6B — February 8 - 21, 2013 — New Jersey — Mid Atlantic Real Estate Journal
www.marejournal.com
C entral N ew J ersey
Cassidy Turley’s fourth quarter 2012 report Despite Hurricane Sandy, Central NJ office market posts notable results at close of 2012
OMERSET, NJ —The Central New Jersey office market posted positive results for the fourth quarter, S
market also proved to be a standout with a flurry of activ- ity in 2012. The 258,993 s/f 111 Wood Ave. South, which was delivered less than two years ago, is now entirely leased after securing tenants such as Eisner Ampner and Hatch Mott Mac- Donald. Both firms signed on for more than 80,000 s/f. A number of submarkets in Northern New Jersey also reported respectable leasing activity. The Bergen Central submarket recorded the high- est amount of positive ab- sorption in the fourth quarter with 71,036 s/f and a total of 194,909 s/f for the year. No-
table lease transactions include Orbcomm’s 31,159 s/f lease at 395 West Passaic St. in Ro- chelle Park and NewYork Life’s 26,811 s/f deal at 250 PehleAve. in Saddle Brook. Additionally, in the Meadowlands submar- ket, Vitamin Shoppe took three floors at 300 Harmon Meadow Boulevard in Secaucus totaling 56,281 s/f. On the construction front, two buildings totaling 262,000 s/f were delivered in the fourth quarter in Central New Jersey with the 250,000 s/f, 500-600 Princeton South Corporate Center accounting for the ma- jority of new space. Household consumer products/packaged goods company Church & Dwight will occupy the site in the second quarter. In North- ern New Jersey, two smaller office buildings were delivered totaling 95,670 s/f: 1 DeForest Ave. in Summit, which is now fully leased, and 109 Christo- pher St. in Jersey City. Remaining new construc- tion is extremely limited in Central New Jersey with the majority of new projects being smaller class B properties in the 15,000 to 20,000 s/f range. Additional development in Northern New Jersey remains scarce and current projects un- der construction are primarily 100% pre-leased, single-tenant buildings. Changes in unemployment were encouraging, with a net of 20,200 private sector jobs added in the state in 2012. As of November, four out of 10 pri- vate sector industries reported employment gains including professional and business ser- vices, trade, transportation and utilities. “The positive trend of pri- vate sector employment is a good sign for the market,” added New Jersey-based office specialist Charles Parmelli , SIOR, CCIM of Cassidy Turley. “However, corporate consolida- tions and a push toward more efficient office floor plans will continue to present challenges to substantial office space ab- sorption in the short term.” Notable office transactions in the fourth quarter include: • In a sale-leaseback with Bank of America, a joint ven- ture of Fortress, Normandy Real Estate Partners, Sansome and Skyline Pacific Properties acquired the 1.8-million s/fMer- rill Lynch Hopewell Campus in Pennington for $365 million, or approximately $203 psf. n
16.9% from 17% in the previ- ous quarter. In Northern New Jersey, the office market re- mained relatively unchanged with a vacancy rate of 15.4% and negative net absorption of 54,903 s/f. “Hurricane Sandy brought devastating damage to inven- tory and caused corporate setbacks through weeks of lost productivity across New Jersey, yet these results for Central New Jersey are en- couraging, if not hopeful,” said Cassidy Turley managing principal Raymond Trevisan. “The results also highlight the resolute strength and natural
resilience of the office market in a number of the state’s key submarkets.” For example, the Somerset- 78 East submarket experienced sizable positive absorption in the fourth quarter with 296,339 s/f of demand. The submarket’s vacancy rate at the close of the year was among the lowest in Central New Jersey at 13% percent, dropping from 14% percent over the quarter. In one notable transaction, the 371,400 s/f class ACenter 78 in Warren captured EMC Corpo- ration as an anchor tenant in a 81,683 s/f lease. The Woodbridge-Edison sub-
despite feel- ing the ef - fects of Hur- ricane Sandy, a c c o r d i n g to a fourth quarter 2012 Office Mar- ket Repor t published by Cassidy Turley,.
Charles Parmelli,
TheCentral NewJersey office market experienced 121,699 s/f of positive absorption, causing the vacancy rate to move to
16 Million Square Feet Heller Industrial Parks ■ Edison ■ South Brunswick ■ Somerset ■ Avenel ■ Harrison / Kearny ■ Chicago ■ Dallas ■ Grand Prairie,TX ■ Houston
Ammenities:
Leasing for less in Every Market. n Huge NJ Foreign Trade Zone n Energy Efficient Warehouse Lighting n 60% Lighting Bill Reduction n NJ Solar Energy Electric Rebates n Subsidized Daycare
Call your Broker, call us, or visit www.hellerpark.com
2012 Leasing total to date: 2,442,438 SF
205 Mill Road, Edison NJ 08837 (732) 287-4880
Made with FlippingBook - professional solution for displaying marketing and sales documents online