Spec building begins in Morris County.

In a market nearly void of new commercial development, Gale & Wentworth, Inc., is breaking ground on one of the first speculative office buildings to be built in Morris County since 1990.

The new four-story, 100,000 square-foot building will be part of Park Avenue at Morris County, a 170-acre, award-winning office complex developed by Gale & Wentworth in Florham Park. The campus, which is currently composed of two buildings totaling 550,000 square feet, is approved to accommodate another half million square feet of office space.

In conjunction with the groundbreaking, G&W has announced the completion of a 75,000 square-foot leasing agreement with Hewlett-Packard Company to occupy three floors of the new four-story facility. The company expects to move in by the fall of 1997.

"For the first time in years, the demand for large blocks of quality space is outpacing supply, providing the impetus for us to move ahead with our original plans for Park Avenue," said Mark Yeager, president of the G&W Commercial Group. "The early and substantial pre-commitment from Hewlett-Packard confirms the appropriateness of this decision."

Yeager expects the building to be totally committed well before completion. G&W plans to occupy a portion of the first floor, leaving only a few thousand square feet of remaining space. This pre-construction success has accelerated plans for G&W to develop another 100,000 square-foot facility on the site.

"Our access to financing through alliances with substantial investment partners and our full-service, in-house capabilities allow us to react very quickly to the needs of the marketplace," noted Yeager. "Additional new construction is a natural next step for us as we continue our program to satisfy quality requirements."

Hewlett-Packard, one of the world's largest manufacturers of electronics products and systems, already has a strong Morris County presence. The new office will house 150 employees of the California-based Open Systems Software Division, currently occupying space on the Exxon campus in Florham Park. G&W Construction Services, Inc., has been engaged to perform the tenant build-out, which will include customized elements such as a 12,000 square-foot, raised-floor computer room.

Called 300 Park Avenue, the new building has been designed by Rotwein & Blake of Florham Park to blend with the existing two structures on the campus, yet make a strong architectural statement of its own.

"The market is still looking for the first-class workmanship and materials with which we have always been identified," said Thomas J. Walsh, president of G&W Construction Services. "It will project the same high quality image as the others, but on a smaller scale."

According to architect Lance Blake, the rose-colored granite and reflective glass structure will be distinguished by a 2.5-story entrance lobby featuring a barrel-vaulted, skylit roof.

"Although this lobby is smaller, it will be brimming with sophisticated detail, like granite and marble-patterned flooring and walls, and dramatic, architectural lighting," said Blake. "Every single surface will be richly finished in either stone or veneer or wood."

Tenants will also benefit from sheltered parking, an on-campus cafe, and nearby dining, hotel/conference, and recreational facilities. Further, the site boasts an unparalleled location just minutes from Routes 287 and 24, and is in close proximity to all major highway networks. The complex's appeal to high-end corporate users is confirmed by its tenant roster of world-class names like Andersen Consulting, Merrill Lynch, and Schein Pharmaceutical.

While the expansion of Park Avenue's development bodes well for G&W, Yeager cited broader significance. "As a culminating event in the rebounding real estate cycle, the advent of new speculative construction is reason to be optimistic about the future of the industry," he observed. "However, recovery has been uneven and not every area can support this next step. It is a testament to the fundamentals and strength of the Morris County market that some of the first of this exciting new development is happening here."

Gale & Wentworth, headquartered in Florham Park, is one of the state's largest and most successful real estate investment and services organizations. The award-winning firm currently maintains a 14.1 million square-foot commercial portfolio which is 97 percent occupied.