Printer Friendly
The Free Library
22,719,120 articles and books

Corporate real estate in NJ enjoys a stable market.

Over the past several months, the New Jersey office market has received a healthy shot of adrenaline adrenaline (ədrĕn`əlĭn, –lēn): see epinephrine. , once again regaining constant and sustainable leasing activity, after a brief period of slackened enthusiasm in which corporate requirements for large blocks of space declined noticeably.

Though it could be argued that the New Jersey office market has certainly come back with a vengeance since the real estate decline of the late 1980's and early 1990's, the activity of the current revived market is ideal since leasing has increased, but not at such a frenetic fre·net·ic or phre·net·ic   also fre·net·i·cal or phre·net·i·cal
Wildly excited or active; frantic; frenzied.

[Middle English frenetik, from Old French frenetique
 rate as to drive rents skyward sky·ward  
adv. & adj.
At or toward the sky.

skywards adv.
, which could lead to a sharp market correction Market correction

A relatively short-term drop in stock market prices, generally viewed as bringing overpriced stocks back to a level closer to companies' actual values.

Essentially, the New Jersey office market has reached a level of prosperity in which commercial real estate managers can be cautiously optimistic op·ti·mist  
1. One who usually expects a favorable outcome.

2. A believer in philosophical optimism.

. There is product to meet demand and statewide vacancy remains at a healthy, sustainable level with no herald for speculative construction. After all, it is unrealistic to believe that single-digit vacancy rates can be permanently maintained in any market.

Though overall leasing activity is strong, tenants are increasingly savvy, have very specific requirements when selecting a building, and will exercise the options that a market with some latitude provides them. While landlords are finding they need to make few or no concessions to both retain and attract quality tenants, tenants are particularly concerned that buildings can support not only their physical space needs, but their technological requirements as well.

At Reckson, we have been "lighting up our buildings" with a technology infrastructure that allows for high-speed Internet See broadband.  access, video teleconferencing See videoconferencing. , and fiber-optic networks, among other high-tech amenities. We have an agreement with a communications technology Noun 1. communications technology - the activity of designing and constructing and maintaining communication systems
engineering, technology - the practical application of science to commerce or industry
 services provider that tenants can choose to handle all such needs. Having this provider in place not only allows our tenants to purchase technology services at a favorable rate, but comes with the added benefit of immediate hook-up and access to a primary or redundant services specialist available at all times to troubleshoot problems and handle special requests.

Another key issue that landlords must remember is the pace at which all businesses are moving ahead today. The current unprecedented period of prosperity within the U.S. commercial real estate market is a direct outgrowth of our national healthy economy and the present U.S. position of advantage in the global market. Corporations presently can only afford to work with cooperative landlords that can assist them in quickly finding appropriate space, executing leasing agreements expediently ex·pe·di·ent  
1. Appropriate to a purpose.

a. Serving to promote one's interest: was merciful only when mercy was expedient.

 and making arrangements for timely build-outs.

Just this summer, Reckson completed a deal with pharmaceutical giant Hoffmann-LaRoche that typifies the fast pace of the market. Hoffmann-LaRoche sought to obtain 70,000 square feet of space and be moved into that space by early fall. We met with company in July, and by August had secured a lease at the 1255 Broad Street building in Clifton, NJ. Reckson has just completely repositioned the property as a Class A facility with high-tech amenities. We are assisting Hoffmann-LaRoche with architecture, design and construction services through our own in-house departments - a key factor that allowed us to make the deal other landlords could not. The interior fit-out construction began within five days of the lease signing, and Hoffmann-LaRoche will move into its new space in October.

Because the New Jersey office market is among the most prosperous in the entire country, it is highly competitive. Despite the market's health, with today's accelerating business philosophy, a successful landlord must be willing to provide the services that anticipate the growth and advancement of the tenant's business, such as technology amenities, without sacrificing the old-fashioned ability to execute leases quickly, outperform Outperform

An analyst recommendation meaning a stock is expected to do slightly better than the market return.

Exact definitions vary by brokerage, but in general this rating is better than neutral and worse than buy or strong buy.
 tenants expectations on build-outs, and most importantly Adv. 1. most importantly - above and beyond all other consideration; "above all, you must be independent"
above all, most especially
, provide responsive, superior management.
COPYRIGHT 1999 Hagedorn Publication
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1999, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

 Reader Opinion




Article Details
Printer friendly Cite/link Email Feedback
Title Annotation:Spotlight on: New Jersey: Construction Blooms in Garden State
Author:Schaevitz, Mark
Publication:Real Estate Weekly
Article Type:Brief Article
Geographic Code:1USA
Date:Sep 1, 1999
Previous Article:Former department store to become Monclair commercial center.
Next Article:New Newark Riverfront Stadium ready in just six months.

Related Articles
Bergman acquires Paramus, NJ office building.
Ground broken for Eagle Rock III in East Hanover, NJ.
Hartz Mountain's partnership with Garden State blossoms.
Tight class A market offers challenges, opportunities.
NJ office market marked by brisk construction, rising rents.
Despite new construction, Princeton remains a tight market.
Full NJ waterfront sparks interest in Newark.
NJ commercial vacancy rates even lower than reported.
Jersey City's hot Waterfront gets credit for recent RE boom.
Central Jersey ideal spot for distribution, warehouses.

Terms of use | Copyright © 2014 Farlex, Inc. | Feedback | For webmasters