Improve Your State of Work
Under the NJ Emerge State Incentives Program, companies are eligible for a potential benefit range of $500 to $8,000 per employee for 7 years in tax incentives for moving from another state to New Jersey. At a 250 square feet per employee space metric, this tax incentive could equal approximately $35 per square foot savings per annum. Incentives could provide an estimated 44% reduction in occupancy costs in Jersey City over comparable Manhattan buildings. Nothing this close to NYC comes with this level of economic value. Jersey City is the fastest growing municipality in the state.
Occupancy Cost Analysis
| Waterfront Jersey City | Downtown, NYC | |
|---|---|---|
| Rentable SF | 35,000 SF | 35,000 SF |
| Loss Factor | 20% | 26% |
| Usable SF | 28,000 SF | 25,900 |
| Density (per thousand SF) | 4/1,000 | 4/1,000 |
| Approx. Number of Employees | 140 | 140 |
| OCCUPANCY EXPENSE | ||
|---|---|---|
| Rent | $45.00 + 2.75% annual increases |
$65.00/5; $70.00/5 |
| Term | 10 Year | 10 Year |
| Free Rent (outside of the term) | 8 Months | 12 Months |
| Real Estate Taxes (assumes 2% annual increases) |
$4.58 PSF | $10.00 PSF |
| Operating Expenses (assumes 2% annual increases) |
$7.72 PSF | $15.00 PSF |
| Tenant Electric | $1.75 PSF | $3.25 PSF |
| Occupancy Tax | — | 3.90% |
| CAPITAL EXPENDITURES | ||
|---|---|---|
| Build Out Cost | $120.00 PSF | $200.00 PSF |
| Work Allowance | $65.00 PSF | $80.00 PSF |
| State Benefits * (per new employee) |
$4,250/yr | — |
| Annuity Cost | $44.19 | $82.76 |
| TOTAL ANNUAL COST | $1,599,504 | $2,840,178 |
| COST PER EMPLOYEE | $11,425 | $20,287 |
SAVINGS PER ANNUM $1,240,674 ($35.45 PSF)
*State Benefits assumes relocation of 140 new employees. Base benefit for Jersey City, Waterfront is $3,500 for 7 years. Analysis also assumed bonuses of $500 for targeted industry and $250/new employee for the avg. salary in excess of county median salary ($58,722) by 35%.