The Real Deal New York

New office tenants flocking to Jersey City

NJ state incentives, soaring Manhattan prices are contributing factors
February 23, 2015 02:18PM

Jersey City is gaining popularity as a destination for a wider variety of office tenants.

Clothiers, publishers as well as more financial services companies are looking to settle down in the area, according to the Wall Street Journal. The new mix of office tenants, according to the newspaper, is due to New York’s rising rents, incentives from the state in New Jersey and booming residential development in the rest of Jersey City.

For example, apparel company Charles Komar & Sons received a 10-year, $37.2 million grant from the state of New Jersey. The company left its three locations in Manhattan and opened up in Jersey City, according to the newspaper.

JPMorgan Chase and RBC Capital Markets also inked a lease in the Garden State’s second largest city last year after receiving $303.6 million in state tax credits, according to the Journal.

Since 2013, New Jersey has spent more than $430 million in tax benefits — with which the state hopes to bring in more than 3,000 jobs — to attract new tenants to Jersey City or make sure that those who are already established don’t leave. [WSJ] — Claire Moses