18A — May 25 - June 7, 2018 — M id A tlantic
Real Estate Journal
www.marejournal.com
M id A tlantic R eal E state J ournal
Event focused on development, leasing and investment Industry experts address market trends at Mid Atlantic Real Estate Journal’s NJ office conference I
into living rooms! The lines between public and private spaces are blurred and this provides an opportunity to join the “sharing economy” and fig- ure out how to integrate what is important to the community into the space. Not only is co- working transforming design, so is the need for personaliza- tion. In order to personalize a space, technology can help with state-of-art fitness machines that record, analyze and share performance and progress. Me- dia lounges can offer Bluetooth connected speakers; virtual theatres allow you to plug in from a mobile device where you can stream video and watch a sense of community, and a “24-7” lifestyle experience. The adage “location, location, location” also rings true when developing office product, and the Garden State’s proxim- ity to Manhattan is among its benefits, Cohen added. “In the past, a large corporation would build a suburban campus and the labor force was guaranteed to come.” “If you look at sub- urban campuses built many years ago and tried to create a work-play setting there today, it wouldn’t work. The success of these projects depends on location, highway access and demographics.” The Value of Tenant Improvements “The Value of Tenant Im- provements in Securing a New Lease and Retaining Tenants,” included moderator Jan Alan Lewis , a member of Cole Schotz P.C. , along with panel- ists Jerry L. Barta , VP/direc- tor of leasing andmarketing for Alfred Sanzari Enterprises ; Nick Shears , director of leas- ing and marketing for Hugo Neu Corporation ; Kenneth Latal , outreach team man- ager for New Jersey’s Clean Energy Program ; and Tom Hofmann , project manager for DMR Architects . Barta cited the importance of collaboration between ten- ant and landlord when ad- dressing build-outs and other improvements. “As a landlord, it’s important to understand what each tenant needs and wants,” he said. “While there
Netflix; iCafes with USB ports and other web-access features are now common practice. PET FRIENDLY: It’s a pet revolution! Pet ownership is on the rise with more than 70% of apartment renters owning either a cat or dog. Dog wash stations, pet parks, exercise stations, concierge services, even dog treats in the lobby, are becoming the norm. Mul- tifamily Executive reported that AvalonBay hosts Doggie Paddle pool parties, Yappy Hours and pet CPR classes to bring pet lovers together in their community. Richard Gacek is the principal designer of Gacek Design Group. Beyond individual tenant spaces, building amenities play a role in attracting and retaining tenants. Increas- ingly these perks are going beyond basic fitness centers and cafeterias, panelists said. Ample parking, shuttles to public transportation, shared conference facilities, concierge/ shipping centers, expansive outdoor spaces, data centers, and generators to minimize disruptions following pow- er outages increasingly are sought-after by companies, as are lighting and HVAC upgrades that keep workers comfortable and productive. “Wellness zones” ranging from quiet places for meditation to nature-inspired décor and energy-efficient sensor lighting also are trending. are some common denomina- tors, every tenant has different requirements specific to how their company operates,” he said. “It’s our job to listen to the tenant, understand what they want, and come up with a plan in conjunction with the architect that satisfies the ten- ant’s needs.” Companies use office space not only to run their business, but to attract talent and retain existing employees, according to Barta. “Creating an environ- ment that’s inviting and con- ducive to running a business is a significant function of office space today. If employees are productive and happy, that’s a positive for the business owner as well as the landlord.”
SELIN, NJ — Office ten- ants’ needs have changed dramatically over the last several years. The shift to com- munity-centered, “live-work- play’ environments is signaling a new era in office building utilization that is here to stay, according to industry experts that recently participated in the Mid Atlantic Real Es- tate Journal’s (MAREJ) 4th annual New Jersey Office Conference. The event, which took place at the APA Hotel Woodbridge, brought together more than 100 of the region’s top real estate professionals, along with three panels of high-level commercial leaders representing all facets of the Garden State’s office market. Evaluating the OfficeMarket During Q1 2018, 2.2 million s/f of office space was leased in Northern and Central New Jersey; the overall availability rate in those markets for all of- fice types was 19.7%, the lowest it’s been since 2Q 2009, accord- ing to David Simon , executive managing director and market leader of Colliers Interna- tional . Simon moderated a discussion entitled, “Market Update: An Evaluation of the Office Market and What Ten- ants Require Today,” which fea- tured panelists Robert Rudin , vice-chairman of Cushman & Wakefield ; Kevin Collins , managing director of asset management and finance for C&K Properties ; Jonathan Schultz , co-founder of Onyx Equities LLC ; Michael Berg- man , principal and president/ CEO of Bergman Real Estate Group ; and Jeff Garibaldi Sr., president of The Garib- aldi Group. While there is no “one-size fit all” approach to meeting office tenants’ requirements, panel- ists said the Millennial and Generation Z workforce is hav- ing a dramatic impact on how office space is developed and used; landlords and property owners will continue to rede- velop and rebrand properties to accommodate this younger generation of office user. The experts also discussed New- ark’s emergence as a regional business hub, and the City’s bid as a location for Amazon’s HQ2 headquarters. “Newark was a logical short list choice for Amazon due to the presence of two major train stations containing the Metro liner, NJ Transit and the Path lines in combination with an
Shown from left: Kevin Collins, managing director of asset manage- ment and finance for C&K Properties; Jonathan Schultz, co-founder of Onyx Equities LLC; David Simon, executive managing director and market leader of Colliers International; Michael Bergman, principal and president/CEO of Bergman Real Estate Group; Robert Rudin, vice- chairman of Cushman & Wakefield; and Jeff Garibaldi Sr., president of The Garibaldi Group.
International Airport, major road networks and one of the most robust fiber networks in the Country,” said Rudin, “not to mention over 40,000 students at the local colleges. When you combine the in-place infrastructure with the number of new development projects, the evidence for a major re- surgence is in place. Four new residential developments in the Washington Park area, a new Dormitory on Halsey St., the completion of Teachers Village, M&M choosing the Ironsides project for its corporate office and a new Marcus Samuelsson restaurant are but a few of the new developments. Thousands of new housing opportunities now stretch along the path line from Newark to Jersey City and into New York City. Lotus Equities and SJP Properties have put stakes in the ground for the development of several million s/f of new office space.” Panelists agreed that the New Jersey Economic Devel- opment Authority’s Grow NJ Assistance Program has been a key driver for the state’s of- fice market. Grow NJ is a job creation and retention incen- tive program that strengthens New Jersey’s competitive edge against tax incentive programs in surrounding states. Busi- nesses that are creating or retaining jobs in New Jersey may be eligible for tax credits. Mixed-Use Projects: The Future of Office Development A panel entitled, “Critical Capital Markets & The Future of Office Development,” was
moderated by Jeremy Neuer , executive VP of CBRE . Panel- ists included EdwinH. Cohen , principal partner of Prism Capital Partners ; J ose R. Cruz , senior managing direc- tor of HFF ; Fahri Ozturk , VP of investment for Marcus & Millichap ; Timothy Touhey, CRE team leader for Inves- tors Bank ; and Roger Smith of Gensler . Walkable mixed-use com- munities that bring together retail, office and housing rep- resent the future of commercial development, according to the panelists. Illustrating this trend, they cited Prism Capital Partners’ ON3 – the 116-acre, former Hoffmann-LaRoche campus redevelopment span- ning the Township of Nutley and City of Clifton. The project is positioned to set a benchmark inWalking Urbanism, integrat- ing office and R&D facilities, recreational, hospitality and wellness options. “We saw this site as the ultimate ‘blank palette’ to cre- ate something truly special,” Cohen said. “ON3’s location, nine miles from Manhattan and located directly in the cen- ter of two major north/south highways, on a highway where 170,000 cars pass each day, presented an opportunity to de- velop an ideal ‘live-work-play’ lifestyle hub. We are confident that upon completion, ON3 will be the greatest mixed-use development in Northern New Jersey.” Successful mixed-used proj- ects are those that generate
JOIN MAREJ & Industry Experts on Wed., May 30 Th FOR THE 3 RD ANNUAL PHILADELPHIA MULTIFAMILY CONFERENCE Visit www.marejournal.com for more information
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