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4C — November 22 - December 12, 2019 — Commercial Office Properties — M id A tlantic
Real Estate Journal
C ommercial O ffice P roperties By Carlo L. Batts, MAI, Rittenhouse Appraisals The ever-evolving modern day office
T rends in the office market are constantly evolving, having gone
to function in a relaxed, cre- ative environment with dining rooms, lounge space, gaming rooms, outdoor space and fit- ness centers. Lobbies that used to be walls of marble are nowmeant to feel like your living room, with cof- fee stations and food ordering stations. Roofs that used to contain only mechanical equip- ment have been fit out with decks, pergolas, even Astroturf to brighten the space and cre- ate an urban oasis amongst the neighboring rooftops. Building owners and inves- tors are looking for buildings
that allow the floor plates to be more interchangeable and to serve more than a single use. They seek flexibility to ebb and flow with the market, looking for floor plates that could be easily converted from office to residential and vice versa. Technology is a big upgrade you’re seeing across the board. WiFi, Bluetooth televisions, phone charging stations and white noise filters are becom- ing standard items on the must-have lists to accommo- date new tech savvy employ- ees. With the large number of co-
this time as well, we will have a better understanding of the “WeWork” effect on the office market. The challenge of course to all these necessary amenities is the added cost of construc- tion and maintenance require- ments. While providing a nice hang out space is attractive to tenants and their employ- ees, does it result in a higher productivity to the tenant and does it bring a higher rental rate to the owner? Ameni- ties and results could be mis- aligned. Carlo L. Batts, MAI is principal at Rittenhouse Appraisals. Colliers facilitates sale on behalf of The Bloom Org. MOUNT LAUREL, NJ — Ian Richman and Marc Isdaner of Colliers Interna- tional’s Mount Laurel office announced the sale of the Fel- lowship Business Center - a 96,000 s/f five-building complex within the East Gate Business Park - for the sum of $10.675 million. The sale was facilitated on behalf of The Bloom Organi- zation to a private investor. In a second transaction, Evan Zweben , of Colliers International, has concluded a long term lease at 3906 Church Rd. in Mount Laurel on behalf of the owner. The tenant was represented by Jason Wolf of WCRE . When the current owner purchased it in 2011, 3906 Church Rd. was fully leased to American Water. Upon their consolidation and relocation to Camden as part of a New Jersey Grow incentive pack- age in 2019, the property was unexpectedly facing a 27,600 s/f vacancy. A broad market- ing campaign was conducted by Colliers. “With the outstanding loca- tion, efficient floor plate and abundant parking the property affords, we were confident in our goal of finding a new long- term tenant to consider the site as a headquarters opportunity in amenity-richMount Laurel.” said owner Rick Schwartz . Samaritan Healthcare & Hospice, South Jersey’s first and largest hospice organiza- tion is expected to relocate its corporate offices fromEvesham to its new, larger, home at 3906 Church Rd. in early 2020.
working spaces now saturating the market and the increased demand by tenants for vast building amenities, the market is still trying to find a balance to fulfill the needs of clients. The Philadelphia market in particular, will have a clear picture as to what the needs of office tenants are come 2021 with over three million s/f of office leases up for renewal. The building owners that jump on the opportunity to improve upon their building offerings will be in the position to cap- ture those that may swayed to make a move for more glitz. By
from smaller footprints to c o w o r k i n g spaces, then back to tradi- tional offices e x p l o d i n g with services and ameni- ties. In order
Carlo L. Batts
to attract younger employees and create an environment for collaboration, employers are loading offices with all of the amenities one could want
When it comes to getting deals done in today's fast-paced market, time is more important than ever. We think waiting 4-5 weeks for an appraisal is unconscionable
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