real Estate in Tenafly — who has several multimillion-dollar listings — said that higher-end homes are “taking a long time” to sell.

“There’s always a smaller pool of buyers in the multimillion-dollar range,” she said.

And even when the homes sell, their owners often have to accept a lower price — and a longer wait — than they’d like. For example, the Alpine home bought last year by Morgan for $13.9 million had been on and off the market since 2006, when it was listed for $24.9 million.

Posted in Demographics, Economics, New Jersey Real Estate | 41 Comments

Not NY, but we’ll take it personally too

Posted on January 16, 2016 by grim

From the Star Ledger:

Hey Ted Cruz: We’ve got your New York values, right here

Ted Cruz rarely comes to New York, other than those occasional visits to Goldman Sachs, where this man of virtue drops his hat on the ground and juggles lemons for campaign donations.

But his attack on Donald Trump’s “New York values” strikes us as fatuous on so many levels, starting with the fact that such a construct is impossible to define.

It’s a lazy way to characterize a melting pot that defies stereotypes: Life in TriBeCa is not like life in Sheepshead Bay. The culture of Rego Park is not the culture of Harlem. The accents of Riverdale are unlike the accents of Astoria. The rhythms of Citi Island bare no resemblance to the rhythms of Flatbush. The politics of New Dorp are nothing like the politics of Battery Park City.

Perhaps Cruz simply values homogeneity, though it’s doubtful he likes any word that begins with those four letters.

But we get it: Attacking diversity, especially the kind that exists in a city where they speak 800 languages, appeals to the feeble-minded denizens of flyover states. Their political heroes do not celebrate New York as the birthplace of immigration, industrialization, and multiculturalism, because it is easier to slander its progressivism.

And New York represents what Cruz fears: an exhilarating laboratory of life, where the rest of the country can learn something about tolerance and the marriage of disparate elements.

Posted in Politics, Unrest | 34 Comments

Tough times ahead?

Posted on January 15, 2016 by grim

From Bloomberg View:

Connecticut and New Jersey: Rich States, Poor Economies

It’s been a tough week for Connecticut, which just learned that it is losing its most prominent corporate citizen to Massachusetts. But that’s nothing new. It has also been a tough decade for the Constitution State. A tough quarter-century, even.
…
But here’s the thing. Connecticut is the richest state in the U.S., as measured by per capita income. That figure is of course skewed on the high side by a few hedge-fund managers in Greenwich, but even if you go by median household income, Connecticut ranks fourth, behind only Maryland, Alaska and New Jersey.

This contrast between great wealth and financial distress has inevitably led people to offer explanations. Cato Institute senior fellow Jim Powell, writing at Forbes.com, blamed it mostly on big government and high taxes. New York magazine economics columnist Annie Lowrey proposed that income inequality might be the problem.

As for me, I’ve been writing a lot lately about the diverging economic prospects of big cities and suburbs, so the possible explanation that immediately struck me is that Connecticut is all suburbs. (Which isn’t strictly true. But the state’s largest city, Bridgeport, has only 147,612 people, so it’s not far off.) That got me thinking about the suburb-filled state on the other side of New York City, New Jersey, which isn’t as fiscally bad off as Connecticut but is also a very affluent place that has had its share of economic woes lately.
…
Connecticut’s taxes went from moderate to high, while Massachusetts’ went from high to moderate (it scores even better on the Tax Foundation’s Business Tax Climate Index). So that Cato guy may be onto something. But New York has been No. 1 in tax burden almost every year, yet it’s growing faster than Connecticut and New Jersey. Clearly, taxes don’t explain everything.

Same goes for inequality: Connecticut is the most unequal state as measured by the Economic Policy Institute’s top-to-bottom ratio, which divides the average income of the top 1 percent of taxpayers by the average income of the other 99 percent, but New York is almost tied with it, and Massachusetts comes in fourth place. One product of this inequality is high real estate prices relative to median household incomes, which could be holding back job growth. Bloomberg estimates that New Jersey has the least affordable real estate in the country, while Connecticut is tied for fifth-least-affordable with Vermont. But Massachusetts is tied for second (with California).

Then there’s my cities-versus-suburbs thesis. New York, Massachusetts and Pennsylvania are home to the central cities of giant metropolitan areas — the New York, Boston and Philadelphia combined statistical areas are the nation’s first, sixth and eighth largest. Connecticut and New Jersey don’t have anything like that. The Hartford CSA comes the closest, ranking 36th nationally with a population of 1.5 million. But its central city has only 124,705 people; it’s basically all suburbs.

That doesn’t prove anything, of course. But I have the feeling that in an age of cities, Connecticut and New Jersey have lost some of their attractive force. Key industries — finance and insurance in Connecticut, pharmaceuticals in New Jersey — have suffered big job losses, and there isn’t much in the wings to replace them. Neither state is a major magnet for new college graduates, or for venture capital investment. Connecticut ranked 11th among the states in incoming VC investment in 2014, and that was an unusually good year; New Jersey ranked 17th. Massachusetts and New York, meanwhile, were Nos. 2 and 3 behind California.

Connecticut and New Jersey were early manufacturing powerhouses that weathered the decline of industrial employment in part by riding the great 20th century wave of suburbanization. That wave may be receding, at least in the Northeast. Which probably means more tough times ahead for both.

Posted in Demographics, Economics, Employment, New Jersey Real Estate | 77 Comments

No more patience as AC fails to deliver

Posted on January 14, 2016 by grim

From Bloomberg:

New Jersey May Seize Atlantic City as Rebound Eludes Casinos

After almost five years of piecemeal efforts to fix Atlantic City, New Jersey’s distressed seaside resort faces more drastic measures: the end of its casino monopoly and a state takeover or bankruptcy filing.

On the line is the future of a city that Governor Chris Christie once said was crucial to New Jersey’s recovery. Once the second-largest U.S. gambling market, Atlantic City has seen its key industry crumble as day-trip patrons shift to newer, closer casinos in nearby Pennsylvania and New York.

The decline has sapped municipal tax collections. While state aid helped plug a gap this year, the city of 39,000 faces a shortfall of $90 million next year, a third of its budget. The dire straits have led New Jersey officials to bring to the forefront options that have been discussed for months, if not years. The new initiatives spurred a rally for the city’s debt.

Lawmakers this week agreed to ask voters in November to expand gambling to northern New Jersey and share the revenue with Atlantic City. They’ve also proposed taking control of its finances for 15 years. Senate President Steve Sweeney, the highest-ranking Democratic legislator, said the city should declare bankruptcy if the takeover isn’t approved quickly.

“This is a very clear statement to Atlantic City: Get your act together, knock off the B.S. and start addressing what you need to address,” Sweeney told reporters Tuesday at the Statehouse in Trenton. “The state is not going to come in and bail you out any more. You need to fix this.”
…
An emergency manager appointed by the governor a year ago to oversee Atlantic City’s finances released one report in March and “no substantive subsequent updates,” S&P said in December. This month, the state Senate sent Christie legislation that would divert some gambling funds to the city and establish fixed payments from casinos instead of levies based on real estate values to prevent tax appeals that have strained the city’s finances.
…
On Tuesday, Sweeney said more must be done. He, Sarlo and Senator Kevin O’Toole, a Republican from Cedar Grove, announced plans to introduce legislation to give control of city finances to the state’s Local Finance Board. While about 15 municipalities get some state oversight, including Atlantic City, the last to lose total authority was Camden, from 2002 to 2010, according to his office.

Atlantic City, Sweeney said in a statement, has a “bloated” budget that amounts to $6,717 per person. That figure is $2,736 for Newark, New Jersey’s largest city, and $1,953 for Camden.
…
Ernest Coursey, a county lawmaker who represents Atlantic City, said the Camden takeover failed to produce results, while control over Newark’s public schools has led to few improvements.

“It will be a cold day in hell before we just stand by idly,” Coursey said at the Guardian press conference. “Everything the state touches turns to crap.”

Posted in New Jersey Real Estate, Politics, Unrest | 95 Comments

National foreclosures continue to decline, NJ still standout at the top

Posted on January 13, 2016 by grim

From HousingWire:

CoreLogic: Foreclosures fall to lowest level since 2007

The inventory of homes in foreclosure continued to decrease in November 2015, falling to the lowest level since November 2007, a new report from CoreLogic showed.

CoreLogic, a global property information, analytics and data-enabled services provider, released its November 2015 National Foreclosure Report on Tuesday.

The report shows that during the month of November foreclosure inventory declined by 21.8% and completed foreclosures declined by 18.8% compared with November 2014.

CoreLogic’s report also showed that the number of completed foreclosures nationwide fell year over year from 41,000 in November 2014 to 33,000 in November 2015.

Additionally, the number of completed foreclosures in November 2015 was down 71.6% from the peak of 117,657 in September 2010, CoreLogic’s report noted.

According to CoreLogic’s report, the foreclosure inventory represents the number of homes at some stage of the foreclosure process and completed foreclosures reflect the total number of homes lost to foreclosure.

CoreLogic’s report noted that as of November 2015, the national foreclosure inventory was approximately 448,000, or 1.2%, of all homes with a mortgage compared with 573,000 homes, or 1.5%, in November 2014.

The November 2015 foreclosure inventory rate marks the lowest for any month since November 2007, CoreLogic’s report showed.

“After peaking at 3.6% in January 2011, the foreclosure rate currently stands at 1.2% – a remarkable improvement,” said Dr. Frank Nothaft, chief economist for CoreLogic. “While there are still pockets of areas with high foreclosure activity, 30 states have foreclosure rates below the national average which is evidence of the solid improvement.”

But it wasn’t just the number of homes in foreclosure that fell to an eight-year low.

CoreLogic also reports that the number of mortgages in serious delinquency, which CoreLogic defines as 90 days or more past due, including loans in foreclosure or REO, declined by 21.7% from November 2014 to November 2015, to 1.3 million mortgages, or 3.3%, in this category.

According to CoreLogic, the November 2015 serious delinquency rate is the lowest since Dec. 2007.
…
Four states and the District of Columbia had the highest foreclosure inventory rate in Novemeber 2015: New Jersey (4.4%), New York (3.5%), Hawaii (2.5%), Florida (2.4%) and the District of Columbia (2.4%).

Posted in Economics, Foreclosures, Housing Recovery, National Real Estate, New Jersey Real Estate | 66 Comments

We’re all Atlantic City now

Posted on January 12, 2016 by grim

From the Record:

State officials working to take control of Atlantic City finances

Amid the push to expand casino gambling throughout New Jersey, state officials are in fast-moving discussions to take over Atlantic City’s finances for 15 years.

Sparking a turnaround for Atlantic City has been one of Governor Christie’s goals since taking office, and a takeover would be the most dramatic step yet – a move largely unprecedented in state history.

Senate President Stephen Sweeney, a Democrat, confirmed Monday night that discussions were under way between legislative leaders and Governor Christie.

“Something dramatic has to happen in Atlantic City,” Sweeney said. “When I say dramatic, I mean dramatic, because of the dysfunction that’s been going on year after year.”

The Record also obtained copies of two draft bills outlining the terms of the state takeover. The bills, obtained from a source in the Legislature, were set to be introduced today.

Christie, a candidate for the Republican presidential nomination, has envisioned a wholesale transformation of the city from a gambling destination to a tourist resort. Early in his administration, Christie pinned the city’s hopes on a $261 million tax break for the Revel casino. That casino later filed for bankruptcy.

Separately on Monday, Christie announced another deal with Sweeney and Assembly Speaker Vincent Prieto to allow two casinos in North Jersey, provided that the new casinos send a large cut of their revenue to Atlantic City as financial assistance.

Asked about the possible state takeover, a spokesman for Governor Christie, Kevin Roberts, said he would “not comment on pending legislation, let alone bills that haven’t been introduced yet.”

Administration lawyers, however, are aware of the discussions, The Record learned Monday.

And Christie is due to deliver his annual State of the State speech today. Appearing on MSNBC’s “Morning Joe” on Monday morning, Christie said he would have big plans to unveil but gave no details.

Posted in New Development, Politics, Shore Real Estate | 124 Comments

Last Call!

Posted on January 11, 2016 by grim

From HousingWire:

Black Knight: Will 2016 end refinance demand?

Approximately 5.2 million borrowers could likely both qualify for and benefit from refinancing, but it’s possible that this number will be slashed in half by the end of the year.

Black Knight Financial Services’ latest Mortgage Monitor report, which is based on data as of the end of November 2015, said that a 50 basis point rise in interest rates would eliminate 2.1 million potential candidates from refinance eligibility. A 1% rise in interest rates would eliminate 3.1 million.

Senior Vice President Ben Graboske explained that a 100-basis-point increase would only leave 2 million potential refinance candidates: the lowest population of refinance candidates in recent history.

“This population is diminishing, and as mortgage interest rates rise, it will only continue to shrink further,” said Graboske.

He added that this is already down from over 7 million as recently as April 2015, when interest rates were below 3.7%.
…
This giant fall out of refinance eligible borrowers could actually come to fruition if Freddie Mac’s predictions for 2016 come true.

Freddie Mac’s chief economist, Sean Beckett, said the market should expect the 30-year fixed-rate mortgage to average below 4.5% for 2016 on an annualized basis.

CoreLogic’s 2016 outlook for housing echoed this saying, “Fixed-rate mortgages will rise, perhaps up one-half of a percentage point between now and the end of 2016, reaching 4.5% for 30-year loans.”

For those who do choose to refinance, Graboske said, “Some 2.4 million are looking at potentially saving $200 or more on their monthly mortgage payments post-refinancing. Again, this is a very rate-sensitive population: after a 50-basis-point rise in rates, a million borrowers would lose out on those savings.”

Posted in Economics, Housing Recovery, Mortgages, National Real Estate | 65 Comments

“I have no hope. One thing about taxes: they go up.”

Posted on January 10, 2016 by grim

From the APP:

Property taxes up $537 million

HOLD ONTO YOUR WALLETS: PROPERTY TAXES IN NEW JERSEY INCREASED BY THEIR FASTEST RATE IN FOUR YEARS IN 2015.

The hike pushed the average local tax bill to $8,354 for homeowners, up $193 from the prior year, according to data compiled exclusively by the Asbury Park Press. That’s an increase of 2.4 percent, despite a supposed 2 percent cap enacted in 2010.

The jump marks the second straight year New Jersey’s property tax hike has gotten bigger, after three years of slowing growth in Gov. Chris Christie’s first term. Monmouth and Ocean counties fared worse most of the state with tax boosts of 2.6 percent and 3.3 percent, respectively.

The trend undercuts one of Christie’s selling points as he touts his gubernatorial record on the GOP presidential campaign trail. On his campaign website, Christie says property taxes are rising at their slowest pace “in more than two decades.” Growth has grown since dipping to 1.3 percent in 2013.
…
Adrienne DiPietro’s property taxes have tripled in the 20 years she has lived in Eatontown. She remains optimistic elected officials will do something about the problem but says “I’m not holding my breath.” She is considering whether she and her husband, Paul, will stay in New Jersey. Both are retirees.

“All of our retirement income, we have to start thinking about this in the next five years or so: Do we want to stay here and keep coughing up that much taxes?” DiPietro said. “Do we want to stay here, because the taxes are only going up and up?”
…
Senate Democrats’ plans for the coming year focus on six areas, and property taxes isn’t one of them. The Assembly speaker is primarily focused on transportation funding. Both sides of the Legislature are battling over North Jersey casinos and advancing constitutional amendments on gasoline taxes, redistricting and pension funding.

At the same time, the spending pressures that are leading to tax increases show no signs of abating. Gains in state tax collections will be needed for years to come to pay down a decades-in-the-making pension deficit.
…
“If New Jersey keeps this up, I could move to Delaware. Taxes are a lot cheaper, could get a house just as nice as what I have. Retire there, or to Pennsylvania,” Mazziotta said. “I want to stay in New Jersey. I like where we live. I like the house, I like our neighbors, the whole bit. I don’t want to be forced out.”

“New Jersey’s going to lose a lot of people,” he said. “I have no hope. One thing about taxes: they go up.”

Posted in Economics, Housing Recovery, New Jersey Real Estate, Property Taxes | 25 Comments

Inventory yet? Nope.

Posted on January 10, 2016 by grim

From Berkshire Hathaway Fox & Roach:

Low inventory fuels real estate market

Buyers and sellers in the New Jersey-Pennsylvania region will enter a highly competitive housing market in 2016 as the economy continues to get stronger, according to a survey of Berkshire Hathaway HomeServices Fox & Roach Realtors agents.

Forty-one percent of agents reported that both buyers and sellers will have equal power in 2016, an increase from 37 percent last year, while buyers’ power decreased from 44 percent to 34 percent in the survey. The online survey of 347 BHHS Fox & Roach agents was conducted from Nov. 3 to 20, 2015.

Agents feel positive about current regional market conditions for both buyers and sellers, but the sellers position is strengthening, as 53 percent of agents feel it is a good time to sell (up from 48 percent in 2015), while the percentage of agents that feel it’s a good time to buy remained the same as last year (77 percent).

Data from the BHHS HomExpert First Nine Months report shows monthly average inventory has remained relatively stagnant since 2012. Limited housing options will continue to fuel competition, with 30 percent of agents reporting that limited supply/inventory will be the biggest hurdle homebuyers will face in 2016.

In spite of the competitive atmosphere, agents are still seeing 67 percent of buyers submitting an offer below asking price, hoping the seller sees they overpriced the home, and 11 percent are willing to walk away if they need to increase their offer that will increase their mortgage from their current home.

Posted in Demographics, Economics, Employment, Housing Recovery, New Jersey Real Estate | 6 Comments

“He said a lot of bad things and he walked away.” (He called AC pols “corrupt and stupid”)

Posted on January 8, 2016 by grim

From the Star Ledger:

Is gambling mogul Steve Wynn interested in north Jersey casino?

The leader of the state Assembly said Thursday that Steve Wynn, the famed casino mogul who owned one of the first gambling halls in Atlantic City before leaving town decades ago, has expressed interest in returning to the state — as the owner of one of the first casinos in north Jersey.

Assembly Speaker Vincent Prieto (D-Hudson) said attracting entrepreneurs like Wynn is one of the reasons he continues to stick by his plan to ask voters to amend the state constitution to expand casino gambling to the northern part of the state, rather than support a rival bill by state Senate President Stephen Sweeney (D-Gloucester).

“I have talked to many individuals that have expressed interest in coming into New Jersey,” Prieto said. “Mr. Wynn is one of those individuals that has shown interest in different sites in the area.”
…
“It’s just another excuse,” the Senate president said. “The ball keeps moving.”

“Steve Wynn left New Jersey,” he added. “He said a lot of bad things and he walked away.”

Top state lawmakers agree that casinos in north Jersey would bring thousands of new jobs and millions in new revenue to the state. They also say it help New Jersey stay afloat in the competitive northeastern gaming market now that Atlantic City — the only place in the state currently allowed to offer gambling — has suffered through years of financial struggles.

Both Prieto and Sweeney have introduced plans to place a question on November’s ballot asking voters to approve two new casinos in north Jersey. But for the question to make it to the ballot, the Senate and Assembly need to compromise on a single plan, and Prieto and Sweeney remain deadlocked.

One of their key disagreements is over who should be allowed to operate the new casinos. Sweeney’s resolution requires that each of the new casinos must be owned at least in part by an operator in Atlantic City, which has seen four casinos close and thousands of jobs lost amid increasing competition in neighboring state over the last few years.

Prieto’s measure requires that for only one of the casinos. The second would be open to outside operators.

South Jersey lawmakers have argued that any north Jersey casino would cripple Atlantic City. And Sweeney said by requiring an Atlantic City operator to run one of the new casinos, it would at least allow cross-promotion that could boost the struggling resort and keep it from fading.

Posted in New Development, New Jersey Real Estate, Politics | 75 Comments

The rise and fall of the office park

Posted on January 7, 2016 by grim

From CityLab:

The Sad State of Suburban Office Parks

A report from the real estate service firm NGKF released late last year provides new numbers on an ongoing phenomenon: the slow, agonizing death of the American office park. The report looks at five far-flung office tenancy submarkets—Santa Clara, in the San Francisco Bay Area; Denver; the O’Hare region in Chicago; Reston/Herndon outside of Washington, D.C.; and Parsippany, New Jersey—and finds a general aura of decline.

Between 14 and 22 percent of the suburban office inventory in these areas is “in some stage of obsolescence,” suggesting that between 600 million and 1 billion square feet of office space are far from ideal for the modern company and worker. That’s about 7.5 percent of the country’s entire office inventory.

What makes an office park “obsolete?” Arguably the most important amenity for the modern office is location, location, location. This aspect of an office park is difficult to change. So-called Class A office space is in transit-oriented areas that are at least close to highways. These offices don’t need to be in walkable, urban neighborhoods—though that’s ideal. At the very least, today’s workers want to get lunch or maybe even a workout without firing up an engine, NGKF finds. The newest figures from the commercial real estate service firm CBRE bear this out: 10.4 percent of downtown office spaces are currently unoccupied, compared to 15.0 percent of suburban ones.

The decline of the office park is part of a larger story, often told, about shifting American working and housing preferences, from sprawling, isolated, “safe,” and cubicled suburban campuses to more well-connected and increasingly well-funded urban open floor plans. (The office park itself was a rejection of the city: “The first office park opened in Mountain Brook, Alabama, an upper-class white suburb of Birmingham, in the early 1950s as commuters became uneasy with simmering racial tension in city centers,” a recent Washington Post piece notes.)

The growing freelance economy, which sees fewer people traveling to a desk each morning, has contributed to a larger, national decline in the amount of office space occupied by workers. Much of country doesn’t need the wide-open office campus anymore.
…
But as the world (mostly) marches on without them, what will existing office parks be when they grow up?

There are models that developers are using to transform older office parks throughout the country, to measured success. They mostly involve turning definitely-suburban office parks into urban-like, albeit still isolated, office “cities.” (It is worth noting that many of these projects involve extensive rezoning efforts.) A facility in the community of Edina, Minnesota, is in the midst of transforming from sprawling office center into what one local developer called “not your father’s or mother’s office park.” In practice, that means linking the park to 15 miles of bike trails, big box store-free retail, and green space. Other struggling office parks are talking farmers markets, hotels, and housing.

Sure, those are familiar buzzwords. But it appears that the office park is not going down without a fight.

Posted in Demographics, Economics, Employment, National Real Estate, New Development | 111 Comments