the staff of the Ridgewood blog
Woodcliff Lake NJ, in a move that may defy the growing trend of companies moving away from suburban office spaces, an office building in the affluent suburb of Woodcliff Lake has been sold for $9.8 million. The sale marks a nearly 19% increase in value compared to its 2014 sale price of $8.25 million, signaling some resilience in suburban commercial real estate.
Real estate services firm CBRE, which oversaw the sale of the property at 470 Chestnut Ridge Road, cited the building’s strategic location and recent upgrades as key factors driving the sale. The 53,730-square-foot office building is fully leased to engineering and construction firm Kiewit, serving as the company’s regional Northeast headquarters. Kiewit has yet to comment on the transaction.
A spokesperson for CBRE confirmed that the property was sold to an investment firm based in Monsey, New York, though the buyer’s identity has not been disclosed. Keystone Property Group, the previous owner, had held the property for a decade before making the sale.
“470 Chestnut’s location in one of New Jersey’s premier towns, coupled with Kiewit’s recent upgrades to the lobby, common areas, and building systems, made this an attractive opportunity for the buyer,” said Jeff Bunne, Vice Chairman of CBRE.
The Shift Away from Suburban Offices
The sale of this Woodcliff Lake office space comes at a time when many businesses are moving away from suburban office parks, driven in large part by the work-from-home trends that took off during the COVID-19 pandemic. In addition to remote work, companies are increasingly favoring urban office spaces, with many relocating to bustling centers like Hoboken and Jersey City, just across the Hudson River from Manhattan.
This shift marks a reversal from the 1980s, when many corporations left cities in favor of suburban office complexes, especially in areas like Bergen and Morris counties. Now, urban hubs are more attractive for their proximity to talent and transportation networks.
Several major corporations have recently opted for smaller, urban office spaces. Deloitte and Sanofi have downsized their operations in Morristown, while Unilever plans to move its headquarters from Englewood Cliffs to Hoboken in 2025. BMW is also reducing its footprint in Woodcliff Lake, shrinking its North American headquarters campus by 20 acres.
In addition, many former office parks across North Jersey are being repurposed for new uses, including warehouses, housing, and retail spaces.
Suburban Strongholds Still Exist
Despite the widespread trend toward urbanization, some companies remain committed to suburban office locations. Samsung, for instance, is moving its North American headquarters from Ridgefield Park to Englewood Cliffs in 2024. Party City has based its headquarters in Woodcliff Lake since securing a tax break in 2021, while financial technology company Fiserv recently relocated 2,000 employees to Berkeley Heights.
In a significant boost to New Jersey’s suburban office market, Kenvue, a spinoff of Johnson & Johnson, announced plans to move its Neutrogena employees from California to a sprawling 290,000-square-foot facility in Summit by 2025. The new headquarters, which will serve over 3,000 employees, will occupy a 46-acre campus formerly owned by pharmaceutical company Celgene.
As suburban office markets evolve, the sale of 470 Chestnut Ridge Road may indicate that there is still value to be found in New Jersey’s suburban commercial properties, especially for companies seeking the right mix of location and modern amenities.
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That is a loss in real terms. Gold is more than double what it was in 2014. It would have to sell for 16.5 million Federal Reserve notes just to break even.
I could see it now ,more housing
Your replacements need somewhere to live.
illegal immigrant housing
The Hasidim will build a school there & everybody will go crazy.
If it becomes a school then its off the property tax rolls and the rest of the town will have to make up for the loss of revenue
Look what the is on the table the government Is looking to take over the Sheridan crossroads for one year to put in migrants with families. As we speak, they are looking how they can Convert the kitchen into a cafeteria style, Don’t put the past them, because right over the border in Rockland County they’re taking over motels. And some of the owners are are getting very greedy just like what they’re doing in New York City.
see also Glen Rock Basketball…..