Business & Finance
Wall Street firm to move 1,600 jobs to Jersey City, N.J
October 12, 2009 by admin · Leave a Comment
New Jersey has issued $90 million in tax incentives to The Depository Trust and Clearing Corp if they move a ton of jobs over the river to New Jersey. The estimated job increase will be 1,600 jobs to the Newport Pavonia section of downtown Jersey City.
Overall, this should help the real estate market clear some inventory and as long as these are long term jobs which there are reasons to believe they will be, residential sales could pick up as a result. The consequences of this type of news, however, may be a disconnect between buyer/seller of real estate. In light of the NJ Wall St. news, sellers may see this as a leverage opportunity. Hope not.
The real estate market has been hurt by unemployment especially in the finance sector. With positive revenue numbers coming this week on some of the world’s largest banks, look for some positive news as liquidity still remains high. We need anything we can to drive our housing market in the hub of the world over here. While unemployment continues to be our main problem, news like this is always nice.
“It’s great to see NJ make this bold move to bring in new jobs.” Scott Allan founder of New Jersey Real Estate Guys said “This will be viewed as a drawback in tax revenue for NJ by some, but will be recognized as a triumphant accomplishment in an area so dependent on investment bankers to others. Bottom line is that the $90 million in tax incentives will result in probably near double that in paid income taxes over the next 20 years. It’s a win-win for NJ”
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