Alexander von Summer,
Executive Vice President
Alexander
Summer, L.L.C.,
Paramus, NJ
NEW JERSEY TECH NEWS-SEPTEMBER
2000--New Jersey is so attractive to high-tech companies
precisely because there is no single dominating factor
drawing them to the state. Rather, it is New Jersey's many
diverse qualities that make it so attractive. New Jersey has
achieved a unique balance of developed and urban areas in a
landscape of mostly residential and even rural communities.
This creates a high quality of living in a state with a
highly skilled labor force, a stable economic base,
geographic proximity to New York City and recreational
areas.
Furthermore, the state has a sophisticated infrastructure for the high-speed movement of people, goods and data. High-tech firms have been leading the movement for creating a more balanced work environment to maximize job satisfaction and productivity, which goes beyond a business casual dress code.
There are examples of new firms creating amenities like nap rooms and Ping-Pong tables, in addition to cafeteria and concierge services. Consequently, firms in New Jersey are better able to achieve a balance both at home and in the work place. Because of its diverse demographics, there is no one area drawing all of the companies. Though rising across the state, asking rents are still lower in such hot markets like Jersey City than across the Hudson in New York City. As a result, there has been growth in many parts of the state, particularly those with existing infrastructure. Additionally, New Jersey's economy is well positioned for the future. With a sound base in telecommunication firms and biotechnology, New Jersey should remain a fertile environment for growth.
The roads less
traveled:
Quite frankly, I see neither a groundswell of interest
in developing less populated areas in the state, nor a
compelling reason to do so. The less developed areas are
within close commuting distance to the more urbanized areas
that are better positioned to sustain growth. Fortunately,
over the past few years, market demand has helped steer
growth towards the areas that provide the best
transportation and information infrastructure where it
should be, and away from the rural areas. Both Newark and
Jersey City have seen a flurry of activity given their
attractive rental rates, proximity to New York City, and
mass transit infrastructure. Furthermore, these markets are
conveniently located on junctions in major fiber optic
networks granting buildings there easy access to critical
high band-width connectivity.
What to watch for:
Bandwidth has been a hot topic of discussion lately as
property owners are scrambling to develop a "clicks and
mortar" strategy. Telecommunication firms, both large and
small, are competing to gain access to buildings in an
effort to wire them as "smart buildings." Large property
owners are banding together to forge alliances to deliver
goods and services to their tenants. Like so many
industries, prices are going down and the level of service
is increasing.
Down the line:
Better access to information will help simplify the
complex task of finding and leasing space. There is a debate
raging over the pace and scope of the impact on the real
estate brokerage business by web-based real estate portals.
Extremists believe brokers are "die-hard" and "old school,"
and think that such startups are a passing fad. Real estate
will be no different from other industries. The relationship
between tenants and property owners will deepen as they
demand more from each other in the way of service offerings
and revenue opportunities.