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Division of Property Management and Construction

Questions And Answers About Leases With The State

How Many Leases Does The State Have?
As of July 2012, the State has 291 leases in New Jersey comprising approximately 7.6 million sq. ft. of office space and approximately 1.9 million sq. ft. for other State uses.

Where Are They Located?
The State leases property statewide and, in some cases, nationwide.

What Type Of Space Does The State Lease?
The State leases space for all departments of State government. These consist of a wide variety of spaces ranging from administrative office and client-service space (Motor Vehicle agencies, Unemployment offices, Parole offices, etc.) to State Police Barracks, courtrooms and spaces for many other specialized uses.

What Is The Typical Size Of Space The State Leases?
State leases currently range from 20 square feet for DEP air monitoring stations to close to 400,000 square feet for administrative office space. With the exception of leased properties in Mercer County, Newark, and Camden, and consolidation facilities elsewhere, the majority of leases are for spaces under 10,000 square feet.

I Have A Property That I Would Like To Lease To The State. How Do I Do That?
In accordance with the competitive process developed as a result of N.J.S.A. 52:18a-191.1 et. seq and N.J.A.C. 17:11, the DPMC advertises for its space needs. Ads appear in the Commercial Real Estate Wanted sections of newspapers statewide. Ads are usually run on Sundays and Mondays in the Star Ledger. Ads are also run in regional local newspapers. A listing of current advertised requirements also is available on the DPMC Home Page. Respondents capable of meeting the square footage requirements in the specified geographic area will be sent proposal packages.

Do I Need To Respond To The Ad To Be Eligible?
The DPMC maintains a database of available properties. This database consists of properties submitted in responses to previous advertised requirements as well as properties submitted to the State unsolicited. Anyone interested in having a property included in the database may do so by completing a Property Profile Form (pdf 12k) and submitting it to DPMC. Properties are kept in the database for a year at a time, after which they are deleted, and if still available must be re-submitted. Any property in the database that meets the size and locational requirements of the particular need is automatically eligible to receive a proposal package.

If I Am A Realtor With An Exclusive Listing On A Property, Am I Eligible To Present A Property To The State?
Not necessarily. The State requires a separate letter from the owner of a property designating a specific individual as the one authorized to negotiate for an owner. As listing agreements differ considerably and bestow different authorities to Brokers and/or salespeople, a listing agreement is not sufficient to qualify a Broker to negotiate.

If A Realtor With a Listing Presents A Property To The State, Will The State Pay A Commission?
No, the State is prohibited by case law and certain statutes from paying commissions.

Does The State Work With Licensed Real Estate Brokers?
The State will work with brokers or salespersons provided they have the required authorization from the owner.

What Is Included in the Proposal Package?
The proposal package is a series of forms and documents detailing the needs of the particular programs and the terms and conditions being requested. Standardized response forms are also included.

Will I Be Given A Chance To Negotiate After I Submit My Proposal?
In most instances, yes. This is a competitive process. The State may request clarifications on the initial submission of proposals and, after further negotiation, conclude with "best and final" proposals.

How Is The Final Decision Made On Who Will Be Awarded The Lease?
The DPMC makes a recommendation based on the proposal that is the most cost effective for the State in meeting the particular space requirement. This recommendation is then subject to approval by the State Leasing and Space Utilization Committee which consists of the State Treasurer, the President of the New Jersey Senate, and the Speaker of the New Jersey Assembly or their designees. The committee meets in open session approximately every two months. The State may not enter into a lease without the committee's approval.

If Selected, How Long Does It Take Before I Have A Signed Lease?
A lease can be executed after approval by the State Leasing and Space Utilization Committee.

When Can I Start Receiving Rent?
Rent would commence after occupancy by the State.


Last Updated: Monday, 06/10/19