10B — March 30 - April 12, 2012 — Commercial Office Spotlight — Mid Atlantic Real Estate Journal
www.marejournal.com
NAI F ENNELLY By Gerard J. Fennelly, NAI Fennelly Princeton Office Market Report
T he Greater Princeton Area experienced growth in the financial market,
GROWTH PER SECTOR
Net Absorption Service/Bus./Legal
Govt/Edu./Non-Profit
Bio Internet/Software/Electronic/Fiber Medical Sports & Entertainment
consumer and pharmaceu- t i ca l ar eas t h i s y e a r. No v o No r - disk leased 550 , 000 s / f at 800 Scud- d e r ’ s M i l l Rd., Church
First Half 2011
180,587
4,500 23,200
67,603 506,711
50,600 46,304
37,660 17,950
3,268 8,275
Second Half 2011 167,854
stronger results with 400,603 s/f of growth occurring by Novo Nordisk, Church & Dwight, Amicus, Abbott Labs, Princeton Biomeditech, Oncobiologics, and Integra Life Sciences. The internet, software, media and electronics category showed positive signs with 96,904 s/f of growth, this was due in part to the expansion of Princeton
Power Systems, and finally, medical grew by 55,000 s/f for the year. Government, educa- tion and non-profits reduced by 27,500 s/f, exemplifying the reduction and consolidation into state owned real estate. The average growth per transaction edged up to 3,600 s/f (excluding Church &Dwight and Novo Nordisk), up 22%
from 2010 while the velocity of transactions has increased by 9% in the second half of 2011. This indicates a rebuilding of the economy with start ups in biopharma, sports and enter- tainment, and the migration of companies from other parts of the world. We anticipate, based on a continued slower rate of devel-
opment and slowly increasing demand, that the absorption rate will be positive for 2012. Service Business Legal Fi- nance: This sector accounted for 347,629 s/f of actual growth. The financial and service sector markets are finishing a major contraction. Blackrock reduced from 400,000 s/f of office space in Plainsboro to 165,000 s/f in West Windsor, and has recently added 45,000 s/f. Amerihealth (33,000 s/f) relocated and con- solidated two locations to be- come one of the anchors for the Matrix Corporate Center in Cranbury. Bi oPharma Techno l ogy : Pharmaceutical companies completed 39 of the 190 lease transactions or 20% of the ve- locity for the year. Novo Nordisk leased 500,000 s/f of class A office space, being delivered in the former Merrill Lynch head- quarters building in Plainsboro. Amicus consolidated into new facilities at Cedar brook for 50,000 s/f. Celsion, Beacon and Antarres each leased 10,000 s/f of class A office along the 295 beltway. Oncobiologics, Provid and Aeustus migrated from North Jersey, leasing a combined s/fage of 35,000 s/f. Migration also showed up from Japan, Switzerland, and China with small pharmaceutical re- locations: Tsumara, Geistlich, Simcere, Nnit, Microlabs, and Tekseed leasing 14,000 s/f col- lectively. Transave, on the heels of being acquired in 2010 by Ismed, leased 27,000 s/f of office/lab space. Transave is researching and delivering in- halant delivery systems to treat lung cancer. Princeton contin- ues to be a preferred location for international companies due to its central east coast location, proximity to Pharma industry HQ’s and the region’s international recognition. The major research and develop- ment centered on cancer and diabetes continue to produce bio company growth. Medical: Growth in the Medi- cal Industry showed consistency in growth of 55,600 s/f over the last twelve months. Doctors are experiencing a backlash from Obama Healthcare, leading to continued on page 20B
& Dwight leased 250,000 s/f at Princeton South, in Ewing and Blackrock added 45,000 s/f onto their current 160,000 s/f of of- fice space at University Square. The Biopharma sector reported Jerry Fennelly
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