B — February 22 - March 14, 2013 — Commercial Office Spotlight — Mid Atlantic Real Estate Journal
www.marejournal.com
C ommercial O ffice S potlight
By Miles Berger, The Berger Organization Newark office market gaining momentum
T
he office market in New Jersey contin- ues to be impacted
Jersey’s largest city’s grow- ing reputation as a business destination. Fromanoffice leasing stand- point, activity in Newark has picked up measurably over the past 18 months. We are seeing more tenants request- ing showings, expressing se- rious interest and ultimately signing leases, especially in the city’s downtown area. Our Military Park Building (60 Park Place) is a prime example of that trend. In 2012, the building reached 99 percent occupancy after 70,000 s/f of new and renewed leases, rising from 75 percent
occupancy in the past four years since we acquired the building. Our other Newark office properties, including 50 Park Place and 570 Broad St., have seen similar activity. One interesting trend we are seeing in Newark, and throughout New Jersey, for that matter, is an influx of non-conventional tenants signing leases in traditional office buildings—everything from health, critical care and outpatient operations, to technology companies repur- posing existing spaces, to schools. For example, Citizen Schools, a national nonprofit
organization that partners with middle schools to ex- pand the learning day, leased 3,000 s/f for its New Jersey volunteer and administrative offices at 570 Broad St. in Newark. And Newark Prep, a new charter high school, opened at 570 Broad St. in the fall of 2012, occupying four floors totaling 60,000 s/f in the 15-story, 200,000 s/f building. On the corporate site, a growing number of companies have been moving from the suburbs into Newark, a clear sign that the city continues to evolve as a metropolitan center where people come to work and live. Several major projects are underway that will create a growing day- time population in the city, among them the new North American headquarters for Panasonic, which Matrix Development Group and SJP Properties are developing at One Riverfront Center (a relocation from the suburbs, incidentally). As a response to this de- mand, our organization and others have also enhanced our portfolios by continually adding value to our proper- ties, which has been central in attracting new tenants. Even more importantly, this effort has fostered tenant retention, a key to success in the current and any market. Combined with its great location, Newark’s progress has contributed to a current leasing volume that is outpac- ing other New Jersey sub- markets, a clear step in the right direction for a city that is on the cusp of becoming a true metropolitan center. Over the past several years, with major corporate moves by Prudential and Panasonic, among others, as well as con- struction of the Prudential Center arena and the grow- ing impact of such venues as NJPAC, Newark is well on its way to fully regaining its past stature. We believe that in the next five to 10 years, Newark will be recognized as one of New Jersey’s most exciting urban communities, and the city’s commercial real estate mar- ket will continue to benefit from that recognition. Miles Berger is chair- man and chief executive officer for The Berger Or- ganization. n
by the slow economic re- covery—the state’s lat- est reported unempl oy - ment rate is 9.6 percent, compared to the national
Miles Berger
rate of 7.7 percent. The office market in Newark, however, has continued to gain mo- mentum throughout the past year, fueled by its prime geo- graphic location and by New
570 Broad Street
The Berger Organization
Military Park Building
570 Broad
Robert Treat Center
The Fireman’s Insurance Building
Providing Premier Office Space in Newark’s Finest Business Districts
Newark is poised to experience unprecedented growth and renewal, as evidenced by amarked increase in tenant commitments and thewealth of new projectsplannedorunderwayinthisvital,vibrantcity.TheBergerOrganization continues to play a key role in supporting Newark’s progress and enhancing its position as New Jersey’s destination of choice for businesses, today and into the future.
Berger Organization www.bergerorg.com
For more information contact: "RENDAN "ERGER AT s BRENDAN BERGERORGCOM
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