Real Estate Journal — New Jersey — August 15 - 28, 2014 — 7B


M id A tlantic

C entral N ew J ersey Redevelopment projects, expansions, tax incentives drive activity Colliers Q2 report: North, Central NJ office market undergoing metamorphosis N EW JERSEY — The commercial real es- tate landscape in the lab space, 235 townhomes, a community center, and open space.

its new headquarters. Further, the New Jersey Economic Development Au- thority announced that three additional office occupiers were awarded 10-year tax incentive packages. They were given to: JP Morgan Chase, to retain 2,612 jobs and create 1,000 jobs in the state; Unilever, for the renovation of its 420,000 s/f Englewood Cliffs headquar- ters; and RBC, for the renova- tion of its 207,000-s/f Goldman Sachs building in Jersey City. Celgene, a biotechnology company that manufactures drug therapies for cancer and

inflammatory disorders, broke ground on the largest build- to-suit of the quarter totaling 550,000 s/f, at the former Cela- nese campus at 80-90 Morris Ave. in Summit. The building will complement the 400,000 s/f office building already at the site. “This continued wave of redevelopment and expansion demonstrates the long-term commitment that occupiers are making to North and Central New Jersey,” said Robert R. Martie, Executive Vice Presi- dent NJ Region for Colliers International. n

as landlords withdrew sev- eral spaces from the market, including: 81,326 s/f at 504 Carnegie Center in Princeton; 77,000 s/f at 5000 Hadley Rd. in South Plainfield; and 47,486 s/f at 3600 Rte 66 in Neptune. The largest redevelopment project was announced in the second quarter by The Rock- efeller Group, in conjunction with K. Hovananian Homes, will redevelop the 147-acre, 28-building Honeywell Cam- pus (101 Columbia Rd. in Mor- ris Twp.). Upon completion, the 1.2 million s/f campus will include 900,000 s/f of office and

The second largest redevel- opment in the second quarter, completed by Dress Barn’s parent company Ascena, reno- vated the 145,00 s/f former Footstar headquarters building at 933MacArthur Boulevard in Mahwah and added on a 50,000 s/f expansion, connected by an enclosed walkway. Ascena re- ceived a Grow New Jersey 10- year, $32.4 million tax credit incentive and is currently seek- ing LEED gold certification for this redevelopment project on

North and Central New Jersey office markets is undergoing a metamorphosis, with major occupiers expanding, consoli- dating, or investing in their own sites, according to new research from Colliers Inter- national . In fact, two large- scale redevelopment projects, a major expansion, and tax incentive grants played a sig- nificant role in this sector as the overall demand for space remained steady in the second quarter of 2014. The overall availability rate for Northern and Central New Jersey was 20.3% at the end of the second quarter, up slightly from 20.2% from the previous quarter. Net absorption was negative 729,339 s/f, a sig- nificant change from 560,125 s/f of positive absorption last quarter. This decrease nearly matched the negative 738,696 s/f of net absorption experi- enced in the fourth quarter of 2013. Despite negative absorption, the overall average asking rent for Northern and Central New Jersey combined increased to $24.07/s/f in the second quar- ter of 2014, up slightly from $23.89/s/f in the first quarter. This is only the second time av- erage asking rents have broken $24/s/f since the third quarter of 2012. The average asking rent for Northern New Jersey remained at $24.90/s/f in both the first and second quarters of 2014, while it increased in Cen- tral New Jersey to $23.10/s/f, up slightly from $22.79/s/f in the first quarter. This increase was attributed primarily to the reintroduction of a 301,800 s/f building at 211 Mount Airy Rd. in Basking Ridge. The property, formerly occupied by Avaya, was sold to Onyx Equities, which is doing major renovations and brought the asset back on to the market as a multi-tenant building for $27.50/s/f. Northern New Jersey re- ported approximately 1.8 mil- lion s/f of leasing activity in the second quarter, up from approximately 1.6 million s/f in the first quarter (although down from approximately 1.9 million s/f a year ago). Central New Jersey’s leasing activity increased to 968,534 s/f, up from 810,156 s/f last quarter, but paled in compari- son to 1.5 million s/f a year ago,


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