REAL ESTATE
Industrial Property Values Skyrocketing in New Jersey
Warehouses booming
By Diane C . Walsh Editor
Industrial property continues to be the hottest asset in New Jersey , as developers reshape brownfields and convert old factories into today ’ s sought-after warehouses and distribution centers .
The story is told by tracking the values . Ten years ago , industrial buildings were worth $ 60-a-square foot . Today , as e-commerce grows and the need for warehouse space and logistics intensifies , the price is $ 300 to $ 600-a-buildable foot .
“ They ’ re worth more than all but a dozen office buildings in the state ,” said Clark Machemer , senior managing director of the Northeast Region for Crow Holdings .
Crow Holdings is now completing a three-building , 1.2 million-square-foot logistic parks in Carteret , just east of the NJ Turnpike . The buildings will feature 40-foot ceilings with a combined 140 trailer parking spots , 174 dock doors and six drive-in ramps .
The Carteret complex comes on the heels of another high-profile development of 925,000-square-feet of logistics property in Franklin Township . Crow leased it to LG Electronics USA before selling it for $ 164 million . One of the Dallas-based company ’ s latest projects is the ionic Marcal Paper factory off Route 80 in Elmwood Park that was devastated by a fire three years ago .
Within the next few months Machemer said passers-by will see new life breathed into the landmark site . There are plans for a 206,000-square-foot industrial building on the property , he said .
The Crow executive and Matt Schlindwein , managing partner of Greek Development , another major player in the industrial market , were invited to speak before the Commerce and Industry
“ In essence , New Jersey is a built-out state . You can ’ t find the next farm field . That ’ s why land is appreciating so much and there ’ s been such an increase in land value .”
Association of New Jersey recently . A leading land use attorney , Lisa A . John-Basta , a member of CSG Law , also joined the panel . Todd Hay , a member of the CIANJ board and a regional vice president at Pennoni Associates , moderated the discussion as the audience was updated on major projects and the challenges developers face in completing them .
“ In essence , New Jersey is a built-out state . You can ’ t find the next farm field . That ’ s why land is appreciating so much and there ’ s been such an increase in land value ,” Machemer said .
Developers have to be creative here , he said , noting one of his latest deals requires bringing in fill to create 90 acres . The knowledge base and experience available from the state ’ s engineers , developers , architects and land use attorneys enables New Jersey to tackle difficult sites , Machemer said . “ In other markets the knowhow is not there ,” he said , noting Dallas was abuzz over a recent development on an old landfill . “ We ’ re building in landfills on a daily basis .”
For an example of the complexities of New Jersey projects , John-Basta said her firm was involved in the redevelopment of an old Army base at the Military Ocean Terminal in Bayonne , commonly known as MOTBY . The deal included lands swaps with the Port Authority of New York and New Jersey , riparian lands , construction of a private roadway , and creation a 17-foot berm to block noise , to new a few components .
Greek Development ’ s 4.1 million-square-foot project near Tremley Point in Linden was rife with geo-technical challenges , Schlindwein said . It is the largest industrial development in the Port of New York and New Jersey , minutes from the New Jersey Turnpike and Newark Liberty International Airport . Completion demanded
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Lisa A . John-Basta , CSG Law
Clark Machemer , senior managing director of the Northeast Region for Crow Holdings
Matt Schlindwein , managing partner of Greek Development
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