The recent economic downturn has provided new opportunities for businesses to locate their operations in the New York / New Jersey region.
The region offers an ideal location at the midpoint of the affluent, highly populated corridor between Boston and Washington D.C. More than 21 percent of the entire U.S. retail sales market is within a 250-mile drive of the Port of New York and New Jersey marine terminals. In short, businesses in close proximity to the Port of New York and New Jersey marine terminals have abundant opportunities to capitalize on access to this vast regional consumer market.
Much of the available inventory with proximity to the port’s marine terminals lies in facilities constructed within the past few years and offer 36-foot-high clearance. More than 10 percent of the 85 million square feet of industrial real estate inventory near the port facilities was available as of late 2010. Meanwhile per-square-foot asking rates for prime Class A property fell by as much as 40 percent from pre-recessionary times. In other words, vacancy and availability are up, while rates are down.
Transportation acts as a major driver of site selection, as do operating costs. With this in mind, near-port locations become especially important. With fuel prices on the rise, shorter distances for truck drayage can translate to significant cost savings. An abundance of quality skilled labor and business tax incentives also make the New Jersey market a diverse base for solid businesses.
Please take a look at the following FTZ 49 general-purpose zone warehouse operators and zone sites currently available to support the needs of your company.
Federal Business Centers is a third generation family business that, since 1965, has offered business space for lease in Raritan Center, including office space, flex space, and warehouse/distribution space. Located in the heart of central New Jersey–in the townships of Edison and Woodbridge within Middlesex County–Raritan Center is one of the most widely selected business parks in New Jersey. It is home to hundreds of companies–Fortune 500 companies, Global 500 companies, and market leaders from every business sector.
As a master-planned, mixed-use business park, Raritan Center encompasses over 2,350 acres of land and almost 15 million square feet of business space. It is located immediately adjacent to Exit 10 of the New Jersey Turnpike (I-95), at the crossroads of Interstate 287/440, the Garden State Parkway, and U.S. Routes 1 and 9. Port Newark is within 20 miles of Raritan Center via the New Jersey Turnpike, as is Newark Liberty International Airport. This prime location provides instant access to the mid-Atlantic marketplace, one of the richest consumer markets in the world.
On-site business amenities at Raritan Center include freight rail service provided by CSX, Conrail, Norfolk Southern, and Raritan Central Railway; package shipping services provided by FedEx Express, United Parcel Service, FedEx Ground, and the United States Postal Service; and restaurants, hotels, banks, and even a fitness center. In addition, currently under development is Port Raritan, an on-site, deep-water port on the Raritan River. Upon completion, a 2,000-foot long pier will facilitate freight transfers between short sea ships, barges, railroad cars, and trucks.
IDI – is a national, full-service, market-driven, industrial real estate developer providing strategically-located properties across North America to best meet clients’ distribution, warehouse, and light-manufacturing needs. IDI has built distribution centers for retailers such as Home Depot, Wal-Mart, Timberland, and Circuit City.
Consider IDI’s NorthPort site, 350,000 square feet in a single space situated on 16.5 acres off Exit 13A of the New Jersey Turnpike, a few hundred feet from both Newark Bay and Newark Liberty International airport, and less than a mile from the Port. NorthPort Distribution Center features 72 docks and two drive-in doors, 36-foot clear heights, and parking for 27 trailers and 121 cars. The facility is constructed of architecturally articulated and painted insulated precast concrete panels with seven-inch thick 4000 PSI non-reinforced concrete sealed with Ashford hardener sealant and a ballasted single-ply EPDM (rubber) roof.
The company is always branching out in new directions. In New Jersey, for instance, a 1.35 million square foot bulk distribution facility sits just off Exit 8A of the New Jersey Turnpike. While this facility (like the NorthPort site) have already been fully-leased, IDI maintains an additional 105 acres at Exit 8A, and this site can accommodate 1.7 million more square feet in three buildings.
Heller Industrial Parks, Inc., one of the nation’s largest privately held owners and developers of industrial real estate, prides itself on combining 21st Century warehouse space with old-fashioned business values. The company specializes in the building, leasing and management of strategically located distributions centers. Heller boasts an inventory of over 16 million square feet of space in New Jersey, Pennsylvania, Illinois, Indiana and Texas with a zero percent vacancy rate over the past five years, with 10.5 million square feet is concentrated in New Jersey’s heavily traveled Northeast corridor.
Heller designs its warehouse properties to be a major fundamental tool for industrial companies, providing durable, functional, and very economical storage and distribution space. Heller’s industrial amenities include features like high cube storage, bay spacing designed for efficient rack storage layouts, concrete aprons, ample car and trailer parking. The company is planning to retrofit its entire New Jersey portfolio with solar energy and energy-efficient lighting through cost-effective space options, more efficient building design and the implementation of an aggressive energy program.
Panattoni – In the last five years alone, Panattoni has built more than 75 million square feet of space worldwide. The company has extensive experience in the development of industrial, office, retail, and mixed-use facilities, and offers build-to-suit capabilities on a single or multi-market solution basis.
Panattoni maintains a large inventory of space ready for immediate occupancy in several markets. The firm also offers clients capabilities ranging from project planning to finance, construction, as well as asset management services. They have raised and managed their own fully-discretionary Equity Fund to invest in value-add acquisitions and build-to-suit developments. Panattoni’s status as a member of the U.S. Green Building Council testifies to their commitment to create projects that meet LEED (Leadership in Energy and Environmental Design) standards.
Panattoni maintains several sites in and around the confines of FTZ 49. And of course there’s Panattoni’s “iPort 12” international trade and logistics center, another 1.3 million square feet of state-of-the art properties located directly off Exit 12 from the New Jersey Tunrpike, 6 miles from the Port and Newark Liberty International airport, 20 miles from New York City itself.
ProLogis – ProLogis is the leading global provider of distribution space with more than 475 million square feet of industrial facilities owned and managed across North America, Asia and Europe. They are one of the largest providers of distribution space in the state of New Jersey, with more than 18 million square feet, much of which is located in FTZ 49, its subzones, or general purpose zones. Land parcels are available for build-to-suit opportunities. ProLogis takes pride in offering its customers well-located, modern distribution space and responsive property management as well as facility engineering, space planning, and highly competitive rental rates.
ProLogis’ Port Reading Business Park boasts 3.2 million square feet distributed on 315 acres of land, just minutes from the Port. In addition to enjoying the benefits of affiliation with FTZ 49, the Port Reading Business Park Building #7 is also part of the Urban Enterprise Zone in Carteret, New Jersey. ProLogis’ state-of-the-art Port Elizabeth Business Park boasts more than 1 million square feet of distribution space situated on a prime, 79 acre parcel of land. Only a few miles from Manhattan and Newark, the Port Elizabeth Business Park offers an unparalleled transportation system with overweight container accessibility adjacent to attractive and affordable housing, hotels, and restaurants.
River Terminal Development (RTD) – As one of the northeast region’s largest “value-added” developers, RTD has spent over 35 years developing more than 10,000,000 square feet of industrial, flex, and office properties in New Jersey, Pennsylvania and California. Their portfolio was developed by acquiring existing properties from such corporations as Western Electric, Westinghouse, Mack Truck, and A&P Stores, as well as the United States Government. Through purchases such as these, RTD has assembled an industrial park in Kearny, NJ featuring over 300 acres with approximately 5.5 million sq. ft. of prime warehouse and distribution facilities, which is located within a FTZ 49 sub-zone. Since the year 2000, they have continued to expand the Kearny facility with the construction of approximately 350,000 square feet of new buildings. They plan on future expansion on the land still available for speculative and build-to-suit projects. And currently, they have approvals to build 540,000 square feet of new buildings, and should have the first speculative 188,000 square foot building, divisible in increments of +/-40,000 square feet, completed by Q3 2011. Also in the year 2000, RTD assembled approximately 100 acres in Florence, New Jersey in the year 2000 with about 400,000 sq. ft. of prime warehouse and multi-tenant distribution facilities. They have since made substantial improvements to the property.