The right properties for the right time
There are commercial real estate opportunities in the greater Princeton area, despite a lag in demand during the first six month of 2006. NAI Fennelly is poised to take advantage of these opportunities on behalf of commercial real estate clients.
“For the first time ever, New Jersey had more people move out of state than moved in,” said Jerry Fennelly, president, NAI Fennelly. “That can negatively impact corporations, and the commercial real estate market. The good news is that our governor is taking action by instituting a new bill to ‘incentivize’ people and businesses to come back to New Jersey.”
New Jersey isn’t alone. Other factors effecting markets across the country include offshoring jobs, higher energy costs and rising interest rates. Fennelly is taking a proactive stance, looking for growth areas that can benefit his clients.
“While parts of New Jersey can be pricey — New York City is outrageous,” Fennelly explained. “Rents in midtown are pushing corporation to look elsewhere. We expect to catch some of that activity as businesses look to amenity-rich central New Jersey.”
NAI Fennelly is actively marketing to financial companies seeking better data security. Security is of the utmost importance in the financial services sector, and NAI Fennelly has an attractive, local solution.
“The Technology Center at Princeton brings world-class data storage and security to companies looking for a redundancy solution,” Fennelly said. “Five years after 9/11, financial service companies are starting to aggressively move their data centers to a better location. With data center relocation often comes corporate relocation — a win-win.”
Fennelly says there’s a long checklist of what makes a safe data center site, including size, distance from nuclear power plants, dual power and fiber, the ability to access heavy power, and much more. The Technology Center at Princeton offers all this plus expansion capabilities to 800,000 square feet.
“It’s perfect for security-minded companies,” he added. “And, corporations that relocate are pleased by the additional features — such as on-site cafes, free parking, 56,000 square feet bunker basement space, and conference rooms — which often are absent from large city properties.”
With the company’s primary market has been the greater Princeton area for the last 20 years, NAI Fennelly offers global real estate services. NAI has 230 offices around the world, employing 3,400 real estate professionals.
NAI Fennelly, 3525 Quakerbridge Road, Suite 908, Hamilton, 609-520-0061.
GVA Williams Buschman
Reckson University Square to offer unparalleled Class AA office space
The largest speculative building ever built in Princeton is taking shape on the northeast corner of Route 1 and Alexander Road. When completed, it will provide tenants with better-than-Class-A office space and amenities.
“We call it Class AA, due to its extraordinary floor plate, location and features,” said Steve Tolcash, executive vice president of GVA Williams Buschman, which will be leasing the property. “This Reckson property will be the most prominent building on the corridor.”
Totaling an impressive 313,000 square feet, Reckson University Square will tower five stories high. Its polished granite facade with reflective glass windows and manicured landscaping with pond are indications of its upscale nature. The building features a two-story lobby connecting the east and west entrances with a gallery of artwork, wood columns and tri-colored granite tile flooring. The unique floor plan offers up to 12 corner windowed offices per floor.
“Each floor is 62,000 square feet, which is an incredibly efficient floor plate,” said Tom Romano, senior vice president of GVA Williams Buschman. “Large tenants will gain tremendous efficiencies by consolidating space on such a large, open floor plate.”
In addition to the spacious accommodations, the property’s amenities make it Class AA. Reckson University Square will include a state-of-the-art health club with men’s and women’s locker rooms, showers and saunas; a full-service cafe, a shared conference facility; concierge service; and 24/7 security system. Business security is a big priority: To protect data in the event of a power failure, the building is equipped with back-up generators.
GVA Williams Buschman is seeking larger tenants looking for world-class office space to lease in Reckson University Square. There also are opportunities for smaller tenants interested in at least 10,000 square feet. Tolcash notes the building will fill fast, and encourages interested businesses to contact GVA Williams Buschman at 609-896-1600.
GVA Williams Buschman, Princeton Pike Corporate Center, 1009 Lenox Drive, Lawrenceville 08648. 609-896-1600. Fax: 609-896-1753.
Larken Associates’ properties meet medical professionals’ needs
More than three decades leasing to all types of medical tenants has made Larken Associates New Jersey’s specialist in providing build-to-suit medical office space.
“We know what medical professionals want and need,” said Victor Kelly, executive vice president of Raider Reality, which has the exclusive right to represent all of Larken’s properties as the leasing broker. “Our team — architects, engineers, and construction professionals — have deep experience building medical suites.”
This extensive experience also has made Kelly the area’s “go-to guy” in the medical space leasing arena. He routinely works with physicians, dentists, hospital staff, and other medical professionals to match Larken properties with their needs. A recent call from St. Clare’s Health System resulted in a Parsippany partnership involving 17,000 square feet over 10 years.
“What makes us different is our ability to totally cater to medical professionals,” Kelly said. “We know they’re busy with their practices and patients, so we step in and handle everything. Our team is knowledgeable, considerate and nice — there’s no worry when you work with us.”
One key way Larken Associates accommodates medical professionals is by staying in constant contact with them and their business administrators, whether that’s during the day, at night, or on weekends. Additionally, since the Larken team has completed countless medical and dental suites, its architects and engineers are “ahead of the game.” This can translate to cost savings born from such experience.
The newest Larken Associates professional medical complex is Courtyard at Amwell in Hillsborough. Located just off Route 206 on Amwell Road, the property is 9 miles north of downtown Princeton and 7 miles south of the Somerville Circle. Medical office space at this location is available for lease, or to buy as condo properties.
Courtyard at Amwell includes two building totaling more than 14,000 square feet of build-to-suit. Kelly notes the buildings are situated on a beautifully landscaped lot, with ample parking and on-site handicap accessibility. Other amenities include a private bathroom and kitchenette available for each suite, and high speed internet access.
Two other Larken Associates professional medical projects currently are “coming out of the ground:” Raritan Commons off of Route 31 in Flemington, and Greenwich Commons on Route 22 in Greenwich Township. Raritan will offer 67,000 square feet of build-to-suit in Hunterdon County, while Greenwich will offer 43,000 in Warren County.
“Larken Associates’ properties are first-rate,” added Kelly. “Plus, our team’s professional medical expertise, attention to detail and personal service takes the worry out of building professional medical space. We’re literally just what the doctor ordered.”
Physicians, dentists and other medical professionals can learn more at www.larkenassociates.com.
Larken Associates, 249 Homestead Road. Building 5, Unit 11. PO Box 6989. Hillsborough. 08844. 908-874-8686. Fax 908-874-6064.
Maceo Realty LLC
Maceo’s Pennington property offers industrial and office options
A prime Pennington site has become available, putting a total of 9,500 square feet on the market to lease.
Maceo Realty LLC has taken over the former Pennington Athletic Club site at 1595 Reed Road, adjacent to the Merrill Lynch complex, and has converted it back to an industrial park. Office and warehouse space can be built to meet each tenant’s needs at this convenient location.
A 6,000 square foot space boasts warehousing, including an active loading dock, overhead door, and warehousing rack. This is attractive to companies interested in distribution, considering the site’s close proximity to Mercer County Airport. This space also includes a 500 square foot office space.
The 3,500 square foot space offers great flexibility, including a mezzanine office overlooking the warehouse. The two locations can be combined for 9,500 square feet of continuous space.
The build-to-suit facilities at 1595 Reed Road in Pennington are close not only to Mercer County Airport, but also to I-95. There is ample, free parking in this bucolic suburban location.
Maceo Realty LLC already has three tenants at this location: Direct Group, a direct mail fulfillment company which relocated its corporate offices to Suite 100; Pennington ATA, a karate studio teaching martial arts to clients of all ages and abilities in Suite 200; and Princetel Inc., a leading manufacturer of fiber optic components, occupying Suite 300.
Space still is available. For information, contact John Tomenchok, 609-575-6473.
Maceo Realty LLC, Space available: 1595 Reed Road. Pennington. 609-575-6473.
Quiet Times in the Princeton Office Market
To say that the Princeton office market is flat may be an overstatement, but the sound of silence is certainly evident as new buildings stand waiting for tenants,” said Vincent Marano, COO of National Business Parks.
Marano, who is charged with the management of College Park at Princeton Forrestal Center, an 11-building office complex along Route 1, said a quiet “wait and see” attitude is prevalent in the market as it enters the year’s fourth quarter. But he points out that the buildings most impacted are those newly constructed with top of the market rents adding that that the 815,000-square-foot College Park is 98 percent leased. “We have several big advantages. Among them are extremely competitive rents currently in the mid-$20 range versus a $35 to 36.50 asking rents for new buildings and we enjoy a stable tenant base that has chosen to grow within College Park.”
The stalled market is not confined to Princeton. “There have been no major relocations to Central New Jersey. At the same time, several of its largest employers — AT&T, PSE&G and Lucent among them, have shrunk their workforce or left the state. In Princeton, of the some 620,000 square feet of space contained in three newly-completed inventory buildings, only 4,600 square feet have been leased to date. Economic growth is slowing while companies wait out results of the mid-term elections, the conflict in the Middle East, and the price of energy.
And while New Jersey’s overall unemployment figures are well below the national average, we are largely replacing skilled office positions with low-paying service jobs. Of course, the state’s tax climate — a recent sales tax increase from 6 percent to 7 percent plus a 3.5 percent corporate income tax surcharge and the highest property tax rate in the country — is not exactly a welcome mat to new business,” said Marano.
For the upcoming months, National Business Parks will be focusing on the leasing program for 400 College Road East, a unique 72,000 square-foot building within College Park. Most recently occupied by one of the world’s leading financial information and communication organizations until it outgrew the building and reluctantly gave up its space, the building is among the most technologically-advanced available in Princeton. Among the features of its $13 million upgrade are architecturally-sophisticated interiors, new HVAC and electrical systems, back up generators, raised floors, and an employee cafeteria.
“This building provides an unprecedented opportunity for a high level of corporate identity in one of Princeton’s most prestigious addresses. And since we are able to divide the space, it should be extremely attractive in the marketplace. We will be launching the leasing program for 400 College Road East at a luncheon for area brokers this fall,” said Marano.
With a seasoned awareness of the cyclical nature of real estate, National Business Parks and its parent, Lawrence Zirinsky Associates are also positioned to meet future demands for both office space and office/research facilities with fully-approved plans to develop two new complexes on sites adjacent to the existing College Park campus.
These are College Park 2, a five-building office/research center containing 345,000 square feet that is being developed on a 31-acre site, and College Park 3, a four-building premier corporate office center to be built on a 47-acre site. Both new complexes are being developed on a build-to-suit basis.
College Park has traditionally attracted multinational firms involved in research and development and financial services organizations. Current tenants include SES Americom; Pana sonic; Bracco Research and the law firm of Drinker Biddle & Reath.
National Business Parks, 2 Research Way, Princeton. 609-452-1300. www.collegepk.com.