Hi-tech business parks in NJ remain active.
Single-story industrial, high-tech and warehouse space satisfies a wide range of uses from regional and corporate headquarters, to showrooms and light assembly facilities. In most cases, rental rates are lower than pure office buildings. The type of product we produce ranges from $ 6.75 per square foot tot warehouse areas, and $ 12.75 per square foot for executive offices as compared with 100% corporate space in our markets which can run as high as $ 22.00 per square foot.
In addition, flex structures accommodate diverse corporate situations. In the past year's economy, we've had as many companies looking to consolidate offices as had those looking to expand. When a firm wants to combine executive offices with computer or distribution operations, for example, the flex building provides an ideal environment.
Structures like those at our 47-acre Commercenter/Totowa business park are visually very appealing, offering aesthetic qualities in addition to practical amenities which make them very marketable. The park has six single-story flex structures and three-story office building completed. All are fully occupied or close to 100 percent leased, and space has been filling literally as fast as it becomes available, prompting us to move ahead last year with construction of Commercenter/Totowa's seventh building, 45 Commerce Way. Our optimism in the actions we took was supported when Woodward Clyde Consultants pre-leased 13,860 square feet. Combining practical and attractive design details, buildings like this typically offer small units and are easily divisible. Design details may include such "first-class" features as over-sized glass areas and unique architectural styling, surrounded by beautifully landsoaped grounds. At the same time, hightech buildings have loading docks and large bay areas, separate entrance ways, individually controlled HVAC systems, an average of 20-foot ceiling heights, heavy power and abundant on-site parking.
The buildings are also versatile in terms of executive fitups. For example, Sandvik Process Systems enlarged its headquarters for the second time since it first moved to 29 Commerce Way in 1990. The latest expansion included a dramatic two-story corporate-style atrium entrance and reception area which was easily created because the building's basic design allows for windowed office mezzanine areas. This incorporated a high-image first-impression for the company.
With the lack of virtually any new construction in the hightech marketplace, we expect 1993 to continue to produce high demand among new tenants.
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|Title Annotation:||Review & Forecast, Section III; leasing activity of business parks increases in New Jersey throughout 1992|
|Publication:||Real Estate Weekly|
|Date:||Jan 27, 1993|
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