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While the office sector may be struggling to find its footing, the Newark submarket continues to post successes. The latest lands in a big way, marking the largest transaction in the sector in the Brick City so far this year.

Avison Young announced this week it arranged a 74,356-square-foot, long-term sublease at 494 Broad St. on behalf of the sub-landlord, Altice USA. Moving into the space is New Jersey Institute of Technology. NJIT is expected to arrive at the property this month. There, it will occupy the entire ninth and 10th floors as a centralized hub for certain non-student facing administrative functions.

According to Avison Young, the deal also represents the largest sub-lease in the state year to date. For the tenant, the move underscores a commitment to NJIT staff as well as a drive to optimize efficiency. Overall, it’s another win for the city.

Fidelco Realty Group owns the building at 494 Broad St. Avison Young Principal Drew Persson, based in Morristown, represented Altice USA along with Senior Director Frank Pagano of the Melville, N.Y., office. In-house council represented NJIT.

Making the investment

Described as a “trophy” asset, these kinds of highly amenitized, well-located Class A properties continue to draw tenants. Last year, Bank of America set a record with its 550,000-square-foot commitment in Jersey City. In practice, occupiers like NJIT see the moves as an investment for its people. The university characterized the move as strategic, and said it reaffirms a commitment to providing “cutting-edge” environments.

“Across the market we continue to see an abundance of activity by occupiers seeking high-quality space to not only meet their operational needs, but to create a vibrant environment for their employees and clients,” said Persson.

NJIT President Teik Lim highlighted that point in his remarks with the university’s announcement.

“We are excited about this strategic relocation, which underscores our dedication to continuous improvement and innovation,” Lim said. “By transitioning to 494 Broad St., we aim to optimize our resources, improve operational efficiency and create a more dynamic work environment for our administrative teams.”

In Newark, 494 Broad arrives fully furnished, according to Avison Young. The building features 350 covered, dedicated parking spots. The footprint can support up to about 800 employees across a range of spaces, such as private offices and meeting and conference rooms.

Led by Senior Vice President for Real Estate Development and Capital Operations Andrew Christ, the NJIT team collaborated with Paul Profeta, president of Paul V. Profeta Associates and a member of the NJIT foundation board of directors, on the deal.

The place to be

Located adjacent to Harriet Tubman Square, NJIT joins a vibrant and growing downtown Newark community. Other anchor institutions in the area include Rutgers Business School as well as Audible, which is making its own efforts to populate the area.

Earlier this week, the audio storytelling giant revealed the latest participants in its Business Attraction Program. As part of that work, Audible actually helps to facilitate leasing at several properties, including 494 Broad.

“This being the largest deal in the area so far this year shows remarkable faith by NJIT in Newark as a future destination for their students and staff,” Persson said.

“The addition of NJIT to 494 Broad is an incredible statement about the growth of Newark’s Downtown Arts and Innovation District,” commented Kerri Levine, principal, The Fidelco Group. “Fidelco was proud to work with Altice USA and Avison to add NJIT to our list of transformative anchor tenants as we focus on attracting partners who can enhance the city’s resurgence while becoming integral members of the surrounding community.”

“NJIT’s expansion of vital administration services office space into Newark’s downtown is evidence of our success in reinvigorating the heart of our city with a full spectrum of amenities for residents, workers and visitors,” said Newark Mayor Ras Baraka. “Beyond accessibility to metropolitan mass transit, the NJIT family can enjoy both world class and hyperlocal dining, entertainment and shopping, as well as an array of housing options and a lively, ever-changing streetscape. I’m grateful to NJIT for its continual embrace of all Newark has to offer, and for what it infuses into our city life.”