The state of the market is now prompting Lefrak to build NewportOffice Center VII, a 1.1 million-sf, 32-story tower slated to beunder construction next month. The projected timeline hascompletion scheduled for June 2002. It will also finish up Lefrak'sfirst phase of office construction at Newport with a total of fivemillion sf of space. Altogether, the $10 billion Newport projectcovers 600 acres with office, retail and residential uses.

NOC VII is being built on spec, just like the other fourbuildings Lefrak developed here in the last three years. But itlikely won't remain that way for long. One signal: Lefrak hasleased more than three million sf at Newport in just the last 24months. The market has given no indication of slackeningdemand.

"Building on spec takes confidence," admits Lefrak Organizationpresident Richard LeFrak, son of legendary developer Sam LeFrak.The elder LeFrak is credited with starting the whole developmentphenomenon on Jersey City's waterfront.