For owners of office buildings, constructing “spec suites” as ready-to-occupy office spaces can be a no-fail way to attract tenants — if these spaces are designed well. Read full article here.
Large buildings may soon get report cards for energy efficiency
Just like restaurants post letter grades in their windows, large buildings may soon have to broadcast their energy efficiency ratings. Read full report here.
Growing tech firms now drive high-end office market from Seattle and SF to Manhattan
When F5 Networks signed a lease last spring for 28 floors in the Mark, a new 48-floor office and hotel edifice in downtown Seattle, the deal capped a hunt for new headquarters that in 2019 will provide the company with room to grow and its employees with nearby transit, restaurants and other amenities. Read the full report here.
Three Keys to a Successful Property Budget Review
A budget is your vision of an asset and a forecast of potential earnings. While creating a portfolio or property budget, our deniable need to put everything under the microscope to review and analyze blurs the view. Read the full report here.
How to Prepare Your Multifamily Property for Winter
4 Commercial Property Management Trends You Need to Know
As a property manager, it’s wise to regularly evaluate market trends so you and other stakeholders can make the right decisions for your business moving forward. Read the full report here.
Welcome to the Gig Economy
If you haven’t heard of it, you will. Gig workers are playing a growing role in how corporate space users are redefining their staffing. Read the full report here.
5 Areas to Focus on for Better Workplace Productivity
A new study shows just how impactful a poorly planned workplace is on employees, which can negatively impact performance. Read full report here.
New BOMA Standard: What Size Is Your Office Building Really?
Why Retail Landlords Are Turning to Apartments to Shore Up Their Properties
Construction has started on a 23-story upscale apartment tower at Westfield UTC, a one-million-sq.-ft. outdoor center in San Diego, but the project is much more than the redevelopment of an upscale retail center owned by the Sydney, Australia-based Westfield. Read the full report here.
Save Big with Three Tips for More Efficient Vendor Management
Managing vendors and processing payables are significant cost drivers for real estate companies. Read the full article on irem.org
Making NJ More Attractive to Millennial Workers
Princeton Pike Corporate Center Sells
Mercer Oak Realty was recently involved as the seller’s representatives during the sale of Princeton Pike Corporate Center.
County Clerk Lines Up Deal for Temporary Space
Have you met our affiliate, Princeton Property Management?
Princeton Property Partners (PPP) is pleased to announce the recent addition of a senior manager and formation of Princeton Property Management (PPM), an affiliate company that primarily concentrates on project and construction management.
Eric McHugh, a 20 year property and construction management veteran, joins PPM as Vice President. Most recently Mr. McHugh managed a 1,000,000 sf office and flex portfolio, overseeing tenant and capital improvement projects, developing budgets and aiding in leasing transactions. He has worked with landlords and tenants of all sizes, from publicly traded REITs to family-owned investment groups. During his tenure, Mr. McHugh consistently delivered quality projects on time and within budgets while simultaneously managing large portfolios, tenant relations and a team of technicians, contractors and office administrators.
“We are very excited to add Eric to our team. As our project and construction management business has grown, we have searched for a senior level manager that we felt could not only manage the same high quality projects PPP strives to be a part of, but also grow the already expanding property and construction management business line and continue to raise the bar for our clients.” explains Hans vanTartwijk, a Partner at PPP.
Princeton Property Partners will continue to work on investment and development projects in the Princeton region as Princeton Property Management focuses on construction and property management assignments.
Thank you for your donations!
We would like to take a moment to thank everyone for participating in our TASK Donation drive at PrincetonSouth this past month- it was a great success! Bags and bags of holiday gifts and non perishable food items were delivered to the Trenton Area Soup Kitchen last week. It could not have happened without everyone’s help. Thank you again!
We hope you are all enjoying your holidays and look forward to a bright 2015.
Despite Saturday morning’s rain, over 100 people still came to the Trenton Y5K as 5K runners or 1 mile walkers. This year’s event raised $60,000 for the Trenton YMCA.
Thank you to all sponsors & participants!
The Mercer Oak Realty team had a great time and looks forward to next year’s event being bigger and better than ever. Hope to see you there!
For more on the Trenton YMCA visit: http://trentonymca.org/
Join us Tomorrow: Trenton Y5K
Mercer Oak Realty is proud to be sponsor of the Trenton YMCA’s second annual Y5K this Saturday, October 3rd. This is Mercer Oak’s second year sponsoring and attending the event.
So far this year, the Trenton YMCA has raised over $55,000 with the Y5K. Those proceeds fund the programs the organization puts in place for the Trenton Youth and community.
There’s still time to take part in the fun- you can register online or the morning of the event.
Visit http://trentony5k.com/ for details.
Visit http://trentonymca.org/ to learn more about the Trenton YMCA.
The Princeton Address: Why Companies Need It
Our CEO, Aubrey Haines, chats with NJBiz about the importance of the Princeton address for Companies in the area.
“Most international companies want the Princeton name because they want to be able to say their U.S. headquarters is in a place where other people from around the world will recognize,” said Aubrey Haines, CEO of Ewing-based Mercer Oak Realty — which specializes in leasing Princeton locations.
Read the full article on njbiz.com here.
Local LifeScience Aquisition, Redevelopment on Route 1 & BMS Makes 650,000 sf Announcement: News Around Mercer County
Integra LifeSciences to acquire Medtronic’s ENT, laparoscopy equipment lines
Integra LifeSciences Holdings Corporation and Medtronic Inc. announced Wednesday an agreement in which Integra will acquire Medtronic’s MicroFrance and Xomed manual ENT and laparoscopy medical equipment lines for approximately $60 million. Read the full story on njbiz.com here.
Owners of long-vacant American Cyanamid site in West Windsor begin redevelopment discussions
Hotels, restaurants, parks, places of worship and schools — these are just some of the possibilities that the owners of the American Cyanamid site on Quaker Bridge Road presented before the Township Council Monday night. Read the full story on nj.com here.
Bristol-Myers announces plans for 650,000 sq. ft. Lawrenceville building
Pharmaceutical giant Bristol-Myers Squibb announced Tuesday that it plans to build a 650,000-square-foot office building in Lawrenceville near the intersection of Interstate 295 and the Princeton Pike on company-owned property acquired back in 2001. Read the full story on njbiz.com here.
Princeton Forrestal Village Hopes to Add Residential to the Mix
Mixed use without residential doesn’t work. After 28 years, Princeton Forrestal Village is proposing multifamily residential units.
“It’s a nice, cute pedestrian village surrounded by a sea of parking that never really succeeded,” Robert Schenkel, senior director of development at Lincoln Equities Group, said. “It was a high-end boutique mall, a discount mall and lots of things in between. It had a lot of different developers over the years and we’re the most recent who think we’re going to succeed.”
Read the full story on centraljersey.com here.
RealShare New Jersey Conference: Triumphs & Challenges
Conference sparks talks of triumphs, challenges in New Jersey commercial real estate market
It was around 9 a.m. at RealShare New Jersey, one of the year’s biggest commercial real estate conferences, and Joe Taylor had some friendly advice for the audience.
“If you’re not having fun in real estate right now,” said Taylor, president of Matrix Development Corp., “you ought to leave before lunch.”
Read the full story on njbiz.com here.
Addressing New Jersey’s White Elephants
Over the past decade, the campus-style complex model slowly became outdated as technological advances, downsizing and outsourcing negated the need for workers to be in an office setting, Advance Realty president and CEO Peter Cocoziello said.
The above is a quote comes from an nj.com article titled: Developer: Plan for Bridgewater’s Sanofi Research Campus will attract young professionals and discusses Advance Realty’s plans to take a former Sanofi U.S. Research and Development Campus and breathe life into it- read the full article here.
Trenton Neighborhoods Get $1.1M Investment
Wells Fargo announced Thursday that it plans to invest more than $1.1 million in grants to provide funding toward various Trenton neighborhood revitalization programs. (read full story on njbiz.com here)
GrowNJ Incentives Program Updates
Recent articles cover some of the success & struggles of the GrowNJ program as New Jersey works to keep companies and jobs within the State.
Even in the case of Panasonic, which received a well-documented $102.4 million tax credit in 2011 to relocate its North American headquarters to Newark from Secaucus, incentives aren’t always enough to keep a company in New Jersey.
Quality of life. That’s what Elmwood Park-based Sealed Air, a Fortune 500 manufacturer of Bubble Wrap and other packaging, cited last month as one of the main reasons it’s leaving New Jersey for North Carolina.
After talk of leaving the state, a major transportation equipment provider and chassis leasing business has decided it will remain in the township thanks to an incentive grant from the New Jersey Economic Development Authority.
Good News for NJ Jobs
U.S. jobs growth stays on a roll; recovery starts to catch on in N.J.
“The tone of the economy nationally has become more positive, and there’s every reason to expect we’ll get some spillover effect in New Jersey,” said Patrick O’Keefe, an economist with the accounting firm CohnReznick, which has an office in Roseland.
Read the full story on northjersey.com here.
Commercial Real Estate Notes from Around the State
NJ pharma: Real estate needs to reflect the changing needs of the industry
For Pernix Therapeutic Holdings, it was time to find a new home.
The Houston-based pharmaceutical company had new executives and a new $65 million war chest from investors, paving the way for a growth plan focused on specialty drugs. But that meant moving its headquarters to a state with a labor force that could help it build a new senior management team from the ground up. (read full story on njbiz.com here)
Unemployment dips to 6.6 percent in New Jersey
Officials say New Jersey’s unemployment rate inched down to 6.6 percent in June, its lowest level in more than five years. (read full story on sfgate.com here)
Trenton: New Mayor, New Plan
Mercer Oak Realty was in attendance last week at the recently renovated Wyndham Garden on West Lafayette Street in the Capitol City as MIDJersey Chamber welcomed Trenton’s newly-elected Mayor Eric Jackson and learned more about the Trenton250 plan.
Opening remarks were delivered by the Honorable Eric Jackson, a Capitol City native and Fairleigh Dickinson graduate. Jackson had a 17 year career with the City of Trenton before taking the position of City Public Works Director in Plainfield, NJ and then returning to Trenton in July, this time as Mayor.
Mayor Jackson addressed the business community and made it clear that he was grateful for their support and aware of how important local industry is to helping Trenton realize its full potential.
“Having a Mayor in office who understands the role that the local business community can play in the revitalization of Trenton is key. The current GrowNJ tax incentives make Trenton an especially attractive option for a large company headquarters, creating a nearly rent-free scenario for up to 10 years in certain cases. For example, a property we represent, the proposed Vista Center, is an approved 25-story LEED platinum office tower located directed across from the Trenton Transit Center. That incentive package, coupled with a business friendly atmosphere and responsible government is integral to drawing a large company and up to 1,000 employees to Trenton. An influx of professionals spending their days in Trenton, many of them eventually moving there to be closer to work, would do wonders to kick-start the economy.” explains Sab Russo, President of Mercer Oak Realty.
The Trenton250 team presented its concept for achieving a community driven long-range Master Plan to guide Trenton through its 250th Anniversary (which will be in 2042). The concept behind Trenton250 is to gain a deeper understanding and knowledge of Trenton- its strengths and its weaknesses- and use that to create a vision that capitalizes on the city’s unique assets, and addresses its problem areas. Trenton250 is hoping to engage the community in every step of the process through various in-person and online forms.
Check out Trenton250.org to learn more about the plan and become part of the discussion.
We look forward to seeing Trenton move forward into a bright future.
Commercial Real Estate Updates
Report: N.J. incentives to bring bump to suburban offices in Q2
With a little help from the state’s revamped business incentives, a few New Jersey suburbs have seen bumps in office leasing in recent months, according to a new second-quarter analysis by the brokerage firm Avison Young. (read full story at njbiz.com)
New COAH rules set stage for new battle: Developers, advocates leery of new guidelines
The fight over affordable housing in New Jersey is far from over. (read full story at njbiz.com here)
Diamonds to dinosaurs: NJ towns struggle under weight of massive office park vacancies
They’re visible from many New Jersey highways – hulking, seemingly endless structures surrounded by oceans of asphalt parking lots and carefully planned landscaping. (read full story at nj.com here)
News from Around Mercer County
A bill that would expand the state’s incentive offerings for film and digital media projects has passed the state Senate and is now headed to an Assembly committee. (njbiz.com)
When executives of Burlington Coat Factory threatened to move the company from its longtime home in Burlington Township to Bensalem, Pa., Gov. Chris Christie’s administration enticed them with $41.2 million in incentives to build a bigger headquarters a few miles up Route 130 in Florence. (nj.com)
The latest proposal for an office part for the Bristol-Myers Squibb Co., on Princeton Pike at Lewisville Road, gained the township Planning Boards approval on June 16th. (centraljersey.com)
Special Olympics New Jersey: Mercer County Hosts a Celebration
The games took place state-wide, with most of the events finding homes in Mercer County. Princeton University, The College of New Jersey, Peddie School, Mercer County Park, Rider University, The Hun School, The Lawrenceville School and Arm & Hammer Park all hosted athletic competition.
The Special Olympics have a clear mission:
“To provide year-round sports training and athletic competition in a variety of Olympic-type sports for children and adults with intellectual disabilities, giving them continuing opportunities to develop physical fitness, demonstrate courage, experience joy and participate in a sharing of gifts, skills and friendship with their families, other Special Olympics athletes and the community.”
That mission was successfully realized during the 2014 Summer Games. Mercer Oak Realty had the opportunity to donate to the games, and was even lucky enough to catch some of the Powerlifting event at The College of New Jersey where we met athlete Willie Diggins, a 46 year old powerlifter from Fayetteville, NC who was proudly handing out his trading cards after an impressive 3rd place victory the day before. In addition to hosting the event, New Jersey fared well in the medal count. Best of luck to all the athletes in their future competitions!
PrincetonSouth Welcomes Independent Travler
Leasing Continues at PrincetonSouth Corporate Center
The Independent Traveler, Inc., a subsidiary of TripAdvisor Inc., signs lease for 16,000 sf office
Mercer Oak Realty proudly welcomes The Independent Traveler©, Inc., a subsidiary of TripAdvisor© Inc., to the expanding tenant roster at PrincetonSouth Corporate Center. The corporate park has seen over 40,000 sf of new leases and expansions since the start of 2014.
The Independent Traveler publishes three online travel sites, including Cruise Critic, the world’s largest cruise review site and online cruise community. The company also publishes Family Vacation Critic and IndependentTraveler.com.
“Choosing PrincetonSouth as our new location was an easy choice to make,” says Kathleen Tucker, President and Founder of The Independent Traveler, “The location is close to our current offices, right off of 1-95 and the high quality space with abundant natural light will create a very attractive work environment. As an expanding online publisher, future expansion possibilities and the ability to customize our new space to meet our specific needs were important considerations.”
100 & 200 PrincetonSouth Corporate Center boast 267,000 sf of Class “A” office space and are currently over 70% leased. The PrincetonSouth campus is located directly off of I-95 at Exit 4 in Ewing, NJ and is comprised of the multi-tenanted 100 & 200 buildings, 500 PSCC (Church & Dwight’s 250,000 sf HQ), 701 & 801 PSCC (FMC’s 112,500 sf R&D campus), and 300 & 400 PSCC (2 proposed built-to-suit sites for up to 350,000 sf). On site amenities include the full-service Gallery Café, fitness center, conference room and the 134 room Marriott Springhill Suites.
About The Independent Traveler, Inc: The Independent Traveler®, Inc., a publisher of online travel resources and travel forums, produces three popular travel sites: Cruise Critic®, the leading cruise review site and cruise community on the Web, Family Vacation Critic® a dedicated family travel site and IndependentTraveler.com®, one of the first travel sites on the Web, launched in 1990. Together, these sites reach more than five million travelers each month, helping them to plan the best vacations, explore new places and share their experiences with other travelers. In 2007 the company was acquired as a subsidiary of TripAdvisor Inc. Cruise Critic, Family Vacation Critic, IndependentTraveler.com and The Independent Traveler are either trademarks or registered trademarks of The Independent Traveler, Inc. in the U.S. and/or other countries.
In the News: Week of June 1st
GE subsidiary to move jobs from Princeton, Piscataway
GE Healthcare Life Sciences confirmed today its plan to consolidate operations near Boston, which will impact many of its 400 New Jersey employees — including job loss for some. (read the full story on njbiz.com here)
West Windsor planning board OKs seven buildings at Carnegie Center
Earlier this month, West Windsor township’s planning board granted real estate developer Boston Properties approval to construct seven buildings on one of its Carnegie Center parcels off US Route 1. (read the full story on nj.com here)
REBA Breakfast: What is “Green” & Why You Should Know More About It
Come learn the basics of “green” building- what it is and how it may impact your and your clients business needs. Princeton Area residential & commercial companies share their success stories & lessons learned about one of the fasted growing trends in real estate.
On June 12th, Joshua Zinder (Joshua Zinder Architecture + Design), Vincent J. Scozzari (V.J. Scozzari & Sons) and Jon Jensen (MaGrann Associates) will speak during this Princeton Chamber of Commerce Real Estate Business Alliance breakfast.
Mercer Oak Realty’s team will be in attendance at the event to join in the discussion and are available to discuss how these green practices can help favorably shape your company’s real estate plan.
This is the Real Estate Business Alliance’s 4th event of the year- most recently the topic of GrowNJ Incentives was discussed. Earlier in the year the 2014 Real Estate Forecast was presented. We look forward to another informative discussion!
You can register for the event at the Princeton Chamber of Commerce’s website, here.
Thursday, June 12th 2014
7:45 am to 9:30 am
Nassau Club of Princeton
6 Mercer Street
Princeton, NJ 08540
Bristol-Myers Squibb details new plans for Lawrence property
Many plans have been made for a 75.4 acre piece of property on Princeton Pike at the intersection of I-95, but so far a giant oak tree has had the land all to itself. (read full story on nj.com here)
$58 million in Incentives Awarded to New Jersey Companies
New Jersey Sees 6.9% Unemployment Drop
New Jersey officials say the state unemployment rate dropped to 6.9 percent for April, its lowest level in more than five years. (read full story from The Trentonian here.)
AvalonBay officially files lawsuit against Princeton officials
PRINCETON — After giving Princeton attorney Trishka Cecil a heads-up phone call Tuesday afternoon, AvalonBay officially filed suit against the town, council, Mayor Liz Lempert and several municipal department heads today,hoping the court can intercede in environmental matters concerning the 280 residential units the developer is proposing for the former University Medical Center site. (read the rest of the article on nj.com)
Pharma Companies Find Homes at PrincetonSouth
We are happy to announce over 21,000 sf of new tenants/expansions at 100 & 200 PrincetonSouth Corporate Center.
Mercer Oak Realty has continued to lease-up space at PrincetonSouth in the past year and recently increased its Pharmaceutical industry tenancy with new leases by Celator Pharmaceuticals and Essential Pharmaceuticals. Existing tenant, Antares Pharma has also recently added a second expansion to their current office.
“We are very happy to call PrincetonSouth our home, and even more excited to continue to grow here.” says Robert Apple, EVP & CFO of Antares Pharma. “The location of the building is extremely convenient and the ability to grow into, and fully design new space is key- it allows our company to move forward without any logistical hindrances.”
100 & 200 PrincetonSouth Corporate Center boast 267,000 sf of Class “A” office space and are currently 65% leased. The PrincetonSouth campus is located directly off of I-95 at Exit 4 in Ewing, NJ and is comprised of the multi-tenanted 100 & 200 buildings, 500 PSCC (Church & Dwight’s 250,000 sf HQ), 701 & 801 PSCC (FMC’s 112,500 sf R&D campus), and 300 & 400 PSCC (2 proposed built-to-suit sites for up to 350,000 sf). On site amenities include the full-service Gallery Café, fitness center, conference room and the 134 room Marriott Springhill Suites.
Join Us! Significant Incentives Available for Companies Staying In or Relocating To New Jersey
The GrowNJ program encourages companies to create jobs and make capital investments in the Garden State. By moving from Pennsylvania (or any other state) a 25 employee company could earn at least $750,000 in incentives money, while a 50 employee company could bring in a minimum of $1,500,000. New Jersey companies can also benefit from the incentives, depending on circumstances.
On March 25th, Jay Biggins, Executive Managing Director of Biggins Lacy Shapiro & Co, will discuss how GrowNJ’s groundbreaking incentives can impact commercial real estate growth in the area, opportunities across Central New Jersey and specifically the Princeton Region.
Mercer Oak Realty’s team will be in attendance at the event to join in the discussion and are available to discuss how these incentives can help favorably shape your company’s real estate plan.
This is the newly formed Real Estate Business Alliance’s 3rd breakfast event. The most recent event featured the 2014 Princeton Real Estate Forecast and was a great success, bringing 160+ attendees together to discuss the future of the real estate markets in Princeton. We look forward to another informative discussion!
Tuesday, March 25th 2014
7:45 am to 9:30 am
Nassau Club of Princeton
6 Mercer Street
Princeton, NJ 08540
Airport Corporate Park now 70% occupied
Mercer Oak Realty is happy to announce a recent lease transaction at 100 Airport Corporate Park.
Horizon NJ Health, a subsidiary of Horizon Blue Cross Blue Shield of New Jersey, has leased 23,145 sq. ft. of office space at Building 100 in Airport Corporate Park, bringing the company’s total space occupancy at the park to 41,874 sq. ft.
Airport Corporate Park, a 168,500 sq. ft., two-building complex located at 370 Scotch Road, Ewing, NJ is now 70% occupied. There is currently 49,756 sf available in the park. More information can be found here.
Sab Russo of Mercer Oak Realty, LLC represented GF Princeton, the Landlord at Airport Corporate Park and Steve Tolkach of Newmark Grubb Knight Frank represented the tenant, Horizon NJ Health.
Construction Begins on Hill Wallack LLP’s New Building
Mercer Oak Realty is proud to announce that Hill Wallack LLP has begun construction on their new office building at 21 Roszel Road in West Windsor. Mercer Oak Realty represented Hill Wallack LLP in the 48,000 sf lease.
This new location will accommodate Princeton-based Hill Wallack LLP’s growing workforce and re-invent their office’s work environment, boosting overall productivity.
“Hill Wallack LLP is the largest and one of the fastest growing law firms in the Princeton area and we wanted new space to accommodate our expanding operations at our Princeton headquarters” said Bob Bacso, Managing Partner. “The move to 21 Roszel Road allows us to serve our increasing client base more effectively as well as provide a state-of-the-art conference center for client meetings and to host many of the civic organizations that we are involved in.”
Sab Russo of Mercer Oak Realty, LLC represented Hill Wallack LLP, while Milt Charbonneau of Cassidy Turley represented the landlord, a joint venture of Andy Gottesman and Mountain Development. Mercer Oak Realty has closed over 70,000 sf of law firm leases in the past year.
Princeton Law Firm Signs 22,000 sf Lease
We are happy to announce that our client, Archer & Greiner, has signed a long-term lease with Boston Properties for 22,000 sf at 101 Carnegie Center in Princeton, NJ.
The 22,000 sf at 101 Carnegie Center gives Archer & Greiner space to expand their operations and offers a more client friendly meeting space and conference rooms. The professionals at Archer & Greiner will also benefit from proximity to amenities such as the Hyatt Regency Hotel (next door), a cafeteria and meeting space in the 101 Carnegie Center Building, and from significant main lobby and common area renovations to be completed in the Building.
“We had grown on several occasions in our old space and we wanted to have all our attorneys and staff in a more cohesive working environment”, says Jeff Gordon, Managing Partner of the Princeton Office. Stacey Sinclair, the firm’s Chief Operating Officer, added: “Mercer Oak was able to help us achieve our goals for the new office as part of a very efficient process that yielded the best economic terms.”
Aubrey Haines of Mercer Oak Realty, LLC represented Archer & Greiner, the tenant, while Boston Properties represented itself in the transaction. Mercer Oak Realty has closed over 70,000 sf of Law Firm leases in the past year.
Haines chats with The Times of Trenton about the Mercer County Office Market
Aubrey Haines spoke with Brendan McGrath of The Times of Trenton about the Mercer County Commercial Real Estate market.
Despite the success of the building and the current strength of the market, local development of large commercial office buildings has been slow to pick up coming out of the recession. There has been little new construction of this type in the area other than the 300 Carnegie Center building, said Aubrey Haines, CEO at Mercer Oak Realty. And that slowness on the part of developers has contributed to a growing shortage of space.
“When you’re looking for smaller spaces you have a wide range of choices,” Haines said. “If you’re at 50,000 or 100,000 square feet, options are limited.”
While the recession pushed down demand for a few years, it also suppressed development.
“That creates more pent-up demand so when the market comes back they need a lot of space in a hurry,” Haines said. “There’s almost no new supply expected to come online.”
Demand is outpacing supply in the market, Haines said, but until rental rates for high quality office space increase it will be difficult to convince large banks to finance the development of new buildings. The suburban nature of the local market leads financiers to be hesitant to lend despite growing demand, he said.
You can read the full article here: Commercial market going strong, especially in Mercer County, real estate agents say on nj.com.
Aubrey Haines Presents 2014 Real Estate Forecast
Princeton Office Market to experience Class A Space Shortage
Mercer Oak Presents Princeton Office Market Report
Princeton, NJ – Over 160 Real Estate professionals from the Princeton Market gathered on Tuesday January 28 at the Hyatt Regency to discuss the 2014 Real Estate Forecast.
Mercer Oak’s Aubrey Haines presented The Princeton Office Market Report and Forecast. Haines highlighted Mercer County’s below average unemployment rate (5.3%, compared to a national 7.3%), a lull in new Class A construction and a healthy absorption rate as key indicators to suggest that there will be a leaner building inventory in the market, creating upward pressure on Class A rental rates. Mercer Oak’s research indicates a possible shortage of Class A Office space in the next 3 years, a phenomenon not witnessed since 1995.
Haines also spoke of a trend towards newer, healthier work environments. “New construction will be the predominant means of satisfying corporate growth in the Princeton market over the next 5 years. The average building in Princeton is 24 years old… Many companies are looking at the health and welfare of their employees as a way to attract and maintain the best and brightest workforce. New building design techniques employ green and health oriented strategies. Since employee costs are typically 85% of an office tenant’s cost structure and real estate is typically 10%, a 1% increase in productivity can justify a significant investment in real estate… We anticipate that this trend will accelerate as the economic picture in Princeton continues to brighten.”
The event was hosted by the Princeton Regional Chamber of Commerce’s REBA (Real Estate Business Alliance) and included a panel discussion from Judson Henderson of Callaway Henderson, Aubrey Haines of Mercer Oak Realty and Paul Anastos of Mortgage Master, Inc., and was moderated by Tom Gates, also of Mortgage Master, Inc.
Princeton Office Market Report Available here: Princeton Office Market Report
The Times of Trenton covers the event here: Strong Mercer County real estate market bolstered by low unemployment rate, experts say