X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

NEWARK, NJ—Public Service Electric & Gas, New Jersey’s oldest and largest utility, is making its presence felt in the Garden State’s real estate market in a big way. PSE&G, a $6-billion company ranked 263rd among the Fortune 500, has formed PSEG Area Development LLC. The unit will provide economic development services as well as a range of fee-based real estate services through its PSEG Sitefinders LLC subsidiary. In other words, the utility is getting into the real estate brokerage business.

The move is essentially part of the utility deregulation scenario. “Energy deregulation has significantly reduced the size of our regulated utility operations and prior sponsorship of our economic development initiatives,” says Tim Comerford, president of PSEG Sitefinders, a licensed brokerage. “Moving these activities into the unregulated arena will allow us to generate revenue to subsidize our no-fee programs.”

For openers, Sitefinders has hooked up with Allied Realty of Fairfield, NJ in a formal alliance that will find space and sign up companies locating or relocating within the state. It’s the first of what are expected to be a number of alliances that geared to put ting PSE&G on the Garden State’s commercial brokerage map. In touting the alliance, Allied partner Ron Kraft specifically cited “PSE&G’s stature.”

In the past PSE&G, historically only an indirect real estate player, would have handed off a hot corporate prospect to a local real estate broker. Now, however, it will share commissions with its burgeoning network of brokers, which could amount to hundreds of thousands of dollars a year, according to observers. The company is currently seeking proposals from brokers to become part of the network.

Directly or indirectly, PSE&G’s real estate role traces back reportedly to the Great Depression when New Jersey had plenty of vacant urban industrial buildings and PSE&G helped to fill those buildings with tenants in order to increase its own electrical power business.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.