Real Estate Journal — Brokerage Directory — July 27 - August 9, 2018 — 13C
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B rokerage D irectory Savills Studley Report Northern New Jersey office sector Q2 2018
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headquarters. A few are adding amenities and services that enhance the comfort of their employees and in some cases set a new standard for sustain- ability, wellness and the “agile” workplace. Looking Forward Looking out past 2018 to 2019, the future of Grow NJ, which was a major tool de- ployed to keep businesses within New Jersey, looms large. The tax credit, which played a major role in tenant retention during the Christie Administration, sunsets in June of 2019.
campus in Montvale. Metroburb Blueprint The blueprint for campuses that have been successfully re- purposed, involved bringing ur- ban amenities and a live/work/ play settings to the corporate campus. Bell Labs, which has been described by its developer Ralph Zucker, president of Somerset Development as a “metroburb,” has become the model for success. The devel- oper is essentially building a village on the sprawling 100- acre grounds. Many of the most recent tenants to sign leases will add to the conveniences
that businesses and residents can access — including a florist, Montessori school and salon. Vision Real Estate Partners and Rubenstein have also been successful at recapturing com- plexes. Their latest project will be quite an undertaking: repo- sitioning the 30-acre former Morris Corporate Center IV, on Interpace Parkway in Parsip- pany. The development, to be called Bi-Coastal Latitude East &West, will have 700,000 s/f of space. The project aims to bring connectivity and walkability to the sprawling campus. They will link two pods of intercon-
nected buildings via an atrium and entryway with a staircase that connects the two-building pods. As tenants traverse the walkway they will view artistic elements and select from cui- sine options that will transition from an East Coast to a West Coast time zone. Indoor and outdoor amenity space will be added. Cutting Edge Corporate HQs These developers are adding extensive amenities in a bid to compete with properties set in more urban settings. Some of the most innovative build- ings are coming in company
nother Shoe Drops The last thing North- ern New Jersey needs
i s an o t h e r vacant sub- ur ban c o r - porate cam- pus. Another hole will be opening up this summer, t hough , as the Toys “R”
Ralph Zucker
Us complex in Wayne is poised to shut down. The company will leave behind a sprawling com- plex with multiple buildings totaling more than 900,000 s/f located on a secluded 200-acre lakefront site. Northern New Jersey can make a legitimate claim to being the starting point of the corporate campus – AT&T Bell Labs opened its first campus in 1942. It took a while for the concept to take off, but construction peaked in the 1980s. Just under 98 msf of Northern New Jersey’s office stock was constructed in the 1980s, nearly the same amount as currently exists in Lower Manhattan. The current avail- ability rate for this core part of the market is well over 20%. The struggles of the sub- urban office campus can be attributed to many differ- ent things: millennials prefer more dynamic urban centers, technological advancement the reduced need for clerical work- ers, the shift to online sales has thinned the ranks of call cen- ter employees. High housing costs and taxes, particularly compared to Sunbelt states, may have given companies and households added cause to move elsewhere. Additionally, the majority of the complexes are now 20 to 40 years old, built in a pre-IT era. Proposals for the Toys “R” Us complex include affordable housing or residential uses. However, concerns from local residents about escalating taxes and congestion can often hinder redevelopment propos- als. In Park Ridge, the mayor resigned after a failed bid to turn the 37-acre Sony office park into affordable housing. New Jersey has a long list of other corporate compounds that are either still sitting vacant, or are in the process of being recaptured. Examples include: Warren Corporate Center, Hoffman-Roche's cam- pus in Nutley and smaller buildings like 1 Lake Street and the former Mercedes-Benz
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