Amazon said it won’t reopen its search for a second headquarters after pulling out of New York City, but who’s to say that Newark and other shortlisted cities will just quietly step aside?
New Jersey remains one of the nation’s most underserved markets for cold storage space, despite its potential to share in the expanding market for fresh food and online grocery delivery.
Newark appears to have fallen short in its bid to land Amazon’s coveted second headquarters, with published reports indicating that the company is leaning toward New York City and northern Virginia as part of a split location.
Dermody Properties’ 1,100-acre logistics park in Logan Township has attracted a long list of well-known users over more than decade. And the firm is now set to enter its last phase of development — breaking ground on two buildings that will add another 563,000 square feet to the portfolio.
As you’ll find out in this month’s cover story, developers and brokers that have long focused on New Jersey are now stretching beyond the traditional boundaries of the state’s industrial market. And they are stretching them in every direction — for different reasons — in their quest to keep pace with tenants that are adopting a more regional approach.
An institutional investor has paid more than $147 million to acquire a 617,000-square-foot Amazon fulfillment center in Teterboro.
A recent ruling by the U.S. Supreme Court will likely raise the cost of some online sales and provide an infusion of revenue for New Jersey’s state coffers, but its impact on commercial real estate may be limited.
Newark city officials have formalized a $2 billion incentive package meant to attract Amazon’s second headquarters project, one that could also be used to lure other companies that would deliver a similar economic impact.
Experts say Newark is enjoying not only a surge of new private-sector investment, but also a level of interest that is helping to break the stigma that has plagued it for decades.