Flex space continues to have strong appeal.

By Jeffrey Kessel Partner George Kessel Associates

We have experienced a marked increase in activity for "flex" space at Commercenter/Totowa during 1994, as more companies recognize the versatility of modular buildings. The lack of available modular properties with small units in the region has resulted in slowly increasing rental rates in this market niche, with few required concessions among new tenants.

Most leasing activity continues to be generated through the real estate brokerage community. Those making inquiries include expanding companies as well as businesses seeking to consolidate and reduce expenses. Often they are service-oriented organizations that need high-end space but cannot be in pure office buildings because they require loading facilities. At the same time, standard industrial buildings lack the image that these tenants want to project.

Electronics firms are a growing source of business. For example, this Spring, Motorola Paging Division leased 20,000 square feet at the park to establish a service center. The space incorporates a complete electronics lab as well as executive offices. Motorola joins other electronics firms at Commercenter/Totowa, including Ericsson/G.E. and Thomson Electron Tubes and Devices Corporation.

Another industry that has historically been active at the park is health care. Once again, image, combined with practical features, is the allure. Most recently, Universal Hospital Services pre-leased 2,800 square feet at 140 Commerce Way for a new service branch.

Other leasing activity during the first half of 1994 included Bell Atlantic Meridian Systems, which took 5,600 square feet. Formed in 1993 as a joint venture between Bell Atlantic and Northern Telecom, Bell Atlantic Meridian Systems sells, installs and maintains telephone equipment for the mid-Atlantic region.

With the park virtually filled, we started construction in 1993 on two new buildings which are nearing completion. They include the 9,000 square-foot 120 Commerce Way and the 26,000 square-foot 140 Commerce Way. While both offer similar designs and features as the park's existing buildings, they are smaller in order to accommodate requirements starting at 2,700 square feet.