NEWARK, N.J. – NJ TRANSIT has renewed its commitment to the City of Newark by signing a 25-year lease to establish efficient, modern offices in Two Gateway Center, as announced in a prepared statement released on July 18, 2023.
The lease agreement was signed after a competitive procurement process, unanimous approval of the Board of Directors and authorization to proceed by the Office of the State Comptroller. The facility will have a direct pedestrian connection to Newark Penn Station, the state’s busiest intermodal transit hub.
“NJ TRANSIT’s new headquarters will provide a more efficient and collaborative workspace for NJ TRANSIT’s employees who design, build and operate our transit system,” said New Jersey Department of Transportation Commissioner and NJ TRANSIT Board Chair Diane Gutierrez-Scaccetti.
“NJ TRANSIT has always been committed to keeping our presence in Newark, the city which has been our home since our creation more than 40 years ago,” said NJ TRANSIT President & CEO Kevin S. Corbett. “NJ TRANSIT has now negotiated a lease agreement that provides the best value for New Jersey’s taxpayers, for our customers, and our employees. This new headquarters provides the modern office environment required to properly run the nation’s largest statewide transit system.”
NJ TRANSIT’s current headquarters at Penn Plaza East is more than 30 years old and would require approximately $120 million in repairs and renovations over the next six years, including complete overhauls and replacements to elevators and the HVAC and other systems. The repairs and reconstruction would take several years, and require temporarily relocating employees, significantly disrupting the work environment, productivity, and the efficient management of the transit system.
NJ TRANSIT’s 25-year Two Gateway lease includes approximately 407,000 square feet of space in open floor plates which will be built to suit. Two Gateway has just been newly renovated, and the lease allows the potential to expand or contract NJ TRANSIT’s footprint as needed.
Two Gateway Center provides direct access to Newark Penn Station via the Gateway Center’s pedestrian bridge, as well as Gateway’s new street level entrance just across from the station’s historic waiting room. The Murphy Administration has committed more than $190 million to renovating and restoring Newark Penn Station to again be the crown jewel of the state’s transportation system, serving as a grand entryway to New Jersey.
Onyx Equities, the owner of Two Gateway, has agreed to provide $130 per square foot toward design and construction, currently valued at approximately $53 million, specifically to meet NJ TRANSIT’s needs and create a modern work environment, customized to maximize productivity and efficiency. The new, up-to-date work space also will help NJ TRANSIT attract and retain professional staff, and will allow consolidation of administrative employees from other locations throughout the state.
NJ TRANSIT expects to occupy the new, Two Gateway Center headquarters by the end of 2024. The disposition of the current, Penn Plaza facility is still to be determined.
A copy of the lease can be viewed at njtransit.com/hqlease.
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