This week, Onyx Equities announced a 39,200 square foot lease with Sony Music at The Meadows. They will occupy the top two floors of 301 Route 17 North in Rutherford, relocating from 210 Clay Avenue in Lyndhurst. Sony Music’s move from their long time, Mack-Cali owned home represents three trends that I have written about previously and that we continue to see driving the market: amenities, incentives and efficiency.
Onyx Equities has infused $3.4m in capital into The Meadows recently and that investment has paid off. What makes the building stand apart from others in the Meadowlands is the amenity package.The lobbies and cafeteria have recently been upgraded, the building has covered parking, a fitness center, a shuttle to Secaucus Junction, and a building common conference room (one of my favorite amenities).The buildings’ façade was also recently refinished, giving the buildings a more modern look.
Sony Music also received a $1.6m incentive package for bringing 50 new jobs from New York City through a Grow NJ grant. While primarily relocating from less than two miles away, they were able to use the incentives to the tune of approximately $40.00 per square foot. While they could have received more for going to a more transit oriented location, it’s still impactful.
Finally, Sony Music is downsizing from their current location and increasing their headcount as evidenced by the jobs being added from New York. While I wasn’t involved in the transaction, it does seem that they went to a new, more efficient workplace standard.
Ironically, this group was relocated from New York ten years ago and fought hard to stay in a suburban environment.There must not be many millennials on the decision making committee!
From the outside looking in, it appears that Sony Music is using the state incentive money to not only improve the quality of life for their employees by moving to a building with better amenities, but also by saving money by moving to a more efficient space. By moving less than two miles from their current location, they didn’t impact the commute for their existing workforce and those coming from New York can use the shuttle to the train, if needed.