Improve Your State of Work

Under the Grow NJ State Incentives Program, companies are eligible for a potential benefit range of $7,000 to $9,750 per employee in tax incentives for moving from another state to New Jersey. At a 200 square feet per employee space metric, this tax incentive could equal approximately $40 per square foot savings per annum. Incentives could provide an estimated 90% 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.

$7,000 - $10,500 per job per year for new positions
$3,500 - $5,250 per job per year for retained positions
Urban enterprise sales tax exemption

Occupancy Cost Analysis


Waterfront Jersey City Downtown, NYC
Usable SF 75,000 SF 75,000 SF
Loss Factor 20% 26%
Rentable SF 93,750 SF 100,351
Density (per thousand SF) 5/1,000 5/1,000
Approx. Number of Employees 375 375
OCCUPANCY EXPENSE
Rent $45.00 + 2.75%
annual increases
$60.00/3; $63.00/4;
$66.00/3
Term 10 Year 10 Year
Free Rent (outside of the term) 6 Months 13 Months
Real Estate Taxes
(assumes 2% annual increases)
$4.49 PSF $9.00 PSF
Operating Expenses
(assumes 2% annual increases)
$7.57 PSF $15.00 PSF
Tenant Electric $1.75 PSF $3.25 PSF
Occupancy Tax 3.90%
CAPITAL EXPENDITURES
Build Out Cost $100.00 PSF $175.00 PSF
Work Allowance $50.00 PSF $70.00 PSF
State Benefits *
(per new employee)
$7,750/yr
Annuity Cost $26.40 $75.44
TOTAL ANNUAL COST $2,474,930 $7,646,317
COST PER EMPLOYEE $6,600 $20,390

SAVINGS PER ANNUM   $5,171,387 ($49.04 PSF)

*State Benefits assumes relocation of 375 new employees. Jersey City, Waterfront qualifies for the HUB municipality base grant of $5,000/new employee and Transit Oriented Development bonus of $2,000/new employee. Analysis also assumed bonuses of $500 for super jobs (>250) and $250/new employee for the avg. salary in excess of county median salary ($58,722) by 35%.