Thank you for sharing!

Your article was successfully shared with the contacts you provided.

JERSEY CITY-In what is being touted as one of the largest office deals in the Tri-State region this year, Broadridge Financial Solutions Inc. renewed and expanded its lease at 2 Journal Square. Michael T. Cohen, president of FirstService Williams in New York City, along with Colton Brown, managing director at FSW in Parsippany, and David Pennetta of Oxford & Simpson Realty Inc. of Jericho, NY advised Long Island, NY-based Broadridge in the transaction.

Cohen declined to specify the financials of the deal, although he tells GlobeSt.com that a rent abatement period was given in the seven-year renewal. The new contract expands Broadridge’s office space by 25,000 square feet to a total of 320,282 square feet, giving it occupancy of the entire building. Located above the Journal Square PATH terminal, 2 Journal Sq. is owned in partnership by Hartz Mountain Industries, Panepinto Properties and Garden State Development.

“North Jersey, with more large blocks of space than Manhattan and much lower costs than Manhattan remains an excellent choice for a major office location because it has a comparable labor pool,” says Emanuel Stern, president and COO of Hartz Mountain Industries, in a statement.

Broadridge’s current lease had a cancellation option in 2011, according to Cohen. The two parties began to talk about a renewal in 2007, he says. However, the landlord found it difficult to determine what the correct rent should be so far in advance of the cancellation. But in 2009, “it was easier for Hartz to foretell the correct numbers,” Cohen recalls. At the same time, the tenant concluded that the building fit its long-term objectives. Also, Hartz was able to ensure an immediate savings to Broadridge’s P&L, Cohen adds.

Similar type deals will be the norm in the next several years, Cohen says. “Creditworthy companies that can see far into the future regarding their organizational and real estate needs will offer something very precious to landlords–additional term on a lease,” he says. “With the financing markets difficult, term is a landlord’s and lender’s best friend.”The question is whether the landlord can offer the inducements to make a tenant stay. “In this case, it was,” Cohen says.

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
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?



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 © 2022 ALM Global, LLC. All Rights Reserved.