Teva now knows where it's headed in New Jersey, but it’s still got plenty of work to do before it can move into its new U.S. headquarters.
The Israeli pharma, which said earlier this month that it would move its U.S. home from Pennsylvania to the Garden State, has inked a 12-year lease for a 360,000-square-foot office building in Parsippany, NJ.com reports.
The office space won’t come cheap. The generics giant will reportedly shell out about $9 million in rent as part of a deal that “took a lot of give and take on both sides,” according to Harvey Rosenblatt, founder of the real estate developer that owns and manages the property.
The fact that Teva was already a tenant in the building, which is part of the MCC Blue office complex on Parsippany’s Interspace Parkway, helped seal the deal.
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On top of the hefty rent sum, Teva will be undertaking a massive construction project. “It is an astronomical build-out process,” Rosenblatt told the publication.
Thanks to an incentive package from New Jersey, though, Teva has the funds to get it done. To lure the pharma from its longtime Pennsylvania headquarters in North Wales, the state offered up $40 million in tax credits.
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Teva’s move comes as the company works to consolidate sites and increase efficiency as part of its $3 billion cost-cutting drive. The plan, which will claim 14,000 jobs when all is said and done, had already affected Teva’s Pennsylvania workers before the company locked in on a relocation.
But Teva may have been weighing a switch long before it actually pulled the trigger. The company had been in touch with state officials over the last few years, and it had “various interactions” with the New Jersey Economic Development Authority from 2009 on, a public affairs director at the authority told NJ.com. The state also approved a tax credit package for Teva in early 2012, but Teva later withdrew its application.