20C — February 28 - March 13, 2014 — Commercial Office Spotlight — Mid Atlantic Real Estate Journal
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C ommercial O ffice S potlight
EWARK, NJ — Busi- nesses seeking to lo- cate or expand in New Content offers complete details of availabilities Newarkofficespace.com launches new web site N
2929 Expressway Drive Cushman & Wakefield sells Hauppauge prop.
Jersey’s largest city have a new resource: NewarkOfficeSpace. com, a provider of premier office space in Newark, has launched a new web site. The site currently lists avail- abilities at such class A of- fice properties as 570 Broad Street, 765 Broad Street, the Fireman’s Insurance Buildings at 10 Park Place, the Robert Treat Center at 50 Park Place, and the Military Park Build- ing at 60 Park Place. Each list- ing includes complete details and four-color photos of each availability, its building and the location within Newark. Other features of Newar- kOfficeSpace.com include a timely blog, providing news and updates of the properties and market activity. Details and information about the City of Newark and its features as a growing destination for busi- ness are also available. n The evolving office model is not for everyone. The living room concept has met with resistance from the legal pro- fession for example. Lawyers still need private offices; if for nothing other than a privacy issue with clients and sensi- tive documents. However, even attorneys are parting from tradition. Secretaries no lon- ger take dictation, lawyers do much of their own typing, file rooms are shrinking or gone completely, and a receptionist will greet clients, handle docu- ment prep, social media and technology issues. Those adding to the vitality of the office market are the technology, energy and social media sectors. Yahoo recently announced plans for major office space acquisitions; but guaranteed these will be not be your mother’s recipe for space. Add in the medical sector coupled with the afore- mentioned lack of quality inventory and those owners postured with adaptive space in select locations will fare well. The suburban locations are facing new challenges to attract their tenants; not in- cubicle walls; but are found on one’s smartphone, pad or laptop wallpaper. Office size and location has lost some of its status luster.
2929 Expressway Drive
HAUPPAUGE, NY—Cush- man &Wakefield, Inc.’s Metro- politan Area Capital Markets Group (CMG) has completed the sale of 2929 Expressway Drive, Class A office located in Hauppauge, NY. The CMG team of Andrew Merin, David Bernhaut, Gary Gabriel, Kyle Schmidt and Rob Kupper- smith represented the seller, a joint venture of Ivy Realty and CenterSquare Investment Management and procured the buyer, a joint venture between Mason Asset Man- agement, Inc. and Namdar Realty Group based in Great Neck, NY. “We saw a s i gni f i cant amount of interest and tour activity for this highly visible Wayne, PA — Newmark Grubb Knight Frank (NGKF) today shared its outlook for the suburban Philadelphia of- fice market at the company’s annual Philadelphia Metro Suburban Forecast. The event, now in its 13th year, was held at the Philadelphia Country Club in Conshohocken, PA. Executive managing directors Jeff Mack and Reid Blynn discussed current market conditions, which reflect slow recovery in the leasing mar- kets following peak vacancy in 2010, but indicated that activ- ity over the past year points to a broader recovery. “Except for a few submar- kets, there are a range of opportunities available to ab- sorb the uptick in demand we expect in 2014,” said Blynn. “We predict growth-stage companies to be most active in the market as more and more venture capital moves upstream to revenue-gener- ating enterprises, funding overall organic growth in the marketplace.” Wh i l e NGKF e xpe c t s strengthening in both class A and B office fundamentals, Mack explained that recovery
property,” said Bernhaut. “The property has historically been leased by institutional-qual- ity tenants, including current blue chip occupants Microsoft and MetLife.” Schmidt added, “A large number of investors recog- nized the long-term value proposition that this offering presented.” The Long Island office mar- ket is among the tightest in the nation, with strong leasing activity underlined by a low, 6 percent unemployment rate. Home to 2.8 million people, Long Island is known as a diverse, educated and affluent market driven by the educa- tion, healthcare, high-tech and financial services sectors. n in the suburban office market over the next 12 months will continue to be in the class B sector. “We expect some spec- ulative office development, supported by an element of pre-leasing, to kick off in the Bala Cynwyd, Radnor/Con- shohocken, Wayne or Plym- outh Meeting submarkets, where inventories of Class A space are in short supply,” he said. Still, there have been bumps on the road to recov- ery. In Wilmington, Del., for example, “it’s a case of déjà vu,” said Wills Elliman, senior managing director. “AstraZeneca is disposing of 545,000 square feet in 2013 and 2014, adding vacancy to a market that has not fully recovered from 2007 and 2008, when Bank of America returned 600,000 square feet through disposition of unused assets.” Elliman pointed to positive news, as well – CSC recently committed to a 175,000 s/f built-to-suit project at The Commons at Little Falls. He and partner Neal Dangello represented Trefoil Proper- ties, LP in the transaction. n
It’s a new age- naural selecton & office market trends... Continued from page 10C
surmountable but requiring alteration. On a regional level our of- fice NAI Summit located in Allentown. PA of the Lehigh Valley has been witness to two innovative programs whose affect has been to accelerate the natural selection process in office trends. Each program was born out of state legisla- tive action. The Neighborhood Improvement Zone (NIZ) and the City Revitalization and Improvement Zone (CRIZ) are designed to spur new develop- ment, revive downtowns, and create jobs by offering tax incentives to businesses that choose to operate within the designated zones. The NIZ program encompasses approx- imately 128 acres in center city Allentown with the focal point being an arena complex along with a Waterfront devel- opment project on the banks of the Lehigh River. The result has been a number of regional businesses relocating to the urban core of Allentown into newly constructed office space. The first wave of construction has seen nearly 300,000 s/f of class A space erected; and more being planned. The CRIZ program allows up to 130 acres parcels for cities of at least 30,000 desig- nated for redevelopment. The City of Bethlehem, PA has
been granted several CRIZ opportunities recently, one being the adaptive reuse of the previous Bethlehem Steel world headquarters campus which has been lying fallow for nearly a decade. The CRIZ program allows for similar tax incentives for construction, infrastructure and operation to those within the incentive zone. These forward thinking programs have appealed to the business sense of many looking to begin their business evolution. Based on the early results of these two projects other markets are sure to follow. The Lehigh Valley economic forecast is a bright one. Re- gional business diversity and strategic location (30 million people within 100 miles) are supported by a strong technol- ogy, medical and educational presence which has made the Lehigh Valley one of the nation’s premier targets for corporate relocation. NAI Summit has remained poised to deliver results oriented expertise and comprehensive advice to our clients related to the forecasted growth and change by applying in-depth market knowledge and the best professional service. Jay Haines is the vice president of NAI Commer- cial Real Estate Services. n
NewmarkGrubbKnightFrank Office Market Forecast
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