Somerset rents continue downward trend.The I-287/78 Corridor office market consists of 103 individual buildings covering parts of Northern Somerset County Somerset County is the name of four counties in the United States and one in England. See:
Together, these properties comprise a total market size of roughly 19.9 million square feet. Among the corporations with major facilities in the I-287/78 office market are global leaders such as Verizon Communications
Verizon Communications, Inc. , Lucent Technologies, Citigroup, Pfizer, AT&T, Sanofi-Aventis, Metropolitan Life, The Chubb Corporation, AIG AIG addressee indicator group (US DoD) AIG American International Group, Inc AiG Answers in Genesis (religious group in defense of Scripture) AIG Artificial Intelligence Group AIG Australian Industry Group and many others. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Trammell Crow Company's latest numbers, the current vacancy rate stands at 11.1%, while the rate for Class A space is 13.7%. Up until the first quarter, the vacancy rate fluctuated between 19 and 20% over the past three years. However, over a five year period beginning in 2000 the vacancy rate dipped to its lowest rate of 5.0%. Of the total vacant space on the market, roughly 694,860 s/f (3.5%) is sublet sub·let tr.v. sub·let, sub·let·ting, sub·lets 1. To rent (property one holds by lease) to another. 2. To subcontract (work). n. space with the remainder being available on a direct basis. Leasing activity for the third quarter totaled 193,466 s/f. an increase from the preceding quarter. Leasing activity year-to-date stands at 448,242 s/f compared to last year registering a total of 1,926,981 s/f. Had Verizon leased back 295 North Maple in Basking Ridge, leasing activity would have reached 3.2 million square feet. The largest lease signings that took place year-to-date were with Everest Reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. at 477 Martinsville Road in Basking Ridge (122,000 s/f) PSGA PSGA Polymer Stud Grid Array (chip scale package) PSGA Pharmaceutical Sourcing Group Americas PSGA Puget Sound Grantwriters Association (Seattle, WA) PSGA Pedal Steel Guitar Association at 1150 Route 22 E in Bridgewater (80,068 s/f) Phillips Van Heusen at 1001 Frontier Road in Bridgewater (71,000 s/f) and Mercury Insurance at 200 Somerset Corporate Boulevard in Bridgewater (33,000 s/f). Average weighted direct asking rental rates for Class A space (on a gross basis, plus tenant electric) are presently $28.39 psf and $28.01 psf overall, a gradual decrease from the preceding quarter. While the average asking rate has been trending downward over the past several years, the change has been gradual, rather than precipitous. The largest contiguous block of direct Class A space currently on the market, continues to be the 365,000 s/f available at 184 Liberty Corner Road in Warren Township. It is occupied by Lucent Technologies, which has continued to downsize Downsize Reducing the size of a company by eliminating workers and/or divisions within the company. Notes: When a company downsizes, it is attempting to find ways to improve efficiency and increase profitability. It is sometimes referred to as trimming the fat. operations. In total, there are eight blocks of direct Class A space and 1 block of Class B space greater than 50,000 s/f available in the I-287/78 Corridor. There is an additional 20 blocks of direct Class A space available between 20,000 s/f and 49.999 s/f. There are presently no buildings under construction in the I-287/78 office market and no new buildings have been added to inventory in the past year. |
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