When it comes to Real Estate Investing. Downtown Newark, NJ may not even be on the shortlist. Historically it has suffered from a very bad image, population shrinkage, and a major shift in business focus. However things in recent years have changed dramatically with a major increase in residential and commercial development, today we show why his has happened and will continue.
History in Brief
Newark has long been the largest city in New Jersey, it was formed in 1666 and has long been the center of manufacturing, shipping, and business. It boomed from 1800 on the back of the nation’s leather supply until its decline post world war two when it was rocked by riots and suffered population loss. It has suffered markedly as America moved from being one of the largest global manufacturers to a service-based economy.
White collar job growth
In recent decades the population of Newark has been on a steady rise, along with increasing incomes, as it has changed from a blue-collar mecca to a white-collar hub.
More than 100,000 people commute to Newark every day (1) making it the state’s largest employer with massive growth in service-based jobs. These people work in Newark and are now moving there as more apartment are built.
In 2021 Newark is the third biggest insurance center in America. Some of the biggest employers in Newark downtown are Prudential Financial (insurance) Audible (amazon) NJIT(university) and NJ Transport (Transport). In the downtown sub-market, 71.75% (2) employees are white collar.
In the last decade the Newark downtown area has seen a major increase in development. From Commercial offices to mixed use residential. Some of the current projects are (3):
- Bell building – Residential tower – 265 units.
- Vibe – Residential tower – 256 units
- 155 Washington – residential tower – 249 units.
- Halo – two 40 stories towers – 594 units.
Population and Income
The Downtown area is a different sub-market to the other wards of Newark. It’s growing at a faster rate and has a high average income of $47,412.00 (3) it’s population is growing at a rate of 1.3% (4) annually. In recent years it has seen major development of residential buildings to encourage this shift.
Newark is the Home of many American-based corporations, a growing insurance company base, and as 2018 has seemed to turn the corner with residential projects.
Downtown Newark is a neighborhood in transition but the addition of a full-service wholefood supermarket, the continued shift to more technology, financial and service jobs, and further incentives will all surely help.