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.

$3,500 – $8,000 per job per year for new positions
$1,750 – $4,000 per job per year for retained positions
Urban enterprise sales tax exemption

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
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%
Build Out Cost $120.00 PSF $200.00 PSF
Work Allowance $65.00 PSF $80.00 PSF
State Benefits *
(per new employee)
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%.