NAIOP New Jersey CEO Michael McGuinness has expressed the commercial real estate development association’s support for S-3295/A-4, the “New Jersey Economic Recovery Act of 2020,” which passed the state Legislature yesterday (Monday).
The seven-year, $14.5 billion economic incentive program for New Jersey will include caps on awards and is intended to invest in innovation as well as job creation.
McGuinness said, “Passage of this incentives bill before the end of this financially devastating year could not be more welcome or timely. It is the culmination of 18 months of hard work and collaboration and guarantees that New Jersey sees a 200-400 percent rate of return on every dollar invested by the new Emerge program. Like the arrival of the COVID vaccine, this bill will be a booster shot for New Jersey’s economy.”
New Jersey’s office properties are reeling, with a substantial percentage of employees working from home due to the pandemic. With the likelihood that a hybrid work week is here to stay, many employers are re-evaluating their space needs and reallocating space on a regional basis.
McGuinness noted that the state has been without an incentive program since the NJDEA’s Grow NJ expired in July of 2019, hampering the ability to bring jobs and investments to the Garden State. “Now is the time for New Jersey – a high-cost, high-tax state – to do all it can to position itself as the best option for businesses,” he added.
NAIOP NJ represents commercial real estate developers, owners, investors and professionals that are on the front lines of economic development.
Maintaining New Jersey’s competitive edge is a key issue for the association and its members, which have relied on incentive programs to help fuel growth since the economic downturn in 2007.
However, the state faces stiff competition from neighboring states with programs that are meeting the needs of businesses looking to relocate and are less expensive than New Jersey.
“Businesses are making location decisions now, and we need to be ready to make the case for New Jersey,” said McGuinness. “S-3295/A-4 will help level the playing field, both with surrounding states and the nation.”
McGuinness urged Governor Phil Murphy “to sign this bill today and send a clear message to the world that New Jersey is open for business.”
Founded in 1970, NAIOP NJ is a chapter of NAIOP, the nation’s leading trade association for developers, owners, investors, asset managers and other professionals in commercial real estate with 19,000 members in North America. NAIOP advances responsible commercial real estate development and advocates for effective public policy.