Galbreath/Summer sees full recovery in NJ markets.
Several factors are contributing to the markets strength. With no new development in New Jersey during the past five years, there is a tremendous demand for Class-A space among growing entrepreneurial companies and Fortune 500 corporations who downsized several years ago, but now require new space. Currently this space demand is being met by the retrofitting of older facilities and the absorption of Class-B buildings. However, we predict that in 1996 several new developments will be commenced.
A great example of the market's flight to Class-B buildings is the work we've done on the agency side of the business for Cigna. They foreclosed on about 840,000 square feet of properties in Florham Park and Galbreath/Summer was able to sell two 125,000 square-foot buildings and leased a third for 10 years. The strong activity in Class-B properties is good evidence that the choices have been narrowed and people are looking at alternatives to their first choices.
The investment market is robust. We are seeing a strong demand by overseas investors looking for corporate quality office acquisitions. These sales are being driven by Korean, German, Canadian and Swedish investors who recognize the opportunities. Our company has established an Investment Sales Division led by an international real estate executive who works in partnership with our affiliated company in Europe and Asia, Savills/Galbreath.
Northern New Jersey is also experiencing a transformation in the nature of brokerage services. Our clients are no longer contacting us to merely fulfill space requirements, but they are looking for a strategic partner to advise them on how best to maximize their real estate usage and investment. Being able to integrate brokerage, management, investment sales and tenant representation has enabled Galbreath/Summer to enjoy one of our best years in 1995 with 1.5 million square feet in transactions representing an aggregate value in excess of $100 million.
An example of Galbreath/Summer's unique ability to advise clients, renovate older facilities and reposition them in the market is 1639 Route 10 in Parsippany, NJ, a General Electric Investments Property. Two years ago, this 150,000 square-foot office building was vacated when its sole tenant, an insurance company, left the state for business reasons. The virtually obsolete building underwent a significant renovation, led by The Galbreath Company's New York office. The facility was subsequently transformed into a Class-A building which attracted such notable tenants as G.E., Delta Dental and Hero's World. Currently, 1639 Route 10 has only 15,000 square feet remaining. The leasing of 1639 Route 10 is being handled by Galbreath/Summer's Morristown office.
Two impressive 1995 transactions for Galbreath/Summer were the $6.7 million sale era 150,000 square-foot office/industrial building in Mahwah and the lease of a 157,000 square-foot building to the U.S. Postal Service.
Galbreath/Summer is one of New Jersey's premier real estate service organizations, combining the global resources of the Galbreath Company with the regional market strength of the Alexander Summer Companies. Galbreath/Summer acts as a strategic partner with corporations, financial institutions and private investors providing them with comprehensive brokerage, management, and development services. In the United States alone, the company manages over 90 million square feet and has developed more than 60 million square feet, while aggregate brokerage transaction volume exceeds $2 billion. Internationally, the Savills Company is one of the largest real estate firms in Europe, Asia Pacific and South Africa.
Douglas H. Haynes President The Galbreath Company/Alexander Summer Division
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|Title Annotation:||Galbreath Co.; Alexander Summer Co.; New Jersey commercial real estate market|
|Author:||Haynes, Douglas H.|
|Publication:||Real Estate Weekly|
|Date:||Mar 20, 1996|
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