New Jersey Incentivizes New York Businesses to Cross the Hudson

Written By Jonathan Tuason | May 30, 2014
2019%2f09%2f13%2f12%2f37%2f33%2f74f84330 ac07 44b4 a1a3 384943e2516f%2ffile

New Jersey is extending generous invitations to businesses to relocate, convincing New York’s big names to open offices across the Hudson.  In raw numbers, there was an aggressive increase in the amount of payouts from 2012 to 2013, stepping up from $698 million to $1.3 billion.  


Its aggressive tactics are a response, at least in part, to its own losses, which included Roche, which despite the number of pharmaceutical and medical technology companies already based out of the Garden State, decided to open a research facility in Midtown East as it closed its Nutley, NJ site.


Companies have been taking note.  JPMorgan is readying to open 1,000 new jobs in Jersey City.  In another cost cutting move, the company is planning to relocate 2,000 employees to an office in downtown Brooklyn.


Even after successfully landing agreements with RBC Capital Markets and Univision, New Jersey’s goal is ultimately to address its struggling economy.  Last year, Governor Christie signed legislation that legalized online gambling.  He initially predicted that by enabling online gambling, the state would see an additional $180 million in tax revenue, but with a slump in activity, current estimates place that number closer to $12 million.  Governor Christie had previously called on casinos as an important part of the state’s recovery.


Unfortunately, New Jersey’s 6.9% unemployment rate in April was higher than that of the national average.  According to Rutgers Economic Advisory Service director Nancy Mantell, the jobs lost from the recession won’t be recovered until 2018, not to mention it was the only state to see an increase in foreclosures over the previous month.  Consequently, it’s questionable whether or not these increasing tax incentives are actually sustainable for New Jersey’s struggling economy, even if their purpose is to help it.


To be sure, it’s not as if extensive tax breaks are a definite solution.  By example, TD Bank, N.A., currently co-headquartered in Cherry Hill, is looking to take up a space in Manhattan’s midtown, supporting the city’s deputy mayor for housing and economic development Alicia Glen’s statements regarding a tax break war, “We’re not going to negotiate against other states.  We are sticking to our guns.  That is not a game we’re going to play.”


Elsewhere, the incentive to move isn’t just about tax breaks - for Gwynnie Bee, an e-commerce business that announced a move to Ohio, it’s about a better deal for every party involved.  Vice president of operations Robert Escobar commented for Crain’s, “In New York, you pay someone $15 an hour and they struggle to make ends meet.  In Ohio, you pay someone $12 an hour and they can have a mortgage.”

Blog Archive


This information is not verified for authenticity or accuracy and is not guaranteed and may not reflect all real estate activity in the market. © 2021 REBNY Listing Service, Inc. All rights reserved. RLS IDX Data display by Elegran LLC. IDX information is provided exclusively for consumers’ personal, non- commercial use and that it may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing.

Elegran LLC may or may not be the exclusive listing agent of the properties being displayed on All data displayed on is presented for informational purposes only and should be independently confirmed by all customers. All Information is compiled from both public and private sources including, but not limited to the RLS, MLS and ACRIS; each of which is assumed to be reliable. All information displayed is subject to errors and omissions regarding apartment specifications and final sale prices, and further, any unit listed may have had its listing withdrawn without notice subsequent to such information being compiled. No representation is made as to the accuracy of any description (ie: listing, close sale data, and/or building description) of any building or individual unit. All measurements and square footage are approximate and all information herein should be confirmed by customer and/or their attorney. Elegran LLC, its members, affiliates, and contributors adhere to New Your City, New York State, and United States Fair Housing Laws.