25,000-sf range have only two or three options. For more than 50,000
sf, there is currently only one option. For the first time in five years,
the vacancy rate dropped below 10% during the end of Q2, according to Persson. Metropark’s vacancy rate stands at about 4%, while
in the Woodbridge/Edison area it’s roughly 24%, adds Rosenberg.
Improvements to the Metropark train station are another key
to unlocking future growth in the area. “It’s one of the reasons I
believe we’re seeing spec building at Metropark,” says Rosenberg. “The station will create more opportunities.” (See sidebar.)
Persson reveals that GVA Williams NJ is close to signing a lease
that will prevent them from offering anything larger than about
20,000 sf at the 650,000-sf Woodbridge Corporate Plaza. The 15,000-
sf deal with a local telecommunications firm will leave half a floor,
roughly 15,000 to 18,000 sf, remaining in the building.
Gross asking rents at Woodbridge Corporate Plaza currently
stand at $24 per sf, up from two years ago by $2 a foot. “By the
end of this year or January we’ll probably be at $25 a foot,” adds
Perssons. “The reason is we’re very well-leased and rents around
us are continuing to rise.”
Industrial tenants looking for space in the Exit 10/Edison submarket also have few options. “Raritan Center and Heller indicate they
haven’t got a lot of space,” says Robert Rubin, SVP at NAI James E.
Hanson, Hackensack. “The Raritan Center area has about 95,000 sf
of new construction with rents in the $5.50 range.” Recent deals at
Heller Industrial Park indicate that rates are in the $4.50-$4.85 range.
“There’s not a lot of product for sale,” says Rubin, and product for
“Companies are looking for
alternatives because of high
rents, and they’re looking for
markets with viable product.”
DREW PERSSON
GVA Williams NJ
lease is “getting thinner.” While he does anticipate more product becoming available for sale, he doesn’t foresee any fluctuations in the
rental market. “New construction has been met favorably.”
“Middlesex County is the largest industrial market in New Jersey
and is very active and strong,” adds Joel Lubin, EVP, Lee & Klatskin
Associates, Edison. “Tenants are hard to find. There are a lot of people looking to purchase, but there’s a short supply of buildings for sale.”
A sampling of product available for lease in Edison includes
151,000 sf in a 270,000-sf W/D facility owned by Vornado Realty
Trust and marketed by Lee & Klatskin. At Heller Industrial Park, a
unit of 185,000 sf in a 10-year-old building offers 36-foot ceiling
heights and will become available soon. Facilities with ceiling heights
over 25 feet generally command the highest asking rents.
“Change is what’s good for the brokerage community and right
now business is good,” observes Lubin. “There’s a large supply of
available space for lease, a big shortage of available properties for
sale and prices are very high.” —RENJ
Find out all there is to know about the Westchester
County market and meet its leading dealmakers on
December 5th, 2007 at
Crowne Plaza Hotel, White Plains NY
SPONSORS as of 10/30/07
CB Richard Ellis
GE Real Estate
Grubb & Ellis
Poduced by:
Mack-Cali Realty Corporation
NAI Friedland Realty, Inc.
Newmark Knight Frank
NorthMarq Capital
HOSPITALITY SPONSORS
CIBC World Markets
GVA Williams
Marcus & Millichap
Prudential Rand Commercial Services
Media Sponsor:
General Information | Jason Young | 212.929.6924 | jyoung@remedianetwork.com
