14A — July 2024 — Brokerage Directory — M id A tlantic Real Estate Journal
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Activity led by 17,386 headquarters lease at 100 Walnut Ave. in Clark, NJ Signature Acquisitions reports strong leasing in second quarter across portfolio
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denced by two lease expansions in Signature’s Clark/Cranford portfolio. Bayada Health, an international healthcare staff- ing company, expanded their space at 11 Commerce Dr. while US Electric expanded at 20 Commerce Dr. Lease renewals in Signa- ture’s Clark/Cranford portfolio included Suvip Solutions, an IT provider, who renewed their lease at 11 Commerce Dr. At 14 Commerce Dr., technical staffing company L.J. Gonzer and Elvy Developers renewed their leases. Conveniently located at Exit 135 and 136 of the Garden State Parkway, Signature Acquisitions’ Clark/Cranford portfolio is just 25 miles from Midtown Manhattan and pro- vides an ideal business envi- ronment in the heart of Union County. The class A office properties offer convenient access to several nearby major highways, Newark Liberty International Airport and the strategic Port of Newark and Elizabeth, in addition to a in an otherwise challenging office market. Conversely, 800,000+ s/f of office supply has been removed from the market as a result of Hertz Investment Group’s announcement that it pursues to sell Three Gateway Center (375,000 s/f) in lieu of convert- ing the building to residential, and a similar announcement made by Rugby Realty regard- ing Gulf Tower (430,000 s/f), and its joint-venture with Left Lane Capital to convert the building to residential/hospitality. The loss of supply equates to 2.89% of the current total market, which will have an interesting impact on vacancy rates as both owners, Hertz and Rugby, have had suc- cess in relocating tenants within their respective portfolios; the balance of Hertz-owned Gate- way Center exceed 1M s/f office, and Rugby’s remaining holdings (Koppers Building and Frick Building) also approach 1M s/f. Deal Spotlight: In line with a move that’s becoming all too common, Fox Rothschild LLP, a law firm based in Pittsburgh’s CBD, will be Pittsburgh leaving be - hind its space at BNY Mellon Center to relocate to Six PPG Place, which is a theme that is expected to continue over the next several years. By now, it’s
wealth of nearby amenities. At 100 Matawan Rd. in Matawan, Signature Acquisi- tions completed a new 5,972 s/f lease with Insurance Auto Auctions, an automobile auc- tion service. The property features an impressive four- story, 133,000 s/f Class-A office building strategically situated on the border of Middlesex and Monmouth Counties directly off the Garden State Pkwy. at Exit 120. The building’s supe- rior location is just minutes from the Aberdeen-Matawan train station. Beyond New Jersey, the firm signed a new lease with Long Island’s premier heavy civil construction contractor, Posillico, Inc. at 888 Veter - ans Memorial Highway in Hauppauge, NY, part of a three-building, 270,000 s/f office campus located in Suf - folk County. The buildings’ striking, iconic architecture and unparalleled executive- level amenities make it one of Long Island’s premier office campuses. MAREJ
RANFORD, NJ — Signature Acquisi- tions , one of the re- gion’s most active and pres- tigious owners/managers of class A suburban office space, announces it has negotiated 10 new, expanded and re- newed office leases in eight buildings across its portfolio in the second quarter of 2024. The company’s successful second-quarter leasing activ- ity continues a strong “flight to quality” trend that Signature has experienced over the past several quarters. “In today’s competitive office market, tenants are drawn to high-quality, adaptable class A office space with stable own - ership that provides an un- matched focus on tenant ser- vice,” said Sandy Monaghan , SVP, director of asset manage - ment at Signature Acquisi- tions. “Our success is driven by providing not just exceptional workspaces for our tenants, but by delivering superior value. This operating philoso- phy continues to draw smart, Pittsburgh’s Central Busi - ness District (the “CBD”) is the largest office submarket in the Pittsburgh MSA. The CBD boasts more than 27.6M s/f, which represents nearly 32% of total market inventory. Since having 500,000+ s/f of office space hit the market in a single quarter a year ago (Q2 ’23), the total aggregate net absorption in the CBD in the past year was -260,446 s/f; this indicates a pick-up in activity, although negative net absorption contin- ues. Simultaneously, vacancy in Q2 ‘24 in the CBD is the highest its been (15.1%) since Q2 ‘20 and is expected to continue rising de- spite increasing leasing velocity by more than 10% per quarter since Q3 ’23. The sole new office construc - tion project in the CBD, FNB Fi- nancial Center, is experiencing a successful lease-up campaign following FNB’s commitment to taking 60,000+ more s/f in the tower. The commitment bringing FNB’s total footprint to 230,000 s/f in the 460,000 s/f tower, which brings the project to 70% pre-leased; the project should be completed in October of 2024. FNB’s expanded pres- ence in what will soon be the CBD’s newest tower (and the highest-priced office building in the submarket) is a bright spot
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forward-thinking tenants to our portfolio of strategically lo- cated class A office buildings.” Signature Acquisitions expe- rienced strong activity across its expansive Clark and Cran- ford portfolio, which saw two new leases, along with three lease renewal/expansions and three lease renewals. At 100 Walnut Ave. in Clark, All- Ways Forwarding, an interna- tional transportation logistics company, inked a new 17,386 s/f lease to serve as their new
corporate headquarters. Also joining Signature Acquisitions with a new lease in their Clark and Cranford office portfolio is COS Phones which leased space at 6 Commerce Dr. At 25 Commerce Dr. in Cran- ford, Signature Acquisitions negotiated a 6,267 s/f lease renewal and expansion for Electrical Consultants, Inc. Signature prides itself on working with its tenants to best accommodate their spe- cific office space needs, as evi -
Hanna Commercial Pittsburgh Office Market Report | Q2 2024 somewhat well-known that the 1.6M s/f BNY Mellon Center is master-leased to Bank of New York Mellon Corp. thru 2028. Further, BNY has indicated its intentions of relocating its work- force in BNY Mellon Center to 500 Ross St., its current Client Service Center, which it owns and is currently upgrading to make room for a consolidation. That said, BNY Mellon as the master tenant is not extend- ing the term for existing (sub) tenants beyond BNY’s lease expiration in 2028.
The move by Fox Rothschild is almost identical to the one made by Steptoe & Johnson PLLC when it relocated from BNY Mellon Center to One PPG last November. Not only does the deal sup- port a variety of local narra- tives (professional services firms - especially law firms – are leading the charge in the office leasing market, office tenants are gravitating to the Stanwix corridor within Downtown Pitts - burgh, etc.) but it is yet another reminder that there exists a looming threat to the CBD of- fice market as 500 Grant St. is expected to be delivered back to its owner, MetLife, completely vacant in 2028, and all 1.6M s/f of office space that comes with it. MAREJ
Six PPG Place
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