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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.

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