NJBIZ

Princeton office building hits 90% occupancy

An office property in Princeton is celebrating a new tenancy milestone, with the 72,000-square-foot Class A building hitting 90% occupancy.

On May 24, The Birch Group and JLL announced a series of five lease agreements that bolstered the ranks at the property located at 700 Alexander Park. The relocations and extension include:

Medical devices company Lingraphica, which offers aphasia and online speech therapy, signed a long-term lease for 9,000 square feet of office space on the first floor of the three-story building to relocate its back-office operations and consulting staff from Carnegie Center on nearby Route 1.
Semiconductor and infrastructure software designer and manufacturer Broadcom signed a long-term lease for 6,444 square feet on the second floor in a relocation from Ewing.
Wimba, the title agency subsidiary of the Roc360 financial services platform, signed a lease for its first permanent office at 700 Alexander Park, according to the announcement, relocating from a nearby coworking space to occupy 2,509 square feet on the third floor.
Law firm Rubin, Ehrlich, Buckley & Przekop PC signed a long-term lease for 4,306 square feet to relocate to the property from Lawrence in the second quarter of 2023.
Long-term tenant Buchanan Ingersoll & Rooney PC signed a lease extension for its 13,682 square feet office on the third floor.

JLL Managing Director Thomas Romano and Senior Vice President Vinny DiMeglio represented The Birch Group in all of the transactions; the firm also represented Lingraphica and Broadcom.

“We are delighted to welcome these prestigious new tenants to 700 Alexander Park and to reaffirm our partnership with long-time tenant, Buchanan Ingersoll & Rooney,” Chris DeLorenzo, executive vice president at The Birch Group, said in a statement. “These transactions validate our decision to acquire the property with the aim of outperforming the market at a time of tremendous uncertainty for many tenants and we look forward to leasing the remaining space in the near future.”

Jersey City-based The Birch Group added 700 Alexander Park to its portfolio in 2021 as part of a $47 million deal that also included the adjacent, 141,176-square-foot 600 Alexander Park, which is completely occupied by research and consulting company Mathematica Inc. The buildings are located within the larger Alexander Park, a multi-building complex consisting of more than 350,000 square feet of office space located within walking distance of the Princeton Junction train station.

“As a near 25% vacancy persists with[in] the Princeton office market, 700 Alexander Park stands out thanks to its responsive ownership with a tenant-first philosophy and commitment to streamlining the leasing process,” DiMeglio said in a prepared statement.

Originally built in 2000, AMI Management oversees property management at 700 Alexander Park, underscoring ownership’s commitment to servicing its tenants, according to the announcement.

“With the ability to quickly provide premier office space, we anticipate great interest in the remaining 8,300 square feet of divisible space and feel very good about the future of 700 Alexander Park as part of a market-leading campus populated by world-class tenants,” DiMeglio added.

Those prospects are bolstered further by upgrades that are underway at 700 Alexander Park, including to its lobby and amenities with a focus on modern aesthetics and functional layouts. The campus also offers maintained outdoor space with walking and bike paths from its location directly off Route 1, affording access to other markets and retail, dining, child care, hotel, fitness centers and more.

The Birch Group added another trio of Mercer County properties to its portfolio in 2022 in a deal valued at $70 million.

In the area

At former Marcal site, logistics development starts vertical construction

Four years after a fire tore through Marcal Paper’s former factory in Elmwood Park, vertical construction is underway on the industrial development that will rise in its place.

Crow Holdings Development recently announced it started that work on its new, 206,826-square-foot logistics hub at the 1 Market St. location, which it acquired last year in a joint venture with Atlas Holdings, Marcal‘s majority shareholder.

Texas-based Crow Holdings expects to generate $34 million in economic activity at the site along with 140 short-term jobs during the construction process.

With a scheduled delivery date of September 2023, the project is expected to support the equivalent of 240 full-time jobs, according to Crow, and produce $630,000 in property tax payments to Bergen County, the municipality and the local school district.

“We are thrilled to begin construction of this state-of-the-art new facility that will transform the former Marcal site into one of the region’s most advanced logistics offerings,” said Clark Machemer, Crow Holdings Development’s senior managing director for the Northeast region, in a statement. “1 Market St. will not only create jobs and contribute to the growth of the county’s economy, but it will also provide much-needed logistics space in one of the country’s most land-constrained markets, delivering a bright new future for the town and this historic site.”

The former site of the Marcal Paper factory, 1 Market St. in Elmwood Park will house a 206,000-square-foot logistics hub from Crow Holdings Development. - JLL — “We are thrilled to begin construction of this state-of-the-art new facility that will transform the former Marcal site into one of the region’s most advanced logistics offerings,” said Clark Machemer, Crow Holdings Development’s senior managing director for the Northeast region. – JLL

With a design that reflects the iconic architecture of its former occupant and located 17 miles from Manhattan, the nearly 12-acre property offers immediate access to Interstates 80 and 95. According to Crow, the speculative development will feature:

40-foot clear ceiling heights
32 loading docks
Two drive-in doors
Parking for 56 trailers and 198 cars, and
7-inch-thick concrete floors designed to accommodate heavy goods and machinery

JLL handled the sale of the Marcal property – where the company reopened with a smaller plant in 2020 – and serves as exclusive agent for the site. Vice Chairman David Knee, Executive Managing Director Chris Hile, Senior Vice President Ignatius Armenia and Vice President Ryan Milanaik are marketing the property among e-commerce and logistics occupiers increasingly under pressure to move goods competitively and quickly, according to the firm.

In its first quarter insights in the industrial sector for 2023, JLL reported that despite record construction activity and moderation in preleasing, vacancy rates are still constrained.

The catalyst behind that demand was new logistics space, like Crow’s project in Elmwood Park. According to JLL, in Q1 that kind of Class A product accounted for more than half of leasing activity.

“Despite macro-economic headwinds, the New Jersey industrial market remains resilient as 3PL’s, food and beverage, and consumer goods companies seek well-located, modern facilities in close proximity to the world’s major population hubs,” Knee said. “1 Market St. will reinvent a historic factory into an economic engine of the 21st century, generating jobs, contributing to the local tax base and meeting market demand for effective logistics solutions.”

Woodland Park shopping center sells for $18M

West Falls Plaza shopping center in Woodland Park has changed hands in a transaction negotiated by JLL Capital Markets.

The firm announced the $18 million sale of the 90,945-square-foot retail complex located at 1730 Route 46 May 16. JLL represented the unnamed seller and procured the buyer, an affiliate of Northeast Capital Group.

According to Senior Managing Director Jose Cruz, who led the team representing the seller along with Director J.B. Bruno, Senior Managing Director Kevin O’Hearn and Associate Michael Zlotnick, capital markets are reacting favorably to retail from both a debt and equity perspective.

“The center’s location and future upside potential were the two drivers that investors focused on during the marketing,” he stated.

In its U.S. Retail Outlook from the first quarter of 2023, JLL reported neighborhood centers – like West Falls Plaza – had the highest annual rent growth among retail property types, at 4.7%. For Q1 nationwide, the average rent per square foot at these complexes was $23.05.

The 3 miles surrounding West Falls Plaza are home to a population of 125,000 with an average household income of $125,000.

According to JLL, West Falls Plaza is situated in a dominant retail hub in the heart of the Passaic Route 46/23 submarket. There, national retailers include: World Market, Home Depot, Best Buy and Petco. The center also benefits from neighboring properties, like the Kohl’s-anchored Plaza 46.

Retail roundup

Piscataway warehouse sells for $26.5M

A private investor acquired a 101,381-square-foot industrial warehouse facility in Piscataway.

JLL Capital Markets announced May 10 it worked on behalf of a private investor to arrange the $26.5 million sale of 100 New England Ave. through a sale-leaseback.

The 8-acre property is fully occupied by Strato Inc., according to that company’s website, a leading manufacturer for the rail and transit industry.

With connectivity to regional highways – Interstate 287 at Exit 7 is a quarter mile away, Interstate 95 is eight miles away and Port Newark is approximately 30 miles away – the property features six loading docks, one drive-in door, 24-foot clear heights and an acre of access parking, JLL said.

The JLL Capital Markets team representing the seller was led by Managing Directors Marc Duval and Jordan Avanzato, Executive Managing Director Frank Recine, Directors Nicholas Stefans and Jason Lundy, and Senior Managing Director Jose Cruz.

According to Avanzato, the property drew nearly 30 offers, which he said during “uncertain times,” speaks to its uniqueness.

Added Duval, “Over the last 12 months, conversations with owner-users around sale-leasebacks of their assets have become more prominent. The advantages of a sale-leaseback in current environment will make it a more likely option for owners.”

In 2022, total U.S. sale-leaseback volume (874 unique transactions) bested the year prior (789), according to data released in March by SLB Capital Advisors, marking an 11% increase from highs hit in 2021 and 2019. The total dollar volume also set a record: $31.4 billion, up by 14% from 2019 ($27.6 billion).

And the New York-based real estate advisory firm expects that trend to continue throughout the year. “[T]he sale leaseback market offered investors and issuers better stability than conventional debt and equity financing,” SLB Managing Partner Scott Merkle said. “Debt and equity markets were much more volatile, with the issuance window opening and closing several times during the year.”

Added SLB partner Matt Wrobleski, “The key sale leaseback theme early in 2023 is that relative to other forms of corporate funding, sale leasebacks are even more attractive from a cost of capital standpoint.”

The Northeast had the highest dollar volume for sale-leasebacks in the fourth quarter of 2022, according to the report, pricing $2.5 billion of deals, versus $1.6 billion in the prior quarter.

More sale–leasebacks

JLL arranges $290M refinancing for Bergen Town Center

The 1 million-square-foot Bergen Town Center in Paramus, a shopping center anchored by Whole Foods and Target, recently secured $290 million refinancing.

JLL exclusively represented the borrower, Urban Edge Properties, to secure the loan through New York Life Insurance Co. and MetLife Investment Management, the professional services firm specializing in real estate and investment management announced April 25.

The JLL Capital Markets Debt Advisory team was led by Senior Managing Directors Scott Aiese, Claudia Steeb and Jon Mikula with Director Alex Staikos.

With frontage along Route 4 – Paramus’ busiest retail corridor, with counts of more than 150,000 vehicles per day, according to JLL – Bergen Town Center is located in one of the nation’s most productive retail submarkets, boasting annual sales higher than any other ZIP code in the U.S. According to Paramus, combined with Garden State Plaza and Paramus Park Mall, the three shopping centers post more than $5 billion in sales annually in the municipality.

Built in 1957, the property is 97% leased and growing – Crumbl Cookies and Haagen Daz were announced as tenants earlier this month, along with Journeys, Bond Vet and Perfumania.

With 70+ options, retail tenants at Bergen Town Center include:

•ULTA •Chase Bank •Kohl’s •Marshalls •HomeGoods •Burlington •Nike •H&M •CVS •Ruth’s Chris, and others.

Investment grade tenancy represents 44% of GLA at the property, according to JLL. The shopping center provides a weighted average remaining lease term of nearly seven years and a weighted average lease tenure of almost 10 years.

Bergen Town Center welcomes more than 11 million customers annually, JLL said. With 4,500 parking spaces, the property offers access to Highway 17, Interstate 80 and the Garden State Parkway. It is 9 miles from Manhattan, a trip that can be made in under an hour via mass transit.

“Bergen Town Center is a best-in-class asset operating in one of the strongest retail markets in the country,” said Aiese. “Under the astute and hands-on management of Urban Edge, it is well-positioned to continue to thrive and we are pleased to have delivered accretive financing from lenders who share in ownership’s commitment to providing a stellar brick and mortar shopping experience.”

There are 11.3 million consumers within a 20-mile radius of the property, according to JLL, noting Bergen County’s average household income is $167,050.

According to its website, Urban Edge Properties’ portfolio includes 35 properties in the Garden State.

Based in New York, the New York Stock Exchange-listed real estate investment trust focused on managing, acquiring, developing and redeveloping retail assets in urban communities, primarily from Washington, D.C., to Boston. The company owns 76 properties representing a cumulative 17.2 million feet of gross leasable space.

JLL tapped to lease Class A Bergen County HQ opportunity

A rebranding effort is coming to the 103,349-square-foot office building located at 208 Harristown Road in Glen Rock.

JLL announced the refresh April 13, along with its appointment as exclusive marketing and leasing agent for the Class A property owned by 208 Glen Rock Associates LLC. Executive Managing Director Frank Recine and Senior Vice President Derek DeMartino are heading the assignment.

The real estate services company will lead the rebranding, with a focus on the 50,000 square feet of contiguous space and signage opportunities – capitalizing on its location on Route 208, which sees some 70,000 vehicles per day, according to New Jersey Department of Transportation data cited by JLL – that are available at the four-story building.

“208 Harristown Road is an iconic office property that presents a highly visible corporate headquarters opportunity,” Recine said in a statement, adding the firm looks forward to showing the space to prospective tenants seeking “high-quality space in a premier Bergen County asset.”

In a statement, DeMartino described the project as a “premier mixed-use office and medical building with prime visibility, signage and impressive accessibility.”

“The property also offers the kind of high-end, turnkey space that employers are seeking as they adjust to new workplace trends that place a premium on highly amenitized Class A space,” DeMartino added.

Tenants looking for larger footprints, in particular, have been drawn to Class A space, of late. In its First Quarter 2023 Office Insights report, JLL found that nearly 70% of leases for more than 10,000 square feet were signed in that class.

Additionally, JLL cited an increase in health care consolidation that is driving demand for well-located properties that offer access to care in modern locations to patients.

Situated off of Route 208, 208 Harristown Road offers easy access to Routes 4, 17, 20 and 21, JLL said.

Located on a 6-acre campus, conveniences at the property include a fitness center, conference room, on-site security, and parking and loading areas. Additionally, Glen Rock’s local shopping and restaurants are a short drive away, in addition to the Garden State Plaza Mall.

JV secures $34.5M to build Bergen County industrial development

A new two-building warehouse and distribution center is coming to Bergen County from a joint venture between Invesco Real Estate and Morristown-based The Hampshire Cos.

On April 6, JLL Capital Markets announced it arranged $34.5 million in construction financing for the development of 30 Cross St. in Bogota and Ridgefield Park on behalf of the JV borrower. The three-year, floating-rate loan with extension options was secured through Texas Capital Bank.

The JLL Capital Markets Debt Advisory team was led by Senior Managing Directors Michael Klein, John Rose and Jon Mikula and Associate Ryan Carroll.

The more than 11-acre Bergen County site will comprise two buildings totaling 187,530 square feet with 36-foot clear ceilings, 52-foot by 50-foot column spaces, 21 dock-high doors and 268 automobile parking spaces.

According to JLL, 72% of the U.S. population lives within a 24-hour drive of the location.

In its Fourth Quarter 2022 Industrial Insights report, JLL said construction activity in the sector was at an all-time high, with 28.7 million square feet being built – more than two-and-a-half times the average for 2017-2021.

But even amid the flurry of development and a normalization in demand, vacancy rates remain tight – reported then at 1.9% – giving landlords the ability to push asking rents more than 20% higher year-over-year, the report said.

The financing announcement comes the same week as another milestone for the JV, which secured $39 million to acquire a more than 221,000-square-foot warehouse and distribution property in Teterboro.

ICYMI

Hampshire, Invesco secure $39M for Teterboro warehouse acquisition

JLL Capital Markets secured $39 million in acquisition financing on behalf of a joint venture borrower for a fully leased, 221,448-square-foot warehouse and distribution property in the Meadowlands.

The Nationwide-provided, fixed-rate loan was announced April 4 by JLL, which arranged the funding for 333 North St. on behalf of Morristown-based The Hampshire Cos. and global real estate investment manager Invesco Real Estate.

Third-party provider Fashion Logistics, which specializes in warehouse management, distribution and supply chain management services for the lifestyle and fashion industries, occupies the 8.38-acre Teterboro property. According to JLL, the building has 22-foot clear heights, 15 dock-high doors, 11 drive-in doors, 95 parking spaces for cars and 15 trailer parking space.

The JLL Capital Markets team representing the borrower was led by Senior Managing Directors Michael Klein, John Rose and Jon Mikula, and Associate Ryan Carroll.

According to a statement from Klein, well-located industrial properties are still in demand by banks and life insurance companies, “despite the current inefficiencies in the capital markets.”

In JLL’s Fourth Quarter 2022 New Jersey Industrial Insights report, the Meadowlands region had a vacancy rate of 1.9%. Average asking rents were recorded at $20.46 per square foot for the region, above the statewide average asking rent of $15.54 per square foot. Looking ahead, the report anticipates continued rent growth, though at a more regulated pace that seen in recent years.

“Nationwide’s prior experience with the sponsors and understanding of the Meadowlands industrial market allowed them to seamlessly close this loan in an accelerated timeframe with an attractive rate and prepayment flexibility,” Klein said.

Added Mikula, “Lender pipelines are down as we start the year and therefore are very aggressively pursuing compelling investment opportunities.”

In October 2022, the Hampshire-Invesco JV secured construction financing through BMO Financial Group, with the help of JLL, to raze an existing building and develop a 111,660-square-foot Class A warehouse in the region.

JLL taps Onyx exec Karafiol to lead Bergen County expansion

JLL is expanding its brokerage ranks with the addition of Adam Karafiol, who will serve as an executive vice president based in the firm’s Rutherford office.

With more than 20 years of experience, Karafiol comes to the team from Woodbridge-based Onyx Equities LLC, according to an April 3 announcement, where he served as senior vice president of leasing for nearly 10 years.

In a statement, Tim Greiner, broker lead for JLL’s New Jersey brokerage business, said Karafiol’s record includes leasing for “some of the best assets in the market.” In the new position, he’ll focus on business in Bergen County.

“He will leverage the deep tenant relationships he has developed at Onyx in a way that will help JLL continue its strategic growth in the region,” Greiner said.

Previously, Karafiol led leasing at One, Two and Four Gateway Center in Newark—1.6 million square feet that Onyx owns as part of a joint venture. WebMD is among the recently secured tenants at the massive and storied property. Karafiol also oversaw leasing for Onyx’s overall office portfolio across New Jersey and the tri-state area, which covers 10 million square feet and includes the former home of AT&T in Morristown, where Morgan Stanley and Zelis both signed leases in the fall.

As the company has expanded, Onyx Managing Principal and co-founder John Saraceno said in a statement that Karafiol has been a “tremendous asset.”

“His move to JLL only strengthens our relationship with the JLL team and Adam,” Saraceno added. “We wish him well in this latest career chapter and are confident that Onyx and Adam will continue to do great things together.”

“I have collaborated with JLL on many projects over the years and I am excited to now align with the firm as it continues to cement its reputation as a market leader in the region,” Karafiol said. “The JLL brand represents a powerful value proposition at a time of uncertainty and opportunity for tenants in the market today and I look forward to leveraging their platform to achieving client goals.”

Karafiol started his real estate career as a broker with Newmark in Manhattan, according to the announcement, later working with Macklowe Properties and Cohen Brothers Realty before establishing his own real estate services firm, Heath West Realty Corp., in New York and New Jersey.

JLL facilitates 100K-square-foot Princeton submarket office property sale

The Crossroads Corporate Center office property in Lawrence Township – part of the Princeton submarket – has a new owner.

JLL said March 28 it represented Gilbane Development Co., the seller, in the transaction with a joint venture formed by Simone Realty Inc., which acquired the asset. Financial terms were not disclosed.

The JLL team was led by Senior Managing Directors Jeremy Neuer, Jose Cruz and Kevin O’Hearn; Managing Director Thomas Romano; and Directors J.B. Bruno and Jason Lundy.

Since it was built in 1991, the 100,925-square-foot property located at 3150 Brunswick Pike has undergone several renovations, according to JLL. The three-story building offers a dramatic, two-story lobby; exterior balconies; and a high parking ratio.

A company representative did not immediately respond to a question concerning the property’s occupancy rate at the time of sale.

Situated on more than 45 acres, the Mercer County site also includes a large pond with scenic views.

Crossroads Corporate Center is a 100,925-square-foot office property located in the Princeton submarket. – JLL

The property is located at the interchange of Interstate 295 and U.S. Route 1, lending it strategic access along with high visibility.

While JLL identified “diminishing leasing volume” as a theme for the Garden State’s office sector through 2022 in its Fourth Quarter sector report for that year, the firm said it expects office occupiers to continue looking for new space – as opposed to renewals – in 2023. Approximately 62% of transactions for more than 10,000 square feet covered new leases last year—the highest percentage in a decade, JLL pointed out. Over the past two years, the figure represented an uptick, as well, from the recorded “just over 50% of deals” in new leases.

In the Princeton submarket, JLL reported a total vacancy rate of 22.2%, under the state’s 24.5%, with average asking rents trending toward the top of the pack at $28.90 per square foot (the state average was $30.03 per square foot).

Simone Realty is based in Lawrence Township.

Journal Square apartment building lands $58M refinancing

In Jersey City’s Journal Square, a luxury, mid-rise apartment building secured refinancing to the tune of $58 million.

JLL Capital Markets represented the borrower, 3 Journal Square Urban Renewal LLC, to arrange the seven-year, fixed-rate loan through a life insurance company, the firm announced March 15.

The property features 240 units – a mix of one-, two- and three-bedroom residences – with bright, open layouts, full-size washers and dryers, chestnut vinyl flooring, granite kitchen countertops, stainless steel appliances, custom kitchen cabinetry and quartz bathroom countertops.

Community amenities include a state-of-the-art health and fitness center, a yoga studio, a resident lounge with fireplace and billiards, a rooftop deck with Manhattan skyline views and lounge areas and more.

The JLL Capital Markets Investment Sales Advisory team was led by Senior Managing Director Thomas Didio, Senior Director Thomas Didio Jr., Director Gerard Quinn and Analyst John Cumming.

The ribbon-cutting at 3 Journal Square. — The June 2017 ribbon cutting at 3 Journal Square. – MARIO MARROQUIN

“This financing is a testament to the quality of product the developer has delivered to the market,” Didio said in a statement. “The lender stepped up to the plate and delivered very strong economic terms to allow the partnership to continue operating this tremendous asset in a burgeoning submarket of Jersey City. JLL is grateful to play a role in continuing to grow the relationship between the developer and lender teams.”

The property made its debut in 2017, developed by Panepinto Properties and venture partner Hartz Mountain.

“This project is the final phase of a development that began in 1980,” Joe Panepinto, CEO and president of Panepinto Properties, said at the time. “The city owned this property and it was vacant for 30 years, paying no taxes. They put the property up for sale. First time they put it up, no one bid. Second time they put it up, I was the only one who bid.”

Located at 2955 John F. Kennedy Blvd., 3 Journal Square offers walkability to area amenities, in addition to the Journal Square Path Station. Automobile travel is convenient due to its proximity to major north-south and east-west corridors and connections to the New Jersey Turnpike and Pulaski Skyway.

Lincoln Equities taps JLL to lease new Class A industrial

Lincoln Equities Group has been busy in the industrial sector, with more than 2 million square feet of space under development. And that pipeline is growing, with the recent start of work by the East Rutherford commercial real estate owner, manager and developer on a project just across the Jersey border.

Rendering for Lincoln Equities @ Rockland County, a speculative industrial warehouse from Lincoln Equities Group. — Rendering for Lincoln Equities @ Rockland County. – JLL

LEG recently broke ground on a 220,000-square-foot speculative warehouse project in Rockland County, N.Y., marking the first new industrial property to come to the county since 2009. On March 8, JLL Northeast Industrial announced it was retained as exclusive leasing agent for Lincoln Logistics @ Rockland, located at 625 Corporate Place in Valley Cottage, N.Y.

The exclusive JLL leasing team is led by Senior Managing Director James Panczykowski, Executive Managing Director Dean Brody and Vice President Ignatius Armenia.

Just off Interstate 287 and the Mario Cuomo Bridge – offering easy access to Manhattan and Westchester County in the Empire State, along with Fairfield County in Connecticut and northern New Jersey – the property sits on 23 acres in Executive Park on Route 303 and is set to be completed in the third quarter of this year, according to JLL.

In an area where an average property is more than 45 years old, the Class A Lincoln Logistics @ Rockland will feature a state-of-the-art industrial design, superior loading, wide column spacing, energy-efficient LED lighting, 36-foot clear ceiling heights, 34 loading docks, two drive-in doors, 41 trailer stalls and parking for 123 cars.

According to a statement from LEG President Joel Bergstein, the Rockland County project represents the best opportunity for industrial in the county.

“[A]nd, working with JLL, we are already seeing interest from Fortune 500 companies, third party logistics firms and local businesses looking to expand,” he said. “Rockland County’s business-friendly climate and superior transportation access make it an ideal location for value-oriented tenants requiring access to the New York tri-state market.”

Amid persistent demand for industrial space, Panczykowski described Lincoln Logistics @ Rockland as a “new alternative for tenants.”

In a fourth quarter report, JLL found the Lower Hudson Valley is moving from a build-to-suit and owner-user market to a growing speculative construction market, with record low vacancies (3.4%).

“As the industrial markets in Northern New Jersey and New York City continue to experience record-breaking demand, Lincoln Logistics @ Rockland offers a new alternative for tenants seeking to service the region from Class A industrial space,” Panczykowski said in a statement. “This type of highly coveted, state-of-the-art space is ideal for a successful distribution hub that caters to the ever-growing demand for fast local deliveries.”

JLL said there are no Class A vacancies in the Lower Hudson Valley, putting “developers in the drivers’ seat,” with tenants on the lookout for an estimated 12 million square feet of space in the region. Despite economic headwinds, demand persists, according to the firm which cited a climb in New York’s industrial occupancy rates to 97.9%.

Back in New Jersey, LEG’s projects include the Lincoln Logistics Bayonne campus, a 152-acre development that features a 886,256-square-foot regional distribution center for UPS and a neighboring speculative project of more than 330,000 square feet. Last month, LEG and partner The Carlyle Group secured $17 million in predevelopment financing to transform a more than 15-acre industrial site in Belleville.

Select Region or Brand

Upcoming Event

Tag: JLL