Realogy cuts costs by moving HQ within NJ
Realogy CEO Richard Smith and a rendering of the building at 175 Park Avenue in Madison, N.J.[Updated 5:30 p.m. with broker information] Thanks to state incentives, Realogy has decided to keep its headquarters in New Jersey, the firm announced today, but change locations. In late 2012 or early 2013, the real estate parent company of the Corcoran Group, Citi Habitats, Coldwell Banker and Sotheby’s International Realty, will move into a building that’s currently being constructed at 175 Park Avenue in Madison, less than seven miles from the corporation’s current space in Parsippany.
Realogy CEO Richard Smith said the new offices remain close to the center of the geographic location of many Realogy employees, and the new offices will save about 25 percent in rent compared to the former space. “We are pleased to make this long-term commitment to stay in New Jersey, and we thank Governor [Chris] Christie, Lieutenant Governor [Kim] Guadagno and their administration for accommodating our long-term needs,” he added.
The savings come on top of a 10 percent annual increase in third quarter revenue for Realogy.
The real estate firm had been considering several relocation options out of New Jersey, but incentives from the New Jersey Economic Development Authority and the New Jersey Business Action Center helped keep the company, which was recently ranked the second best private employer in the state by local business publication NJBiz, in the Garden State.
Realogy was represented by subsidiary Global Client Solutions in signing the 17-year lease to be the lone tenant in the renovated, 270,000-square-foot structure being developed by N.J.-based Hampshire Companies. Newmark Knight Frank executives David Simson, Tim Greiner and Brendan McBride represented Hampshire. — Adam Fusfeld