Utility company signs 825,000 s/f Newark renewal
In one of the largest real estate transactions in New Jersey state history, and a boon for the ongoing revitalization of Newark, Colliers International New Jersey announced today that it has arranged an historic, long-term lease at 80 Park Plaza on behalf of Public Service Enterprise Group Inc. (PSEG).
The 825,000 s/f renewal represents PSEG’s ongoing commitment to Newark and the surrounding community, keeping the utility company in the same headquarters it has occupied since 1979.
PSEG is a publicly traded diversified energy company with annual revenues of more than $12 billion, and headquartered in Newark. The 25-story 80 Park Plaza, with more than one million square feet of office space, is centrally located in Downtown Newark and one of the most recognizable structures in the city. PSEG employs 10,000 workers total, with approximately 1,650 working in the headquarters building.
Both the tenant and the landlord, Wells Real Estate Investment Trust II (Wells REIT II), plan to make significant capital and energy efficiency improvements to 80 Park Plaza.
“PSEG is an integral part of New Jersey and the City of Newark and was committed to retaining its existing headquarters,” said Bryn Cinque, an executive managing director of Colliers International New Jersey, who along with vice chairman Eric Witmondt represented the tenant in the transaction.
Cinque noted that there were times during the extensive analysis period when PSEG considered relocating some of its operations, but ultimately wanted to remain in Newark.
“This was a great outcome. The city, state and, of course, the landlord, were very receptive and accommodating. PSEG is very pleased to move ahead at 80 Park Plaza.”
“With this single transaction PSEG makes a tremendous statement for the viability of Newark and the state of New Jersey as business-friendly environments and a center of economic activity,” said Robert Martie, executive vice president of the Colliers International New Jersey region. “Transactions of this size and stature are rare, and will help define the future of this city.”
The transaction builds upon the momentum that Newark has been gaining with Federal and state infrastructure investments totaling more than $100 million.
Major corporations have committed to Newark, including the Panasonic Corp., which recently announced plans to build a $200 million, 338,000 s/f headquarters building there, and Prudential, which has discussed a possible relocation within Newark to a new build-to-suit headquarters building.
John Meisel, of Jones Lang LaSalle, represented the landlord in the transaction.
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