New Jersey – Northern

Space Measurement Standard

BOMA

Space Unit of Measure

Square Feet

Financial Data Below Reported In

USD

15%
Typical Loss Factor from Rentable to Useable Square Feet

Landlord Concessions

Fit-Out Concession

The Landlord typically provides a contribution or concession to fit-out as a part of the lease transaction.

Amount of Fit-Out Concession

$5/sf-$30/sf

Typical range of fit-out contribution.

Rent-Free Period

In addition to the fit-out contribution, the Landlord typically provides a contribution or concession in the form of a rent-free period.

Standard Range of Rent-Free Months

0.5mo.-1mo.

Typical number of rent-free months.

Rent-Free Period Notes:

Most office leases are Gross + Tenant Electric (TE). TE is typically $1.75 to $2.00 PSF

Lease Provisions

Lease Term

3yrs.-15yrs.

Typical lease term in years.

Lease Term Notes:

Typical lease term is 5 years

Operating Expenses & Service Charges Included

Quoted market rent typically does not include operating expenses (service charges). There are additional charges that apply to leasing space.

Additional Charges

$1.75/sf-$2/sf

Estimated range for all additional charges per Square Feet.

Additional Charges:

Utilities
Service Charges
Stamp Duty
Electric
Rates
HST
Cleaning
Hydro
Registration Fees
Taxes
Insurance
VAT
Other

Service Charge Notes:

Work-letters vary based on many variables but usually $3.00 to $5.00 PSF is an average estimate.

CAM and Taxes typically run about $10.00 PSF combined, and tenants pay annual pass-throughs.

Tenants are typically receiving 0.5 to 1 month free for each year of the lease term.

Lease Timeline: The following apply to both office and industrial leases.

Lease Execution Requirements:

Typical upfront requirements
None for strong credit tenants
Upfront rental payment
Security deposit
Corporate guarantee
Not Applicable

Negotiated Subletting/Assignment

Typically, the tenant's right to sublease or assign the space is negotiated in the lease agreement.
Landlord Consent: Typically, the landlord's written consent IS still required.

Statutory Subletting/Assignment

This is NOT a statutory right.

Blend & Extend Strategies

Typically, a tenant can take advantage of "blend & extend" ("forward renewal", "early renewal", etc.) strategies when the appropriate market conditions exist.

Statutory Early Termination

This is NOT a statutory termination right.

Negotiated Early Termination

It is NOT typical for tenants to be able to negotiate an early termination right in the lease agreement.

Early Termination Notes:

Cost: not typical, but if so, unamortized costs plus a penalty

Landlord Concessions

Fit-Out Concession

The Landlord typically provides a contribution or concession to fit-out as a part of the lease transaction.

Amount of Fit-Out Concession

$1/sf-$2/sf

Typical range of fit-out contribution.

Rent-Free Period

In addition to the fit-out contribution, the Landlord typically provides a contribution or concession in the form of a rent-free period.

Standard Range of Rent-Free Months

2mo.-4mo.

Typical number of rent-free months.

Lease Provisions

Lease Term

3yrs.-10yrs.

Typical lease term in years.

Operating Expenses & Service Charges Included

Quoted market rent typically does not include operating expenses (service charges). There are additional charges that apply to leasing space.

Additional Charges

$1/sf-$3/sf

Estimated range in total for all additional charges per Square Feet.

Additional Charges:

Utilities
Service Charges
Stamp Duty
Electric
Rates
HST
Cleaning
Hydro
Registration Fees
Taxes
Insurance
VAT
Other

Lease Timeline: The following apply to both office and industrial leases.

Lease Execution Requirements:

Typical upfront requirements
None for strong credit tenants
Upfront rental payment
Security deposit
Corporate guarantee
Not Applicable

Negotiated Subletting/Assignment

Typically, the tenant's right to sublease or assign the space is negotiated in the lease agreement.
Landlord Consent: Typically, the landlord's written consent IS still required.

Statutory Subletting/Assignment

This is NOT a statutory right.

Blend & Extend Strategies

Typically, a tenant can take advantage of "blend & extend" ("forward renewal", "early renewal", etc.) strategies when the appropriate market conditions exist.

Statutory Early Termination

This is NOT a statutory termination right.

Negotiated Early Termination

It is NOT typical for tenants to be able to negotiate an early termination right in the lease agreement.

Early Termination Notes:

Cost: not typical, but if so, unamortized costs plus a penalty

Section 1. Fit Cost Data

Total Fit-Out Cost

$80/sf-$90/sf

Class A Office

$65/sf-$80/sf

Class B Office

$60/sf

Flex Office / Warehouse

$50/sf

Flex Office / Warehouse

Total Fit-Out Cost Notes:

Costs are based on New Jersey non-union rates. Union rates can be 30% to 40% higher depending on the region. High-end office finishes can range from $90 to $135, excluding elevator lobbies and high-end reception areas, no eating facilities.

Furniture Cost

$45/sf-$75/sf

Class A Office

$40/sf-$65/sf

Class B Office

$30/sf-$40/sf

Flex Office / Warehouse

$25/sf-$35/sf

Warehouse

Furniture Cost Notes:

Furniture costs are not included in the Total Fit-Out Costs.

Low Voltage Cabling Cost

$4/sf-$6/sf

Class A Office

$3/sf-$5/sf

Class B Office

$3/sf-$5/sf

Flex Office / Warehouse

$3/sf-$5/sf

Warehouse

Low Voltage Cabling Cost Notes:

Low voltage cabling is not included in the Total Fit-Out Costs

Other (IT/etc) Cost

$75/sf-$125/sf

Class A Office

$55/sf-$100/sf

Class B Office

$40/sf-$60/sf

Flex Office / Warehouse

$40/sf-$50/sf

Warehouse

Construction to Move-in Cycle Time

10wks-14wks

Class A Office

10wks-12wks

Class B Office

6wks-10wks

Flex Office / Warehouse

6wks-10wks

Flex Office / Warehouse

Section 2. Scope of Work Description

Phase 1: Services Before and During the Transaction

Review the LOI and work letter portion of the Lease to ensure that the clients interests are protected during the build-out of the project.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Not typically included at all, but available for an additional fee.
Advise Colliers broker and client on project issues and their resolution as they occur.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Participate in building tours, if requested, to evaluate building systems and other cost-related observations and prepare a building due diligence report
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Develop high-level project estimate and timeline based on test fit and Client standards
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Schedule and chair Schematic Drawings and Design Development Drawings review meetings/conference calls
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Not typically included at all, but available for an additional fee.
Define workplace strategy for client, research what kind of location, office / work environment accelerates business
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Not typically included at all, but available for an additional fee.
Define program of requirements for location, building and interior characteristics
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Engage with the Client Facilities Management (FM) Operations team to ensure alignment with Client standards
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Not typically included at all, but available for an additional fee.
Phase 1 Notes:
Too often PM is included after the lease execution or too late in the lease negotiation phase when it is too late to benefit the client.

Phase 2: Service Before and During the Design Process

Develop preliminary project budget and schedule.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Not typically included at all, but available for an additional fee.
Develop the RFP for selection of a space planner/architect and any other consultants identified and required
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Not typically included at all, but available for an additional fee.
Analyze, compare and evaluate responses to the RFP.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Not typically included at all, but available for an additional fee.
Orchestrate the space planner/architect interview process.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Not typically included at all, but available for an additional fee.
Negotiate, on behalf of the client, professional services agreements with the space planner/architect and other consultants.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Not typically included at all, but available for an additional fee.
Review architect’s final Program of Requirements.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Not typically included at all, but available for an additional fee.
Monitor the design team’s schedule of deadlines and deliverables. Coordinate meetings with the design team and the client. Manage the design process on behalf of the client.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Not typically included at all, but available for an additional fee.
Review and recommend payment of the invoices for services. Submit invoices for payment to landlord or client and prepare monthly reports of project costs versus project budget.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Not typically included at all, but available for an additional fee.
Negotiate all client-vendor contractors (IT, AV, Security/Access Control, Signage, High Density Filing) on behalf of client.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Not typically included at all, but available for an additional fee.
Coordinate with either Architect or General Contractor in permitting process
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Not typically included at all, but available for an additional fee.
Schedule and chair weekly design review meetings/conference calls
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Not typically included at all, but available for an additional fee.
Other Value-Add Services: Test fits (including Look & Feel) - Cost Estimates - Schedule/timing/phasing scenarios - Floor plan, core and circulation efficiency ratios(GIA vs NIA) (NOA vs NIA) - Technical due diligence/Assessments - We may pack everything into a Feasibility Study or proposed them separately depending on the situation.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Not typically included at all, but available for an additional fee.
Define interior guidelines for architect based on workplace strategy
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Not typically included at all, but available for an additional fee.
Control workplace strategy and functionality and during design process
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Architectural design
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Phase 2 Notes:
When negotiating all client-vendor contractors on a client's behalf, client approvals of specialty items is required.

Phase 3: Services Before Construction

Liaise with the Landlord’s Representative.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Not typically included at all, but available for an additional fee.
Prequalify a list of general contractors to be interviewed (consult lease to confirm any Landlord required GCs).
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Develop the RFP, including Landlord and/or Lease required documents, for selection of a general contractor.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Analyze, level, and evaluate the responses to RFP.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Orchestrate general contractor interview process and prepare evaluation scorecard.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Review all proposed subcontractors and monitor the general contractor’s subcontractor bid process to ensure integrity of the process and quality of the workmanship.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Monitor the general contractor’s schedule of deadlines and deliverables. Coordinate meetings between the design team, general contractor, client and appropriate vendors.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Not typically included at all, but available for an additional fee.
Negotiate, on client's behalf, the General Contractor agreement for Client approval
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Schedule and coordinate Architect's 90% Construction Drawings review
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Not typically included at all, but available for an additional fee.
Develop Project Cost Summary + Invoice Tracker and update weekly
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Not typically included at all, but available for an additional fee.
Phase 3 Notes:
Review all proposed subcontractors and monitor the General Contractor’s subcontractor bid process to ensure integrity of the process and quality of the workmanship when it is a CM-type contract.

Phase 4: Services During Construction

Coordinate with the Landlord’s Representative.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Not typically included at all, but available for an additional fee.
Conduct weekly construction meetings to assess progress, quality and conformance with the Contract Documents and distribute minutes of meetings.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Not typically included at all, but available for an additional fee.
Monitor the general contractor’s schedule.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Not typically included at all, but available for an additional fee.
Monitor the construction budget.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Not typically included at all, but available for an additional fee.
Review, and recommend for payment, the contractor’s Applications for Payment.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Not typically included at all, but available for an additional fee.
Monitor all project documentation.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Not typically included at all, but available for an additional fee.
Act at all times as client’s liaison to vendors contracted directly by Client (IT, AV, Security/Access Control, Signage).
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Not typically included at all, but available for an additional fee.
Oversee the punch list process to ensure acceptable completion of all items.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Not typically included at all, but available for an additional fee.
Close out all consultant, contractor and vendor contracts.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Not typically included at all, but available for an additional fee.
Submit General Contractor, vendor, and consultant invoices to Landlord for reimbursement per the Lease Workletter
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Not typically included at all, but available for an additional fee.
Review and recommend for payment all General Contractor, vendor, and consultant invoices; submit to Client for approval
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Not typically included at all, but available for an additional fee.
Deliver close-out documents, as specified in the Lease, to Client
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Not typically included at all, but available for an additional fee.
Coordinate value/engineering process, if required.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Not typically included at all, but available for an additional fee.
Provide as-built drawings and O&M Manuals to Client FM Operations team
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Not typically included at all, but available for an additional fee.
Phase 4 Notes:
When monitoring all project documentation, appropriate documents include: RFI's, submittals, shop drawings

When closing out all contracts, all appropriate GC or CM related items and Architectural - Engineering

Additional Services: Services During Relocation

Develop RFP for moving companies, evaluate responses and recommend selection of moving company or identify, interview and review proposal for services from relocation consultants.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Not typically included at all, but available for an additional fee.
Represent Client in development of move strategy.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Not typically included at all, but available for an additional fee.
Monitor development of move activity checklist.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Not typically included at all, but available for an additional fee.
Represent client on site during move process.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Not typically included at all, but available for an additional fee.

Additional Services: Project Management Services Related to Furniture/Workstation Procurement

Conduct bid process for all furniture (workstations, case goods, seating, filing) purchases specified by the architect and/or client.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Not typically included at all, but available for an additional fee.
Conduct bid process for refurbishment of existing furniture and/or workstations.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Not typically included at all, but available for an additional fee.
Evaluate bids and negotiate purchase order with manufacturer(s).
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Not typically included at all, but available for an additional fee.
Negotiate national buying contract with select furniture dealerships, using Colliers International purchasing power
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Not typically included at all, but available for an additional fee.
Change management before, during and after moving to the new work environment
Not typically included at all, but available for an additional fee.
Measuring/monitoring (KPI's) how the way of working and building accelerates business and goals of the client
Not typically included at all, but available for an additional fee.

Business Climate Business Climate data provided in partnership with Hickey & Associates. Rankings reported on a scale of 1 (least favorable) to 10 (most favorable). Please refer to the full report Explore 2017 for additional details.

Incentives and Labor Market

6, 4 6/10

Incentives
Value potential, diversity/number of programs

4, 6 4/10

Job Saturation
Competition for workers

6, 4 6/10

Wage Inflation
Rise in wages (past 10 years, local currency)

Educational Attainment

8, 2 8/10

HS Ed Eq
Proportion of population attaining this level

8, 2 8/10

University Ed
Proportion of population attaining this level

8, 2 8/10

Overall
Composite average of HS Ed Eq & University

Composite

6, 4 6/10

Additive sum of incentives, saturation, overall ed attainment, and wage inflation

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