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ISSUE HIGHLIGHTS Volume 38, Issue 5 May 2026
The property is owned by Clarion Partners in Cranbury, NJ Blau & Berg secures long-term lease of 444,470 s/f industrial facility on 39.94 AC
RANBURY NJ — The Blau & Berg Company , a distin- guished commercial real es- tate brokerage firm serving the New Jersey and Tri-State region since 1932, announced the representation of Tita- nium Plus Auto Parts in a long-term lease for a premier 444,470 s/f industrial facil- ity located at 26 Hightstown- Cranbury Station Road in Cranbury, directly at Exit 8A of the New Jersey Turnpike. Representing the tenant on the deal was the Blau & Berg team of Alessandro (Alex) Conte, CCIM, SIOR, Jason Crimmins, CCIM, SIOR, and Peter Murano, Jr. SIOR This state-of-the-art cross- dock warehouse features 40’ clear heights, 135 loading docks, 4 drive-in doors, and sits on 39.94 acres. The strategic JERSEY CITY, NJ — Real Capital Solutions (RCS) , in partnership with Lamar Companies , has acquired 30 Montgomery, a 16-story, 368,049 s/f class A office tower in Jersey City’s Exchange Place submarket. The property is located along the Hudson Waterfront, one of the most transit-connected and fastest-growing office markets in the Northeast. “This is exactly where we C
The property is owned by Clar- ion Partners , a leading global real estate investment firm with an office in Dallas, TX, man - aging a robust portfolio that includes substantial industrial assets across more than $72 billion in AUM. “Our team was excited to not only find a building that checked all the boxes for Tita- nium but were able to meet all of Titanium’s timing require- ments,” said Alessandro (Alex) Conte, president of The Blau & Berg Company. We are find - ing our tenant representation side of the business nearing 2022 highs and continue to be optimistic about the future. We extend our sincere thanks to the Titanium Plus team for their professionalism and collaboration, which made this transaction seamless and efficient for the landlord from start to finish.” MAREJ 30 Montgomery is 61% leased to tenants including Bluevine Capital, Wayste, Asset Based Lending and Outcomes Matter Innovations. The property has undergone more than $30M in capital investment, including upgrades to the lobby, façade, building systems and common areas. The building’s flexible floor plates and smaller suite configurations align with cur - rent tenant demand trends, particularly among profes- sional services and growth- oriented companies. The building offers direct access to the Exchange Place PATH station, ferry terminals and regional transit, providing connectivity to Manhattan and the broader metro area. It is also well-positioned to benefit from continued residential growth in Jersey City. This acquisition aligns with RCS’ strategy of investing in office assets at a reset basis. In the current market cycle, RCS has acquired 12 office properties nationwide and deployed more than $560.5M in capital. MAREJ
SPOTLIGHTS
HEALTHCARE
3-11
WASHINGTON, DC FEATURING
26 Hightstown-Cranbury Station Road
Bargold Storage Systems transforms underutilized areas into performing assets
East Coast location and supe- rior cross-docking capabilities will deliver major operation - al efficiencies, faster fulfill- ment times, and expanded market reach for Titanium Plus Auto Parts across the entire Eastern U.S. Titanium Plus Auto Parts,
an e-commerce retailer and physical storefront operator specializing in high-quali- ty after-market automotive parts, now has a powerful new distribution hub to support its continued growth. The landlord was represented by Nate Demetsky of JLL .
15
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Real Capital Solutions enters Jersey City, NJ office market with acquisition of 30 Montgomery
Directory
30 Montgomery
Healthcare................................................................ 3-11 DelMarVa featuring Washington, DC.......................12-15 CIRC Delaware Chapter................................................12 Financial. ................................................................ 16-18 New Jersey featuring Central NJ..............................19-27 IOREBA New Jersey Chapter.........................................27 Pennsylvania featuring Central PA...........................28-32 Owners, Developers & Managers............................33-43 CRE Organization’s Events Calendar .............................. 40 People on the Move.....................................................44 www.marej.com
want to be investing right now,” said Adam Abeln , chief acquisitions officer at Real Capital Solutions. “Assets like 30 Montgomery are being repriced due to capital mar- kets, not fundamentals. That creates an opportunity to step in at a basis where execution drives returns.” The acquisition marks RCS’s entry into the Jersey City of- fice market and the second
office transaction completed with Lamar Companies in the past seven months. “30 Montgomery fits square - ly within our focus on well- located assets with near-term leasing upside,” said Frank Maresca , executive vice presi - dent of Lamar Companies. “With the capital already invested and the right execu - tion plan, we see a clear path to creating value.”
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M id A tlantic R eal E state J ournal Publisher, Conference Producer ..............Linda Christman VP, Conference Producer .............................Lea Christman Editor/Graphic Artist ......................................Karen Vachon Contributing Columnist ........Tony Grant, A&G Real Estate Partners; Bargold Storage Systems Mid Atlantic R eal E state J ournal ~ Published Monthly Periodicals postage paid at Hingham, Massachusetts and additional mailing offices Postmaster send address change to: Mid Atlantic Real Estate Journal 117 HMS Halsted Dr., Hingham, MA 02043 USPS #22-358 | Vol. 38, Issue 5 Subscription rates: 1 year $99.00, 2 years $148.50, 3 years $247.50 & $4.00 single issue - plus postage
Tony Grant
Why Retailers Should See Leases as Strategic Assets R etail chains can gain an edge by thinking of their leases as strate- gic assets rather than mere li- abilities, advised an executive from national advisory firm A&G Real Estate Partners . “That might sound like ver- bal jiujitsu, but the right ap- proach can help you achieve real-world outcomes like re- ducing your occupancy costs or reinvesting in your stores,” advised A&G senior managing director Tony Grant in an Expert Viewpoints piece for Chain Store Age Online . Grant has negotiated more than $500 million in lease savings on behalf of retail, res- taurant and fitness operators in his 20-year career. He offers three tips for healthy and dis- tressed chains seeking to ramp up real estate performance. Start the conversation— even if you’re healthy Grant advises even healthy operators to consider the ben- efits of real estate restructur - ing, noting that “the smartest
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retailers are always looking for ways to generate more value within the portfolio.” He uses the example of a coffee house chain with leases expiring in 10 locations. “These stores happen to be in need of a refresh: up- dated bathrooms, modern finishes, and repainted exte - riors,” Grant writes. “Instead of continuing with business as usual, why not walk into those landlords’ offices and start a dialog about the future?” The coffee chain, having decided that each location needs $150,000 in reinvest- ment, asks its landlords for tenant-improvement (TI) al- lowances of 20 or 30% as well as two-year lease extensions at flat rent. “Taken together, the rent savings plus that TI al- lowance translate into $50,000
kicked in by the landlord,” Grant writes. “That means the retailer is able to save $1.5 million across the 10 locations … There are many different possible permutations. The key is to take the initiative and engage in those discussions.” Take a second look at your store footprint Retailers with oversized locations should consider carv- ing out useable space for the landlord. “In many cases, landlords are able to use that clawed-back space to create another storefront and bring in a new tenant with good credit and an attractive rental rate,” Grant writes. The original retailer benefits by reducing real estate costs on its profit-and-loss statement: A 30% space reduction translates continued on page 24
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H ealthcare
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H ealthcare
Care Has Come A Long Way So have the settings that support it.
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New Healthcare Showroom - Now Open Two Commerce Square, 11th Floor, Philadelphia, PA
Creating Spaces Where People Heal.
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ealthcare environ- ments have always been shaped by ne- By Maria Scenna, CFI Workspace Healthcare Workspace Design: Where We Were, Where We Are, and Where We’re Going H major renovation.
decisions were heavily influ - enced by measurable outcomes, including how quickly a room could be cleaned, how effi- ciently staff could move, and how effectively systems could support billing and compliance. Evidence-based design be- gan to gain traction during this period, introducing elements like natural light, improved sightlines and quieter environ- ments. These were important advancements, but they were often built into existing frame- works rather than fundamen- tally reshaping them. The industry began to rec- ognize that the environment impacts outcomes, but spaces were still designed primarily for systems, not for the full human experience. Architects, designers and furniture partners played a critical role, often within defined constraints. The goal was efficiency and compliance versus welcoming or adapt- able. So while yes healthcare environments worked, they still were not desirable spaces where people wanted to be. Where We Are Now: Hospitality, Experience, and the Rise of Human- Centered Design Today, healthcare design has shifted dramatically. Ef- ficiency and clinical perfor- mance remain essential, but they are no longer the sole drivers. The industry has em- braced a broader understand- ing of care, one that includes patients, families, caregivers and clinical staff.
and more intuitive layouts are becoming standard. The goal is no longer just to treat illness. It is to create healing environ- ments that reduce stress, sup- port well-being and feel more familiar and accessible. Healthcare has become more experience-driven, with great- er emphasis on how people move through a space, interact and are supported at every touchpoint. This shift is visible across a range of design decisions: • Larger, more open waiting and gathering areas • Spaces designed for col - laboration and connection, not just function • Increased focus on care - giver experience and workflow support • Intentional pathways that improve navigation and efficiency At the same time, opera - tional demands have become more complex. Healthcare systems are under pressure to do more with less. Less space. Fewer staff. Tighter budgets. This has led to a renewed focus on efficiency, but with a different perspective. It is not about minimizing space but optimizing it.
And these spaces must be in the closest proximity to the patient. Caregivers do not wish to wan- der out of the treatment areas for respite. This shift reflects a deeper understanding of the people who rely on these spaces every day. Care teams want to remain close to their patients, with easy access to supplies and nearby places to reset. Fami- lies share many of those same needs, seeking comfort, clarity and proximity during moments that matter most. Where We’re Going: Flex- ibility, Technology, and the Decentralized Ecosystem Looking ahead, the next evo- lution of healthcare design is not about a single trend. It is about adaptability. The indus- try is moving toward a broader ecosystem, not just a building. Over the next five to fifteen years, healthcare environ- ments will continue to shift toward more flexible and de - centralized models. Facilities will need to respond to chang- ing technologies, shifting pa- tient needs and evolving care delivery methods in real time. That ecosystem will be: • Modular and adapt - able, allowing spaces to be reconfigured quickly • Technology-enabled, incor - porating AI and real-time data to support decision-making • Decentralized, with care extending beyond traditional hospital walls
Real-time patient and staff needs will influence how spac - es are used moment to mo- ment. Flexibility will no longer be a feature. It will be a requirement. There is also a growing em- phasis on sustainability, both environmental and operational. Spaces must be designed to last, adapt and evolve without constant reinvestment. Even as technology advances, the need for connection, comfort, and clar- ity will not change. If anything, it will become more important. Closing: Designing for What Matters Most Healthcare design has come a long way, from efficiency- driven environments to experi- ence-centered spaces and now toward adaptable ecosystems built for the future. At its core, the mission is the same and the human element remains central. It is about creating spaces where people can do their best work and where others can receive the care they need. That is where CFI Work- space continues to focus its efforts, bringing together in- sight, experience and a deep understanding of healthcare operations – one that sup- ports environments which are flexible, purposeful and built to evolve. By working closely with partners across design, construction and care delivery, CFI views its role as one far beyond just furnishing spaces. It is to help shape environ- ments that truly support the people within them. Maria Scenna is executive director of Healthcare Sales for CFI Workspace, where she leads the company’s Healthcare Division. MAREJ identify actionable strategies to build a more inclusive, ac- cessible, and resilient health- care workforce in the region. The event is part of an ongoing series sponsored by East Penn Manufacturing Co. and Visions Federal Credit Union. Event Details: Legislative Roundtable: Healthcare Work- force Pipeline from Education to Employment in Berks County When: Friday, May 29, 10 a.m. to 11:30 a.m. Where: Reading Hospital Conference Center, 420 S. 5th Avenue, West Reading, PA. MAREJ
cessity, but today they are being redefined by expectation. Patients ex- pect more c om f o r t . Care teams need more
Maria Scenna
support. Systems demand more efficiency. And the spac - es themselves? They’re ex- pected to be more than a place where care happens. They must actively contribute to it. This evolution is not a series of trends, but a continuous shift toward something more human. It is never just about the space. It is about what happens in it and how it makes people feel, heal and thrive. To truly understand where healthcare design is today re- quires looking at where it has been and where it is going to be over the next 5-10 years. Where We Were: Effi- ciency, Standards, and the Foundations of Care Healthcare design in the early 2000s and into the 2010s was driven primarily by clini- cal efficiency and operational necessity. Patient-centered care was emerging as a con- cept, but in practice, environ- ments were still largely built around workflows, reimburse - ment structures and the logis- tics of delivering care at scale. Layouts prioritized proxim- ity and access. Nurse stations were positioned for visibility. Supply storage was integrated into units for speed. Standard- ized room configurations were designed to optimize turnover and reduce variability. Design READING, PA — The Greater Reading Chamber Alliance (GRCA) will con- vene state and industry lead- ers for a Legislative Round- table focused on strengthen- ing the healthcare workforce pipeline in Berks County. Titled “Healthcare Work- force Pipeline: From Educa- tion to Employment in Berks County,” the event will feature remarks from Sen. Judy Schwank (D-Berks, 11th District), Rep. David Zim- merman (R-Lancaster, 99th District), and Kristen Rodack , executive deputy
• Multi-use, supporting a range of functions within a single environment Furniture and interior solu- tions will play a critical role in this shift. Systems will need to support rapid change by adjusting to different users, different needs and different modes of care without requiring Hybrid care models, outpa- tient services and decentral- ized systems are changing how facilities are used. Technology has advanced, but the empha- sis is shifting toward simpli- fying its presence so it feels seamless and less intrusive. There is also a growing rec- ognition that caregivers need environments designed for them, not just for patients. Re- spite areas, quieter zones and better workflow support are becoming critical components of modern healthcare design. GRCA to host Legislative Roundtable on Healthcare Workforce Pipeline in Berks County Healthcare environments are now borrowing from hos- pitality. Biophilic design has taken a larger role where open gathering spaces with softer materials, layered lighting
Participants will also ex- amine key barriers that pre- vent residents from pursuing healthcare careers, including cost, transportation chal- lenges, and limited access to support services. Policy priorities expected to be dis- cussed include funding for workforce training, paid clini- cal experiences, credentialing pathways, and wraparound support systems. Designed for healthcare providers, educators, training organizations, and community partners, the roundtable aims to foster collaboration and
Judy Schwank
David Zimmerman
Kristen Rodack
advancing within the health- care field. Topics will include expanding apprenticeships and clinical placement opportuni- ties, improving retention among existing workers, and enhancing access to career pathways.
secretary of the Pennsylva- nia Department of Health . The discussion will address the growing urgency of aligning education, training, and em- ployment systems to better sup- port local talent entering and
6 — May 2026 — Healthcare — M id A tlantic Real Estate Journal
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H ealthcare
Leasing Trends | Vacancy | Investment Activity Colliers Mid-Atlantic Life Sciences Market Outlook for 2026
he Mid-Atlantic life sciences and health- care real estate sector is navigating a period of re- calibration, as shifting capi- tal markets, slower venture funding, and evolving tenant demand reshape leasing activ- ity across key hubs including New Jersey, Philadelphia, and Suburban Maryland. While macroeconomic pressures have tempered expansion in the near term, the region’s deep talent pool, institutional anchors, and strategic location continue to support long-term growth and position it as a critical corridor for research, manufacturing, and innovation. The challenging macroeco- nomic environment is weighing on tenant demand. In 2025, biotechnology companies were forced to contend with a va- riety of factors that impeded their ability to grow and lease space. These issues ranged from weak stock market valu- ations that forestalled IPOs for many companies to reduced ac- cess to venture capital funding. PitchBook data indicates that 2025 was tied for the second fewest US-based life sciences company IPOs over the last 35 years. More than $33 billion in venture capital volume was completed during the year. While healthy from a long-term historical perspective, this volume is 25% below the 2020 to 2022 average at the height of the market, and in recent quarters earlier-stage firms have not been landing funding rounds at the pace seen in prior years. For some companies, this has led to layoffs and other cost- saving measures. Space absorp- tion has suffered as a result, with 2025 marking the second consecutive year in which the major market aggregate posted negative net absorption. As is the case across many corners of the CRE universe, overall investment activity in the life sciences sector is down. Regionally, market perfor- mance varies across key Mid- Atlantic hubs. New Jersey New Jersey, an established hub for life sciences, boasts eight of the top 10 global biopharma- ceutical companies. Occupiers favor its strategic position in the Northeast Corridor, with a robust transportation infra- structure, top-tier research universities, and a large, special- ized workforce. The state has the highest density of scientists T
is expected as these spaces become available, signaling a period of transition and po- tential growth for the region. With multiple life sciences ten- ants known to be subleasing, downsizing, or vacating their facilities (for example, BioRe- liance will consolidate several of its operations into its new build-to-suit in 2026), backfill space will be a major factor contributing to additional softness in the near term. Pittsburgh Pittsburgh is rapidly strengthening its position as a hub for life sciences and ad- vanced manufacturing, fueled by its world-class research institutions, its healthcare in- frastructure, and an expand- ing array of biomanufactur- ing capabilities. Four recent developments underscore the region’s momentum and its ability to both attract significant investment and drive innovation. Panther Life Sciences is expanding its presence in Pittsburgh after a success- ful collaboration with Pitt BioForge that advanced its Microarray Patch technology, which enables large-scale, cost-effective vaccine delivery without refrigeration. Af- ter completing a $51 million Series E round of financing to advance ST266, its bio- logic treatment for necrotizing enterocolitis in premature infants, Noveome Biothera- peutics sent a strong, long- term growth signal by leasing 41,000 s/f at RIDC O’Hara to expand its operations. Pepti- logics secured $78 million to fund late-stage trials of its peptide-based drug designed to eliminate prosthetic joint infections and potentially reduce the need for multiple surgeries. Finally, building on regenerative medicine patents developed at the University of Pittsburgh’s McGowan Insti- tute, ECM Therapeutics has raised $35 million to support FDA- approved clinical trials for a non-surgical treatment of anorectal fistulas. These investments and facil- ity expansions clearly demon- strate Pittsburgh’s thriving life sciences ecosystem, which com- bines cutting-edge research, advanced therapeutics, and an advantageous real estate cli- mate. Together, they position the region for sustained growth in healthcare innovation and biomanufacturing. MAREJ
and engineers per square mile in the US and is ranked second nationally for its pharmaceutical manufacturing workforce. It also offers cost-effective and move-in- ready lab and biomanufacturing space through a growing inven- tory of high-quality facilities, including repurposed legacy pharmaceutical campuses. Although fewer large-scale transactions took place in 2025 because some legacy pharmaceutical companies continued to shed jobs, overall demand for life sciences space remained positive. Legend Biotech signed a significant lease, taking 57,325 s/f at 77 Corporate Dr. in Bridgewater. And Portal Innovations, a life sciences incubator, agreed to occupy 30,000 s/f at the Helix development in downtown New Brunswick. Significant new occupancies were driven by ground-up construction, including Kenvue’s global headquarters in Summit, featuring a 100,000 s/f lab building, and the completion of Aurobindo Pharma’s 170,000 s/f manufacturing facility in East Windsor. Life sciences vacancy grew more slowly in 2025, from 14.4% to 14.9%. Available lab space remains concentrated in just a few large blocks, includ- ing the NEST campus in Ke- nilworth, where the owners are launching a multimillion-dollar renovation. In 2026, vacancy could stabilize, while demand from emerging biotech firms may drive selective growth. Philadelphia/Tri-State The completion of three largely speculative, purpose- built facilities in Philadelphia was the main component in the market’s vacancy increase to 11.3%. Although leasing mo- mentum for new, speculative construction continued to lag, and multiple resident compa- nies cut their workforces, there
were positive trends in the life sciences ecosystem in 2025. Merck, GSK, and J&J Inno- vative Medicine are building or expanding existing complexes in Delaware and Pennsylva- nia. Almac completed the first phase of a major expansion of its Souderton facility. B. Braun (Allentown, PA), Apozeal (Bris- tol, PA), Piramal (Sellersville, PA), and PharmaBlock (West Chester, PA) are all modern- izing and increasing production lines while creating more jobs. The University of Pennsyl- vania and Children’s Hospital of Philadelphia significantly expanded their research foot- prints in Philadelphia, and the Coriell Institute for Medical Research is developing a 92,000 s/f lab innovation center in Camden, NJ. Legend Biotech opened its cell therapy R&D center at Breakthrough Property’s new 2300 Market St. development. Breakthrough and Eli Lilly will also be launching Lilly Gateway Labs at this location. Unfortunately, Spark/Roche, Minaris Advanced Therapies, Adaptimmune, Carisma Thera- peutics, Century Therapeutics, Vifor/CSL Behring, and Pas- sage Bio had layoffs. Exelixis and Arbutus Biopharma shut facilities, and Adare Pharm announced plans to close one of two R&D/ manufacturing locations in Philadelphia. The outlook for 2026 is in- creasingly optimistic. On the supply side, all of the con- struction currently under way is build-to-suit. Projects for WuXi STA and Spark/Roche are scheduled for delivery, adding 1 million s/f of occupancy. Ad- ditionally, two transformative projects were announced early in the new year. Eli Lilly will be investing over $3.5 billion in a new in- jectable medicine and device manufacturing facility in the
Lehigh Valley, and Johnson & Johnson announced plans for a $1 billion cell therapy plant in Montgomery County. The State of Pennsylvania was instrumental in landing these projects through the new PA Permit Fast Track Program. Suburban Maryland The Suburban Maryland life sciences market slowed no- ticeably in 2025, largely from uncertainty about government contracting activity and insta- bility in the capital markets since mid-2023. This hesita- tion has tempered leasing momentum across the region. However, despite the recent dip in federal engagement, the area continues to benefit from its strategic proximity to key agencies such as the Food and Drug Administration (FDA) in Silver Spring and the National Institutes of Health (NIH) in Bethesda. These institutions, coupled with the Shady Grove life sciences cluster, serve as anchors for innovation, and re- main critical to sustaining long- term demand and investment. Adding to the region’s com- petitive edge is a highly edu- cated workforce and relatively favorable labor costs, factors that consistently attract com- panies seeking stability and talent. No new development projects are underway. How- ever, multiple projects remain planned or in development, and several property sales are in progress, with potential conversions anticipated as the market approaches 2026. A major shift, driven by GSK’s decision to vacate its Rockville R&D center upon lease expi- ration in 2026, will put more than 600,000 s/f of vacant space into the market. This will create significant opportu - nities for tenants seeking large contiguous blocks . Although vacancy rates have remained in the single digits, an uptick
M id A tlantic Real Estate Journal — Healthcare — May 2026 — 7
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H ealthcare
ealthcare delivery has consolidated over the past decade. Owner- By Erica Davidson and Adam Tannenbaum, Lee & Associates NJ | WBE New Jersey Isn’t Building Medical Office Like the Sun Belt. That’s The Advantage for Investors. H
often benefit from adjacency to complementary providers, procedural infrastructure, and network effects. The dis-
5.0 spaces per 1,000 square feet materially expand the universe of viable users, par- ticularly for specialties with higher procedural acuity and patient throughput. Struc- tural considerations such as slab-on-grade construction, efficient floorplates, floor load capacity, ground-floor acces - sibility, and lie-flat gurney-ca - pable elevators can further in- fluence a property’s long-term competitiveness. The ability to accommodate backup genera- tors, medical gas, wall oxygen, imaging infrastructure, and other technical requirements
may ultimately determine whether an asset can sup- port the next generation of outpatient delivery or simply continue as well-located office space suited for lower-acuity satellite uses. For investors and operators, the opportunity in New Jersey outpatient healthcare real es- tate is shaped less by explosive new development and more by scarcity, fragmentation, and replacement difficulty. Much of the state’s outpatient in- ventory remains controlled by physician ownership groups, local investors, and family
offices despite increasingly institutional-quality tenancy and growing infrastructure demands from specialty users. In a state defined by dense population centers, difficult entitlement processes, limited viable development sites, and a heavily regulated ambula- tory care environment, well- located and medically func- tional assets can be difficult to replace. That dynamic contin- ues to create opportunity both for stabilized assets already embedded within established healthcare ecosystems and continued on page 10
ship of the underlying medical office real estate has not. In New Jersey, many outpa- tient medical properties are still con-
tinction be- tween gener- ic medical office space and strate- gically rel- evant outpa-
Erica Davidson
Adam Tannenbaum
trolled by physician owner- ship groups, local investors, and family offices even as the providers occupying them increasingly operate within large health systems, private equity-backed specialty plat- forms, and managed service organizations. The result is a market where institutional- quality healthcare tenancy often exists within assets that remain locally owned and not fully aligned with modern out- patient delivery requirements. Unlike many Sun Belt markets where expansion is driven by large-scale new development and the rapid proliferation of ambulatory surgical centers, New Jer- sey’s healthcare landscape is shaped by population density, high replacement costs, dif- ficult entitlement processes, and established referral net- works where health systems compete aggressively for mar- ket share. More procedures are moving out of hospitals and into outpatient settings. This shift is taking place in a market where new medically functional supply remains dif- ficult to deliver at scale. Medical office real estate is increasingly organized around major healthcare submar- kets tied to dominant hos- pital systems and specialty referral networks. Histori- cally, many health systems operated within relatively defined geographic strongholds including Hackensack Merid- ian and Valley Health along Route 17 in Bergen County, Atlantic Health around Mor- ristown, and RWJBarnabas in areas such as Livingston and New Brunswick. The most competitive submarkets are increasingly shaped not just by hospital-owned practices, but by specialty operators seek- ing proximity to established referral ecosystems and pa- tient populations. Orthopedics, gastroenterology, imaging, car- diology, women’s health, and other higher-acuity specialties
tient real estate often comes down to a handful of physical requirements. In most sub- urban areas throughout the state, parking ratios above
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8 — May 2026 — Healthcare — M id A tlantic Real Estate Journal
www.marej.com
H ealthcare
OODBRIDGE, NJ — You know that doctor’s appoint- Metropark Health & Wellness Center offers transit-accessible care under one roof Hackensack Meridian Health opens nation’s first health & wellness center in a travel hub W
ment you have been putting off, the annual screening, the bloodwork, the nagging cough you’ve been meaning to have checked out? Life is busy and something, whether it’s work or family commitments, often gets in the way of these critical but easily postponed appoint- ments. A recent survey found more than 90% of patients have admitted to delaying or skip- ping annual screenings. It’s one of the reasons more than a third of adult Americans do not have a primary care physician. Today, Hackensack Merid - ian Health is making it easier for patients to go to the doctor, with the opening of the first- in-the nation comprehensive health and wellness center at a major transit hub. Hack- ensack Meridian’s Health & Wellness Center at Me - tropark, a $200 million project built alongside New Jersey Transit’s second busiest train station, with extended hours, offers patients the flexibility to pop in for a quick appointment before commuting to work, or after commuting home in the evening. The Health & Well - ness Center also offers easy access to quality medical care for patients who rely on mass transit, in a highly suburban vehicular transit-reliant state. “Hackensack Meridian Health continues to innovate new ways to deliver high- quality care and expand access to care for our patients,” said Robert C. Garrett, FACHE, CEO Hackensack Meridian Health. “We are the first in the country to bring comprehen- sive health services to a major mass transit hub, revolutioniz- ing where and how healthcare is delivered to reach more people. Patients who regularly attend preventive doctor’s visits have considerably better health outcomes. By making it easier for people to visit the doctor, we are improving the health of our communities. We expect it will be a model emulated across the country.” With comprehensive health services at the transit hub and extended hours, Hackensack Meridian is making medical care much easier for the 60,000 commuters who go through Metropark Station each month. Services will include advanced imaging, urgent care plus, primary care, surgical special-
Hackensack Meridian’s Health & Wellness Center at Metropark
ties, medical specialties, retail pharmacy, physical therapy, occupational therapy, rehabili- tation, phlebotomy and more. “The new Health & Wellness Center at Metropark is exactly the kind of smart, forward- looking investment our state needs,” said Governor Mikie Sherrill . “By locating this cen- ter steps from a major transit hub and incorporating new housing, we are advancing transit-oriented development that makes it easier for resi- dents to live, work, and access care without relying on a car, strengthening the connection between healthy communities and sustainable infrastructure.” The Health & Wellness Cen - ter at Metropark expands on Hackensack Meridian Health’s broader effort to better serve patients by bringing together key network physicians and ambulatory services under one roof in easily accessible neigh- borhoods. In the last several years, Hackensack Meridian Health has opened outpatient care center locations across the state, including in Eatontown, Clark, Clifton and Paramus. “Metropark Health & Well - ness Center’s convenience offers patients who depend on mass transit easy access to a variety of preventative medi- cal appointments and special- ized services all under one roof,” said Mark D. Sparta, FACHE , chief operating of- ficer, Hackensack Meridian Health. “Upon arriving at the Metropark station, patients are able to ‘walk-in’ for blood work, imaging, urgent care and other appointments, and then board the next train or bus to their destination. The seamless model of care enables patients to schedule an ap- pointment early in the morn-
ing before heading to work, or later in the day on their way home. Metropark’s Health & Wellness Center is a shining example of HMH’s blueprint for health, which creates a dense network of access that leaves preventable disease nowhere left to hide.” Hackensack Meridian’s Health & Wellness Center at Metropark is the first part in a broader plan by the state of New Jersey to redevelop Metropark Station and trans - form the area into a walkable destination for transportation, retail, living, working and receiving healthcare. When complete, the project will have housing, office space, retail space and the health and well- ness center all within steps of the transit hub for both New Jersey Transit and Amtrak. The development at Me - tropark is the first example of New Jersey Transit’s broader plan announced in October 2025 to generate additional non-fare revenue by utilizing its real estate portfolio for development. “Hackensack Meridian’s new building at Metropark Sta - tion represents one of the first products delivered under NJ TRANSIT’s recently released LAND Plan: Leveraging our Assets for Non-farebox Dol - lars,” said Kris Kolluri , NJ TRANSIT’s president & CEO. “It is symbolic that we are just a week removed from welcoming 300+ real estate executives and developers to an open house offering sites for development. Anchored by our Metropark Train Station, this project serves as a model for what’s possible under public private partnerships that benefit ev - eryone from the local through the state level.” The Metropark complex is be -
station is also expected to al- low HMH to further recruit top talent from across the entire Northeast Corridor, with em- ployees easily able to commute from major cities, including New York and Philadelphia, along with its central location within New Jersey. “Woodbridge is proud to be the new home of Hackensack Meridian Health,” said Mayor John McCormac . “Our admin- istration worked productively with NJ Transit, the DOR team and the construction team, led by Terminal Construction, to assure that the redevelopment of Metropark resulted in a unique asset that serves Wood- bridge and also derives unique benefits from being here. We look forward to enjoying, with HMH, its success and service to our residents.” “Congratulations to Hacken- sack Meridian Health and to everyone whose dedication, col- laboration, and vision brought this project to life,” said Mid - dlesex County Commissioner Director Ronald G. Rios . “The opening of this new Health & Wellness Center represents a forward-thinking approach to healthcare delivery– integrat- ing preventative and urgent care directly into a transit hub to make access more convenient than ever. This innovative partnership reflects Middlesex County’s continued commit- ment to expanding access to high-quality care and advanc- ing the health and well-being of our residents.” With wellness and sustain- ability top priorities at Hack- ensack Meridian Health, the Metropark building was con - structed in a way that is not only aesthetically pleasing, but also qualifies for LEED Gold certification. MAREJ
ing developed by DOR , a part- nership of the Dinallo family, Onyx Equities and Russo Development to reimagine this Woodbridge community with housing and retail. “The history of Onyx Equi- ties is to find the special op - portunity that many properties provide — sometimes it’s not so apparent,” said John Saraceno, co-founder of Onyx Equities with co-founder Jonathan Schultz. “Metropark is now not only home to the first health - care facility at a train station, it also features Vermella Me - tropark, which will be managed by our partner Russo Develop- ment, with whom we also own Vermella Woodbridge.” Hackensack Meridian Health is also moving its net- work headquarters into the upper floors of the Iselin build - ing, allowing the network to bring all its corporate employ- ees previously spread across several buildings under one roof for greater convenience and collaboration. “This will be the first time since the merger that formed Hackensack Meridian Health ten years ago, all our network non-clinical employees will be in the same building steps away from each other,” said Jose Lozano , Hackensack Merid - ian executive VP and chief growth officer. “The building is designed with collaboration in mind, with ample meeting and social spaces for brainstorming and cooperation. We are excited to give our team members the space to do their best work in a beautiful environment offering easy access to quality transit, dining, retail and of course, our healthcare services.” Moving Hackensack Me - ridian Health headquarters directly to the Amtrak train
M id A tlantic Real Estate Journal — Healthcare — May 2026 — 9
www.marej.com
H ealthcare
Regions Bank provides debt financing for the acquisition of the Azalea building Anchor Health Properties expands Charlotte, NC footprint with 151,993 s/f MOB acquisition C We are eager to be good stew- ards of the Azalea building going forward.”
property’s location and its role in supporting on-going outpa- tient care - reinforcing why this asset was an ideal fit for our programmatic investment strategy.” Caldwell Rose and Mike Wiles with NAI Southern Real Estate represented the buyer in the transaction. Re- gions Bank provided debt financing for the acquisition. As the new owner of the facility, Anchor Health Properties will provide go forward asset and property management services to the joint venture for this investment. MAREJ
HARLOTTE, NC — Building on the compa- ny’s continued growth in the Southeast and expanding Charlotte footprint, Anchor Health Properties (Anchor) recently closed on a five-story, 151,993 s/f medical outpatient building in the SouthPark submarket. Referred to as the Azalea building, the off-market transaction was completed through a programmatic joint venture with an institutional equity partner. Located at 6324 Fairview Rd., the property sits four miles from the Novant Health Presbyterian Medical Center, a 617-bed hospital, position - ing the asset in a highly strategic location serving a well-established patient base across urban Charlotte. Originally developed in 1990 as a commercial office build - ing, the facility has naturally transitioned to medical out- patient use over time and is currently anchored by Novant Health, one of the region’s largest integrated health- care systems with more than 2,000 physicians across 850 outpatient locations and 19 medical centers. Novant first leased space at the prop- erty nearly two decades ago and has steadily expanded its presence, now occupying nearly 75% of the building. Services provided at this loca- tion include imaging, family medicine, women’s health, senior health, memory care, pediatrics, urogynecology, and rheumatology. “The Azalea building has long been recognized as one of the premier medical out- patient buildings in Char- lotte, and it is one we have carefully tracked for sev- eral years — building a rela- tionship with the ownership group throughout that time,” shared Elliott Sellers , senior vice president and partner, Investments with Anchor Health Properties. “Over the last two decades, this facility has become a hub for Nov- ant’s outpatient operations in the SouthPark market, as reflected by their more than 110,000 s/fof clinical services at the building. When the op- portunity presented itself, we were able to apply creative deal structuring to align our business plan with Novant Health’s operational goals, creating a true partnership around the building’s future.
The off-market investment was led by Rob Rumer , VP, In - vestments with Anchor Health Properties, who added, “This facility represents a strategic addition to our Charlotte port- folio and highlights the unique opportunity to secure a well- established, high-performing asset with a long-term anchor tenant in Novant Health. With nearly two decades of Nov- ant’s presence and continued growth in the building, we see significant value in both the
6324 Fairview Rd.
10 — May 2026 — Healthcare — M id A tlantic Real Estate Journal
www.marej.com
H ealthcare
Team Lizzack-Horning of The Clinical Group Healthcare CRE tightens as New Jersey demand grows in Q1 2026
T
he U.S. healthcare commercial real es- tate (CRE) market
dense population centers and aging suburban corridors. The state is experiencing
MEDICAL STATS BY COUNTY
enters 2026 facing con- strained sup- ply, steady demand, and an ongoing shift toward outpatient care. These trends are
a bottleneck in Class A medical space, with limited new cons t ruc - tion con- tributing to constrained supply in key
Darren Lizzack Randy Horning
particularly evident across New Jersey, where limited in- ventory and high occupancy are tightening availability across core submarkets. Following years of elevated borrowing costs and cautious development, medical office building (MOB) construction has dropped to its lowest level in more than a decade. De- spite this slowdown, demand remains strong, supported by the essential nature of health- care services and the continued growth of the 65+ population. Nationally, MOB occupancy remains stable, with vacancy rates between 7% and 9%, while new construction deliv- eries are projected to fall by 26% year-over-year in 2026. This supply-demand imbalance continues to drive rent growth and attract investment capital seeking stable returns. Investment activity is also rebounding, with healthcare systems and investors reposi- tioning portfolios to prioritize outpatient-focused assets and liquidity. New Jersey Spotlight In New Jersey, the shift toward outpatient care is es- pecially pronounced, driven by PHILADELPHIA, PA — CBRE facilitated the sale of the Stone Manor MOB, a 62,750 s/f medical outpatient building (MOB) and ambula - tory surgery center located at 2800 Kelly Rd. in Warrington, to Cornerstone Companies. Chris Bodnar, Bran- nan Knott, Zack Holder- man, Anthony Sardo, Cole Reethof and Jesse Greshin of CBRE U.S. Healthcare Capital Markets partnered with Tom Stone, Doug Ro- dio, Bruer Kershner and Jerry Kranzel o f CBRE’s Radnor/Philadelphia health- care leasing team to act as the advisors to the seller, Carlino Commercial Development .
healthcare hubs such as New Brunswick, Hackensack, and Cherry Hill. As a result, pre - mium assets are commanding significant rent and pricing premiums. New Jersey continues to lead in adaptive reuse strate- gies, with healthcare provid- ers repurposing vacant retail centers, big-box properties, and traditional office space into multi-specialty medical facilities. At the same time, consolidation across health systems is influencing real estate decisions, as providers look to improve efficiencies and offset rising labor costs. Despite broader national headwinds, New Jersey re- mains a target market for expansion, particularly in high-income northern and central submarkets where providers are seeking to grow market share. Northern New Jersey by the Numbers (Q1 2026): • Total sales: 38 transactions • Total sales volume: $49.0 million • Total sales square footage: 312,003 s/f • Total lease transactions: 109 • Total lease square footage:
233,555 s/f Average asking rent: $24.79 psf Across the region, MOB occupancy ranges from ap- proximately 94.5% to 96% in core submarkets, while new inventory growth remains be- low 1%. Rent growth continues to climb, particularly in high- demand corridors. With ground-up development limited, adaptive reuse has become a primary strategy. Healthcare providers are in- creasingly moving into former retail corridors throughout Bergen, Monmouth, and Cam - den counties. New projects are also requiring significant pre-leasing, often reaching 80% to 100% occupancy before construction begins. Looking Ahead As the market moves into the remainder of 2026, several factors are expected to shape the healthcare CRE landscape.
Providers unable to secure traditional medical office space will continue migrating toward retail storefronts, re- sulting in more complex lease structures and specialized infrastructure requirements. At the same time, economic uncertainty and expectations that interest rates may remain elevated into late 2026 are likely to keep development activity constrained. Investment in building technology is also increas- ing, with a focus on smart medical office buildings that integrate telehealth capa- bilities and advanced patient flow systems to maximize operational efficiency. Regulatory pressures and cost concerns are expected to drive further emphasis on outpatient care delivery, as providers shift services away from hospital campuses and for repositioning strategies where the underlying physical and locational fundamentals already exist. Erica Davidson is a direc- tor with the Healthcare Brokerage division at Lee & Associates New Jersey, advising healthcare pro- Stone Manor MOB is located along Kelly Road, less than one mile from U.S. Route 611 , pro- viding strong visibility and con- venient access to major Phila- delphia corridors including I-276
into more cost-effective, com- munity-based settings. The market is expected to remain bifurcated, with large health systems continuing to expand their outpatient footprints, while smaller and independent practices face increasing competition for high-quality space. As a result, early lease renewals, strategic site se- lection, and access to well- located assets will become increasingly critical. In New Jersey, the flight to quality may evolve into a broader scramble for space as supply remains constrained. About the Report This analysis reflects Q1 2026 trends in the healthcare real estate sector, including supply constraints, invest- ment activity, and regional performance across key Mid- Atlantic markets. MAREJ
CBRE facilitates sale of MOB & ambulatory surgery center in Philadelphia MSA and I-476. The property serves the Philadelphia MSA and ben - efits from a highly affluent area, with average household income of $169,857, accelerating senior population growth (12% 65+ population growth), and more than 234,000 residents within a seven-mile radius. MAREJ orthopedic, pain management, sports medicine, podiatry and ENT surgeries.
NJ isn’t building medical office like . . . continued from page 7
viders, property owners, and investors throughout New Jersey. Adam Tannenbaum is an associate director with Lee & Associates New Jersey focusing on health- care real estate and medi- cal office strategy across New Jersey. MAREJ
2800 Kelly Rd.
Stone Manor MOB is a class A surgery and dialysis center located in the Warrington sub- market of Philadelphia. The fa- cility was built in 2007 and was 93% leased at the time of the
sale with 9.8 years of WALT. It features a multi-specialty, high- volume ASC with two operating rooms and one treatment room to perform hand and upper extremity, joint replacement,
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