No Office Tenant Rep? Don’t be Stupid!

No Office Tenant Rep? Don’t be Stupid!
Jim OsgoodMay 29, 2018
It’s time to make that big move, a larger rented office space. This is good news, because it means your business is growing, but it’s a frightening prospect, to take on that much more commitment and responsibility. You know, when you were purchasing the house that you now live, that the services of a realtor were essential to the successful conclusion of the purchasing process. Believe it or not, the same is true when you are seeking an office for rent, and for many of the same reasons and why you need an office tenant rep to help you.

As you know from your own experience with a residential home purchase, there are realtor commissions built into the sale. The same is true with commercial transactions and tenant representatives, which means that it is always worth your time to engage the services of a tenant rep; those services cost you, the renter, nothing extra. It is FREE
Like a home realtor, an office tenant rep has the experience and knowledge to successfully negotiate the varied and complicated processes involved with successfully researching, negotiating and closing on a lease for commercial office space.
An office tenant rep will be able to answer all your questions and help you understand the consequences of the choices that you will need to make during the process. In addition to the obvious questions, such as location, cost and length of lease, there are a number of other factors which need to be considered when renting office space. A good office tenant rep will help you recognize those issues and make the best decisions for your company’s future success.
As with any negotiation, experience and expertise are key to a successful outcome. Tenant reps negotiate on behalf of hundreds of small business owners such as yourself, meaning that they understand all the critical issues and know how to negotiate on your behalf for the best possible outcome.
What does an Office Tenant Rep do?

Let’s hear it directly from them. The following is from our OfficeFinder LinkedIn group discussion on the most important activities Tenant Reps provide their clients in addition to just finding space:

“I believe the top Time & Money saving services that we provide to clients all revolve around the Transfer of Specialized Knowledge to the client, so that they may make the most informed decision. Up to date market information, understanding the players involved, defining and executing the process required for a successful outcome and most importantly, proactive advocacy, each individually represents significant savings for a client.”

“Avoiding mistakes is very important aspect of why tenant representation is so important for office tenants. We do this every day, just like the landlords and listing agents. Tenants only search and negotiate for office space every few years. Landlords and listing agents love to see tenants coming unrepresented. It makes their business much more profitable than when a tenant is represented by experienced and knowledgeable tenant reps…like the ones we have at OfficeFinder!”

“We provide lease digests and early reminders of important dates i.e. rights and renewal options. We also place these dates on an earlier call up internally so that we remind the tenant that they need to be addressing their real estate needs, even if their intent is to renew. We also assist with renewals. In today’s market the lease signed five years ago is most likely far above today’s market rates.

A 10% discount off of today’s asking rate may sound good however, the market may be giving a 25% discount. Only through the use of their own broker can a tenant gain an accurate opinion of today’s market.

Any business who leases office, retail or industrial space expiring within the next 6 to 18 months should be talking with a broker to represent their interests. This not only pertains to renewals subject to negotiation but also pre-stated rent renewals. This is also a good time to negotiate terms and conditions not included in the original lease.

We have a good system in place and when started at the right time in the renewal process, we have been successful in leveraging our position, procuring rent reductions and changes in other terms beneficial to the tenant. We’ve also been able to facilitate early renewals where the tenant benefits from the negotiated terms and conditions sooner than later.”

“There is absolutley no question as a tenant representative we can all save our clients real money in the transaction and “time” money by not only doing things they would have to do but also the fact we know what to look for in the first place.

We might want to consider the money we can save clients by handling non-transactional issues after the lease is signed. Two examples: 1) client is a 501C-3 teaching museum- eligible for property tax relief. Worked with county and LL-client received over $100K in refunds over 12 years. 2)Client located in Enterprise Zone. Another client/accounting firm specializes in that area of tax. Put them together…anticipate over $500K in saving over next 6 years. There’s a lot more we can do than just focus on the transaction. Just my $.02

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Quest Building new flagship in Clifton

Construction is underway at Quest Diagnostics’ new flagship laboratory in Clifton, a planned 250,000-square-foot facility that is slated to become the largest in its vast portfolio.

Company leaders joined public officials and other stakeholders on Wednesday to mark the official groundbreaking for the facility, which will become part of the mixed-use ON3 campus along Route 3. Slated to open in early 2021, the lab will house more than 1,100 employees and provide enhanced diagnostic information services to more than 40 million people in the Mid-Atlantic.

The complex will occupy about 12 acres within the 116-acre campus owned by Prism Capital Partners.

A rendering of Quest Diagnostics’ new 250,000-square-foot lab facility at ON3 in Clifton — Courtesy: Quest Diagnostics
“Our new flagship laboratory will enable us to empower better health through a comprehensive testing menu, faster turnaround, and additional capacity to serve more patients and clients,” said Steve Rusckowski, Quest’s chairman, CEO and president. “Rooted in innovation, this new lab will also provide our employees with an inspiring workplace.

“This is a major commitment to our presence in New Jersey where we are headquartered, and it is good news for the health care providers and patients we serve.”

The diagnostic services giant, which is based in nearby Secaucus, will be among several companies and institutions that are repopulating the former longtime home of Hoffmann-La Roche, which Prism is now redeveloping and has rebranded as ON3. In fall 2017, the state Economic Development Authority approved a 10-year, $55.2 million tax credit award for Quest aimed at supporting what was an estimated capital investment of $230 million.

In approving the project last year, the EDA said the new building in Clifton would house more than 750 positions that are currently at a Quest-owned building in Teterboro, but were at risk of being moved out of the state. The proposal at the time also called for relocating 269 employees currently in Pennsylvania and Maryland, along with the creation of another 115 new jobs.

Steve Rusckowski, Quest’s chairman, CEO and president, speaks during the groundbreaking for the company’s new lab facility in Clifton
At ON3, which spans Clifton and Nutley, Quest will join the Hackensack-Meridian School of Medicine at Seton Hall University and the biotech company Modern Meadow, which already operate at the campus. Prism has also secured commitments from Ralph Lauren Corp., which will occupy 250,000 square feet at an existing building that will be renovated.

Quest also announced Wednesday that it would make a $15,000 contribution to the Boys and Girls Club of New Jersey.

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Mack Cali sells 5% stake

Madison International Realty Acquires 5% Stake In Mack-Cali Realty Corp.
NEWS PROVIDED BY

Madison International Realty
Feb 07, 2019, 09:28 ET

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NEW YORK, Feb. 7, 2019 /PRNewswire/ — Madison International Realty, a leading real estate private equity firm, announced that it has acquired a 5.0% ownership stake in Mack-Cali Realty Corporation (CLI), holding approximately 4.5 million shares.

“We acquired the shares at what we believe to be a discount to net asset value (NAV), and we believe Mack-Cali holds material upside potential. We see a significant discrepancy between how the public market is pricing the company’s shares and our private valuation,” said Ronald Dickerman, President of Madison International Realty. “The company has articulated and is executing a transition to become a focused play on prime office and multi-family residential properties on the New Jersey waterfront and is committed to closing the NAV discount in its shares.”

“The company has divested, and has stated that it will continue to divest, legacy suburban and flex assets to focus on office and multi-family directly across the Hudson River from Manhattan, Brookfield Place and Hudson Yards, and offers its prime space at a significantly discounted rent,” Dickerman said.

Based in Jersey City, Mack-Cali is an owner, manager and developer of five million square feet of premier office space and 4,400 multi-family units on the New Jersey waterfront, with entitlements to build 7,000 additional units. The company is leading development, leasing and activation initiatives for Harborside, a master-planned destination composed of class A office, luxury apartments, retail, restaurants, and public spaces.

Madison International Realty specializes in acquiring private ownership stakes, joint venture positions, and listed property shares in prime properties and portfolios in major markets in the US, UK and Western Europe. Madison invests selectively in listed real estate companies owning high-quality portfolios trading at discounts to net asset value. Other Madison REIT investments have included GGP Inc., TIER REIT, Monogram Residential Trust, Inc., Alexander’s Inc. and Songbird Estates.

“Mack-Cali fits well with our differentiated strategy of effectuating investments in listed property companies owning prime portfolios that we believe are trading at outsized discounts to NAV,” Dickerman said.

About Madison International Realty

Madison International Realty (www.madisonint.com) is a leading liquidity provider to real estate investors worldwide. Madison provides equity capital for real estate owners and investors seeking to monetize embedded equity, to replace capital partners seeking an exit and to recapitalize balance sheets. The firm provides equity for recapitalizations, partner buyouts and capital infusions; and acquires joint venture, limited partner and co-investment interests as principals. Madison invests only in secondary transactions and focuses solely on existing properties and portfolios in the U.S., U.K., and Western Europe. Madison has offices in New York, London and Frankfurt, Germany, where the firm operates under the name of Madison Real Estate Beteiligungsgesellschaft mbH.

SOURCE Madison International Realty

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Kearny 100ksf Deal

KEARNY, NJ—Global logistics provider Mainfreight has signed a long-term, 110,147-square-foot industrial lease at RTC Properties’ 50 Cable Drive in Kearny, NJ.
The transaction was arranged by a CBRE team led by executive vice president William Waxman. Mainfreight provides managed warehousing, as well as international and domestic freight forwarding services.

“Mainfreight’s decision to take industrial space at 50 Cable Drive is a testament to northern New Jersey’s extensive transportation network, population density and educated workforce,” says Waxman.
The property features on-site management, 24/7 security and direct access to US Routes 1 & 9. It is also near the New Jersey Turnpike, Port Newark, Newark International Airport and New York City.

Mainfreight was founded in 1978 in Auckland, New Zealand, and soon grew into the country’s most extensive freight network. By 1999, Mainfreight became a fully global company with the acquisition of businesses in both Asia and the United States.

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U.S. Industrial Vacancy Rate Hits Record Low in 2017

U.S. Industrial Vacancy Rate Hits Record Low in 2017 as Technology, Consumer Tastes Change
Posted on April 24, 2018 by Camren Skelton in Features, Industrial

Pictured, Silicon Valley Industrial Center in San Jose. According to the report, the California metro is a prime market for investment, in part because of demand from the cloud computing and legalized cannabis industries. (Photo courtesy of LoopNet)

IRVINE, CALIF. — Industrial vacancies hit an all-time low in 2017, as changes in technology and consumer habits drove demand for distribution and warehousing space, according to Ten-X Commercial’s U.S. Industrial Market Outlook.

The biannual report indicated that the national vacancy rate declined to 7.3 percent in 2017, its lowest level since the Irvine-based online real estate transaction platform began tracking the sector in 1999.

In addition, the report showed that 2017 was the sixth straight year during which rent growth accelerated, and the first year on record in which the industrial sector’s rent growth outpaced that of the other three major commercial real estate sectors (office, retail and multifamily).

“Right now, industrial is the cream of the commercial real estate crop, and the trends driving the sector — including e-retail, cloud computing and legalized cannabis — show no signs of abating,” says Peter Muoio, chief economist at Ten-X.

The California metros of Los Angeles, San Jose, Oakland, San Francisco and San Diego are Ten-X Commercial’s top five markets for industrial investment, in part because they are at the epicenter of the cloud computing and legalized cannabis industries.

“These new growth drivers are joined by the more traditional ones of recovering industrial production, capacity utilization, capital goods orders and trade, which have fueled vacancies and the broader health of the industrial sector to previously unseen levels,” says Muoio.

Ten-X determined that Dallas, San Antonio, Houston, Cleveland and Baltimore are the five markets where investors should consider selling industrial properties. These markets struggled with either heavy supply pipelines, waning demand or a lack of fundamental growth drivers, according to the report.

Looking ahead, Ten-X forecasts industrial demand will remain healthy throughout 2018, with more than 10 million square feet of projected net absorption. By year-end, the U.S. vacancy rate is projected to tighten an additional 30 basis points to an even 7 percent.

Despite an overall positive outlook, trade policy uncertainty is the single largest threat to the industrial sector. According to the report, any aggressive implementation of import tariffs on goods could hamper industrial production and demand, while also fueling inflation.

Ten-X Commercial is a leading online, end-to-end transaction platform for commercial real estate. Since 2009, the company (formerly Auction.com) has facilitated the sale of more than $18 billion in commercial real estate assets.

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Mahwah New Industrial Building Finds a tenant

Sitex Group’s 271 KSF Facility in NJ Finds Tenant
The newly completed facility is close to major thoroughfares, most notably Route 17 and interstates 87 and 287. NAI James E. Hanson arranged the long-term lease with a tools manufacturer.
by Tudor Scolca | Apr 24, 2018
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Rendering of One Sharp Plaza
Snow Joe DC, a lawn and garden tools manufacturer, has signed a long-term lease at Sitex Group’s 271,176-square-foot spec warehouse property in Mahwah, N.J. NAI James E. Hanson marketed the recently completed One Sharp Plaza on behalf of the landlord.
The Bergen County industrial facility is located at 100 Performance Drive, within Stateline Business Park, sitting on approximately 21 acres. Petillo Inc. was the general contractor for the project. According to Yardi Matrix data, developer Sitex Group received a $22 million construction loan from Santander Bank for One Sharp Plaza.
The facility features a 36-foot clear ceiling height, 54- by 60-foot column spacing, 36 dock doors, ESFR sprinklers, two drive-ins and parking space for 25 trailers and 184 cars. The warehouse also comes with exclusive signage rights in the form of a 10- by 48-foot pylon with visibility from Interstate 287.
Major transportation hub
One Sharp Plaza is within minutes of major thoroughfares, such as Route 17 and interstates 87 and 287. The distribution hub is less than an hour’s drive from New York City. Other points of interest within reach include the George Washington and Tappan Zee bridges, the Newark and Stewart airports and Port of Newark, all under 40 miles away. Interstate 287 has an annual average daily traffic count of more than 115,000 vehicles.
“With record property prices throughout much of Bergen County and a highly limited supply of state-of-the-art buildings, submarkets like Mahwah present industrial users with an ideal mix of location, flexibility and access to a highly skilled workforce that make this area a perfect location for companies like Snow Joe,” said NAI Hanson Senior Vice President Kenneth Lundberg, in a prepared statement.
Lundberg and Associate Patrick Lennon represented Sitex in the lease negotiations, while Chaus Realty’s Brian Scheuer worked on behalf of the tenant.

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Amazon to NEWARK?

NEWARK, NJ — Amazon representatives met with local community leaders in Newark on Tuesday to “fine-tune” the city’s pitch to land the retail giant’s new headquarters, dubbed HQ2.

Aisha Glover, president and CEO of the Newark Community Economic Development Corporation, told Patch that New Jersey and Newark officials met with the Amazon HQ2 selection team to “fine-tune elements included in our pitch” and give the company a first-hand look at the city.

“Suffice it to say, we hope the same compelling case that earned Newark recognition as one of 20 candidate cities from more than 200-plus proposals will help bring this home to New Jersey at the end of the day,” Glover said.

She declined to comment further on the views and reactions of the Amazon team in order to “respect the integrity of their selection process.”

Sources told NJ Advance Media that attendees at the meeting included Gov. Phil Murphy, Mayor Ras Baraka and local businessman/philanthropist Ray Chambers.

See related article: Newark A Finalist For Amazon HQ2, Company Announces
See related article: SNL Lampoons Newark’s Odds Of Landing Amazon HQ (Video)
Amazon has stated that the new facility will be a “full equal to its current campus in Seattle.” The company said that it expects to invest over $5 billion in construction into the new headquarters and that it may bring as many as 50,000 “high-paying jobs” to the area.

The project could generate an estimated $10 billion in direct and indirect economic activity, according to a company news release.

Amazon listed some criteria for the new location. It needs to be in a metropolitan area, in a stable and business-friendly environment, close to world-class universities and to transportation infrastructure, and with optimal connectivity to the internet.

The race to land the new facility has inspired proposals from more than 238 communities. According to Amazon, the other locations that are among the final 20 candidates are: Austin, TX, Chicago, IL, Columbus, OH, Dallas, TX, Denver, CO, Indianapolis, IN, Los Angeles, CA, Montgomery County, MD, Nashville, TN, New York City, NY, Northern Virginia, VA, Philadelphia, PA, Pittsburgh, PA, Raleigh, NC, Toronto, ON, and Washington D.C.

See related article: Amazon HQ2: Shortlist Of Candidates Announced
The proposal to bring Amazon’s new headquarters to Newark has lined up supporters on both sides of the political spectrum, including former governor and Republican Chris Christie and Democrat U.S. Senator Cory Booker.

“This deal would amount to one of the most successful endeavors in the history of New Jersey and Amazon,” Christie said last year. “For New Jerseyans, HQ2 means 50,000 new jobs and the creation of a larger consumer base and direct opportunities for local small businesses and vendors to grow and thrive. Adding tens of thousands of dedicated and community-oriented Amazon employees and their families will also further enrich our area neighborhoods and schools.”

See related article: ‘Bring Amazon HQ To Newark’: Christie, Democrats Agree
However, some critics have questioned the plan to offer the corporation a tax break through the state Economic Development Authority (NJEA) that could reach $5 billion over 10 years. Newark city officials are also offering the company a municipal property tax abatement that could be worth $1 billion, as well as a city wage tax waiver worth an estimated $1 billion over 20 years.

The headquarters project would be required to create at least 30,000 new full-time jobs and represent a capital investment of at least $3 billion to earn the tax credits. The project would also be required to yield a net benefit to the state of at least 115 percent of the tax credits the company receives, according to a release from the state Senate.

State Assemblyman John Wisniewksi, a Democrat from District 19, said that the Amazon “bidding war” will only put New Jersey on a downward spiral.

“While the proposal would provide good jobs in the region, it also robs the state of the very revenue needed to address the consequences of such growth and development,” Wisniewksi said.

“If we add 50,000 employees to downtown Newark, where’s the money to maintain and expand the system?” Wisniewksi questioned. “Who would pay for the additional wear and tear on roads or the additional police and firefighters needed to ensure public safety?”

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Waste Management Issue in Hillsdale

Is waste management station an issue?
Garbage is shown at the Waste Management Inc. transfer
Garbage is shown at the Waste Management Inc. transfer station in Hillsdale, Thursday, March 1, 2018. (Photo: Kevin R. Wexler/NorthJersey.com)

One business that doesn’t fall into the vision some officials have for the industrial zone is Waste Management, Inc. — a 5-acre waste transfer station on Brookside Place.

“Who’s going to want to redevelop this area with a waste transfer station in the middle of it?” Mayor John Ruocco said.

The company recently resumed operations after halting for several years in 2014 due to a partially collapsed roof.

Borough officials have challenged the state Department of Environmental Protection’s decision to reissue Waste Management’s Solid Waste Facility Permit. The borough claims the Hillsdale location is inappropriately placed, bringing loud noises, foul smells and heavy truck traffic through the center of the borough’s downtown and near residential areas.

A man works on a truck, at the Waste Management Inc.
A man works on a truck, at the Waste Management Inc. transfer station, in Hillsdale, Thursday, March 1, 2018. (Photo: Kevin R. Wexler/NorthJersey.com)

But John Hambrose, communications manager for Waste Management, said the station is “tucked into a commercial/industrial district that is hardly in the center of Hillsdale.”

The Bergen County Utilities Authority is currently reviewing the county’s solid waste management plan and borough officials are hopeful it will deem the Hillsdale site redundant. After all, they say, the station was closed for several years and the company was able to get along without it.

But Hambrose said the location provides “essential and convenient” services to the county.

Residents near the industrial zone say they would rather see “anything except garbage” in Waste Management’s place.

The Waste Management Inc. transfer station, in Hillsdale,
The Waste Management Inc. transfer station, in Hillsdale, is located near the intersection of Patterson St. and Piermont Ave. Thursday, March 1, 2018 (Photo: Kevin R. Wexler/NorthJersey.com)

The bad smell
Bill and Sue Monahan have lived on Piermont Avenue, just across the railroad tracks from Waste Management, for more than 40 years. When they moved in, they say the site, which was operated by another company at the time, was used for truck parking, then cardboard collection.

But since it started handling garbage, quality of life has severely declined, the couple says.

“We’re impacted by the noise and the smell, especially the smell – in the summer it’s unbearable,” Bill Monahan said. “Plus you have 18-wheelers going through out town, which is not the safest thing.”

Bill Monahan, has lived on Piermont Ave. in Hillsdale
Bill Monahan, has lived on Piermont Ave. in Hillsdale for more than 40 years, and is not happy with Waste Management Inc. and the transfer station located on his street. Thursday, March 1, 2018 (Photo: Kevin R. Wexler/NorthJersey.com)

Michael Wowkun, also a Piermont Avenue resident, said the smell is so intrusive, he can’t have people over for a barbecue, or keep his windows open. A fan in the facility hums from daybreak until evening, he said, driving him “nuts.”

“It’s a horrible quality of life living there,” he said.

Councilman Zoltan Horvath, who also lives nearby Waste Management, agreed, calling the quality of life in the area “abominable.”

“We pay high taxes and we don’t enjoy the peace and quiet that everyone else in town does,” he said. “This station should not be here, it should be on a major highway.”

Redevelopment area qualifications
Under the Local Redevelopment and Housing Law, a property must meet certain qualifications to be deemed an “area in need of redevelopment.”

These include:

Buildings that are substandard, unsafe, unsanitary, dilapidated, becoming obsolete, lack light, air, or space and create unwholesome living or working conditions.
Discontinued use or abandoned buildings previously used for commercial, manufacturing, or industrial purposes.
Areas with buildings or improvements detrimental to the safety, health, morals, or welfare of the community because of: dilapidation, obsolescence, overcrowding, faulty arrangement or design, lack of ventilation, light and sanitary facilities, excessive land coverage, deleterious land use or obsolete layout.
A growing or total lack of proper use of areas caused by property ownership issues that impede land assemblage or discourage the undertaking of improvements that result in a stagnant and unproductive condition of land that’s potentially useful and valuable for contributing to and serving the public health, safety and welfare of the surrounding area or the community in general and is presumed to be having a negative social, economic or other detrimental impact to the same.
Areas greater than five acres whereon buildings or improvements have been destroyed by fire or natural disaster.
The designation of the delineated area is consistent with smart growth planning principles adopted pursuant to law or regulation.

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Kushner new buy Hackensack

HACKENSACK, NJ—Kushner Companies has acquired Prospect Place, a 360-unit, two-building multi-housing property in Hackensack, NJ. Industry observers familiar with the property say the purchase price was around $100 million.

Holliday Fenoglio Fowler marketed the property exclusively on behalf of the property owner, who was not identified. However, Real Capital Analytics, a proprietary transaction database, indicates that the property’s most recent owner was a joint venture of Goldman Sachs, Greystar, and Ivanhoe Cambridge, which acquired the asset in January 2013 for nearly $99.2 million as part of a 27-property Equity Residential Apartment Portfolio. HFF says Kushner purchased the property free and clear of existing debt.

The HFF investment advisory team representing the seller included senior managing director José Cruz, managing director Kevin O’Hearn, senior directors Michael Oliver and Stephen Simonelli and director Marc Duval.

“Prospect Place represents the right mix of infill Northern New Jersey multifamily product with renovation upside,” Cruz says. “Its Bergen County location with direct access to New York City attracts a wide array of tenants.”

Prospect Place, 300 and 310 Prospect Avenue, offers convenient access to the New York City metropolitan area via the nearby NJ Transit Anderson Street station and Interstates 80 and 95. The two-phase property consists of an 18-story high-rise comprising 157 units averaging 1,331 square feet and a four-story mid-rise building comprising 203 units averaging 1,077 square feet. Community amenities include an outdoor lap pool with sundeck, landscaped courtyard, grilling stations, fitness centers, billiards room, resident lounges, concierge service and 653 covered parking spaces. Prospect Place is 96-percent occupied.

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South Jersey Sold Warehouses

PENNSAUKEN, N.J. — Colliers International has negotiated the sale of three industrial buildings in Southern New Jersey for a combined $7.5 million. The three properties located in Pennsauken include: 9240 Commerce Highway, a 67,600-square-foot warehouse acquired by a private investor for $3.2 million; 6995 Airport Highway Lane, a 60,800-square-foot manufacturing facility purchased by Heat Makers Sense for $2.7 million; and 9265 Commerce Highway, a 33,500-square-foot warehouse acquired by Draco Broadcast for $1.6 million. The seller was the Bloom Organization. Ian Richman and Marc Isdaner of Colliers arranged the sale of the three properties.

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