MORRISTOWN, N.J. — Accounting firm Deloitte has preleased a 110,000-square-foot office space at M Station, an office redevelopment project in Morristown. SJP Properties and Scotto Properties plan to convert the Midtown Shopping Center strip in downtown Morristown into two office buildings totaling 400,000 square feet. Deloitte’s lease is contingent on SJP and Scotto receiving full municipal approvals for the project. The company plans to relocate from its previous office in Parsippany and will occupy floors two through six of M Station East. The building will also include 10,000 square feet of ground floor retail. M Station West is planned to be seven stories and approximately 253,000 square feet, which will include approximately 230,000 square feet of office space and 23,000 square feet of retail space. David Stefancic, Lexis Livengood, Ben Brenner and Josh Cohen of Cushman & Wakefield represented Deloitte in the lease negotiations. Robert Donnelly, Robert Donnelly Jr. and Brian Decillis of Cushman & Wakefield represented SJP and Scotto. Gensler designed the project.

Glen Ridge and Montclair, N.J. – A ribbon cutting ceremony was held on Thursday for a three-story, 45,735-square-foot state-of-the-art medical office building at the former School of Nursing site across from Hackensack Meridian Health Mountainside Medical Center on the border of Glen Ridge and Montclair, N.J. Developed by The Hampshire Companies with Circle Squared Alternative Investments (Circle Squared) serving as the project advisor, the modern medical office building is anchored by Hackensack Meridian Health. The project enhances the scope and quality of comprehensive healthcare services and brings additional economic and quality-of-life benefits to the communities Mountainside Medical Center serves.

Jon F. Hanson, James E. Hanson II, and John Durso from The Hampshire Companies and Jeff Sica of Circle Squared Alternative Investments were joined by top local and hospital officials to celebrate the milestone event including John Fromhold, FACHE, CEO of Mountainside Medical Center, Robert C. Garrett, CEO of Hackensack Meridian Health, , David Vandewater, CEO of Ardent Health Services, Frank Fekete, Chairman of the Hackensack Meridian Health Mountainside Medical Center Joint Venture Board, Tim O’Brien, COO of Mountainside Medical Center, and Glen Ridge Mayor Stuart K. Patrick.

The state-of-the-art facility will provide increased access to quality care for the community providing a home for a variety of Hackensack Meridian Health’s specialty groups at Mountainside Medical Center including obstetrics and gynecology, internal medicine, family medicine, urology, general surgery, cardiology, orthopedics, ENT, pulmonary, GI, endocrinology, pediatrics and pediatric subspecialists from the John M. Sanzari Children’s Hospital at Hackensack University Medical Center.

Tenant Representation: No Conflicts of Interest
Whether you’re relocating your business, expanding to another location or finding a home for your start-up, the commercial leasing process can be lengthy and difficult. Having tenant representation can help to simplify the process, but it’s important that you choose the person who will be by your side throughout the process carefully. Many companies make the mistake of thinking that all tenant representation is the same, but that’s simply not the case. These key points will help you understand the differences between tenant representation options.

Tenant Reps and Brokers are Not the Same
Tenant representatives and brokers both assist with the commercial leasing process, but the terms are not interchangeable. Both types of professionals can help you find office, retail, warehousing or industrial space and act as an assistant during the negotiation process, but who these individuals represent differs.

Reps Work for You
Brokers work for both you and the landlord. The key difference between tenant reps and brokers is for whom they work. A tenant rep serves as the advocate for the tenant only. A broker works for both the landlord and the tenant.

Brokers May Tell You That You’ll Save Money if You Skip Using a Rep
Often, brokers who are eager to secure the business of a company will say that using a tenant representative for tenant representation will make the process more costly. This is because the landlord pays the fees of the tenant rep. While at face value this may be true, brokers also are paid a fee. Even if the broker’s fees are lower than the rep’s, tenants may still not see the big savings they are promised.

Brokers Often Have a Conflict of Interest
A broker’s job is to fill the landlord’s units, buildings or offices with tenants. As a result, he or she may recommend properties that are not completely in line with tenants’ needs or that are not priced fairly in respect to current market trends.

Choosing a Rep Frees You of Conflict of Interest Concerns
With a tenant representative, you can feel confident that your interests are being looked out for. Because a tenant rep works solely for you, he or she will be most concerned with finding you the right space for your needs and helping you negotiate the fairest lease possible. That’s why even if a rep’s fees are higher than a broker’s and the landlord folds some of those fees into your rent, you still have the potential to save money when you opt for a rep to serve as your tenant representation.

Doing Background and Reputation Checks is Key
While tenant reps are the smart choice for tenant representation, keep in mind that they’re not all the same. Before you enlist the help of a particular rep, do some Internet research to get a feel for his or her reputation in the area.

AND his or his service and expertise will be FREE to you.

3 Technology Trends That Will Shape Commercial Real Estate In 2019
By Don Catalano

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2018 has seen a lot of transformative movement in commercial real estate. The year witnessed a competitive home buying market, and many observers expect a correction in the coming year. In a year that has witnessed a steady growth in commercial real estate low interests, it is important to examine the technology changes that may disrupt this market.

There is a lot of rave surrounding Augmented Reality (AR), Virtual Reality (VR), Artificial Intelligence (AI), Blockchain, Autonomous vehicles and other emerging technologies which we covered in the top 6 technology trends impacting commercial real estate in 2018. The past discussion of these emerging technologies has been more of an awareness, but there is a move towards action as builders are now becoming more creative through the use of technology.

As these emerging technologies get deep into commercial real estate, they are producing opportunities, as well as challenges. In this article, we are going to explore these technology trends:

1. Proptech
Property technology (proptech) is already in the commercial real estate mainstream. According to CB Insights, it is expected to bring in a new $3.4 billion USD in 2018 across 454 equity deals. Proptech covers everything from investment platforms and digital brokerages to new lending services and real estate apps. As demographics shift and tenant and customers behaviors evolve, this trend will only intensify.

With the provision of flexible leasing options with features like networking opportunities, events, and other business services, proptech sees a major impact from real-estate-as-a-service and collaboration spaces.

2. Increased Rise of Artificial Intelligence
Artificial intelligence has been garnering hype for years now. We talked about it in the 2018 article on technology trends in real estate. Tech startups have started integrating AI into their market analyses, but the most relevant use of AI and other emerging technologies will be in building management, design, and organization. For example, companies like The Edge, which are into smart buildings have already discovered a big potential in analyzing the behavior of users in their shared office space. The use of the data in redesigning their workspace layout, refining their offerings and creating a virtuous feedback loop.

For commercial real estate, ULI reports that artificial intelligence offers building safety and efficiency, as well as property access and security.

3. Cyber Risk Management
In the commercial real estate, risk management seems to focus on tenant risk, interest rate, and to a degree, portfolio risk. Technology has expanded the scope of risk with evolving business complexities. Hence, there is an increasing concern over information security and data privacy; and, many commercial real estate companies are struggling to balance efforts on investments and handling of cyber attacks.

As a result, in 2019, there will be an increased demand for cyber risk management. Commercial real estate owners may need to assess their employees for exposure to cyber risks, and also train them in understanding the potential threats and implications of cyber attacks and crimes.

2019 will soon be upon us. Is your company positioned properly to benefit from the top three technology trends that will shape real estate in 2019?

What’s the difference between a listing agent and tenant rep agent?

What’s the difference between a listing agent and tenant rep agent?
This post originally appeared on tBL member Michael Kushner’s blog Omni Realty Group and is republished with permission. Find out how to syndicate your content with theBrokerList.

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The use of the term real estate agent casts a broad umbrella under which people tend to lump all real estate professionals into the same category. The truth is that there is a big difference between the role of a listing agent and a tenant/buyer agent. While both might be referred to as simply a “real estate agent,” it’s important to understand when and how you would use each when it comes to buying or selling real estate.

Listing Agent – A listing agent might also be referred to as a seller’s agent. This is the person who represents the seller or landlord in a deal. His or her job is to list and market the property to attract potential buyers, then negotiate an acceptable deal on behalf of the seller.

Tenant/Buyer Agent – On the other side of the deal you have the tenant/buyer agent. This is the person who represents the tenant or buyer looking to lease or purchase property. His or her job is to find and bring a tenant/buyer to properties which meet their criteria, then represent them in a deal to ensure terms and pricing is fair to the buyer.

How is a listing agent compensated?

Most commonly, a listing agent signs an exclusive right-to-sell/lease listing with the seller/landlord, meaning only the listing agent’s brokerage is entitled to an agreed upon commission upon the sale or lease of the property. The brokerage then typically shares the commission with the agent. Exclusive listings are bilateral agreements between a broker and a seller/landlord. It’s important to know that a listing actually belong to the broker or brokerage, not the listing agent unless he is also owner of the brokerage. However, it is important to make the distinction between a tenant/buyer agent and a subagent of the seller/landlord. If the tenant/buyer does not have a formal written agreement with the tenant/buyer agent then the agent who is showing the property and providing information to the tenant/buyer is considered a subagent of the listing agent and is not representing the interests of the tenant/buyer.

How is a tenant/buyer agent compensated?

Generally, the listing agent cooperates with the tenant/buyer agent and shares a portion of the earned commission in exchange for bringing a tenant/buyer to the table, if that tenant/buyer then submits an offer that the seller accepts. This is referred to as a “co-op” commission. It’s important to note that a tenant/buyer agent is at no cost to the tenant/buyer.

Do I really need to work with an agent?

Legally, no. You are not required to work with an agent and can opt to list your property as a For Sale By Owner (FSBO). But there are benefits to working with a listing agent. Foremost, it becomes their responsibility to market and sell your property in a timely fashion and for an agreeable price. They will schedule showings and handle all of this for you. Many sellers benefit from working with a listing agent because their property may sell faster and at a higher price point than if they decided to go it alone. Also, many people value having a professional to take these time-consuming tasks off their hands.

If you are on the other side of the deal as a tenant/buyer, again you do not legally need to work with a tenant/buyer agent in order to buy or lease a property. However, similarly to the points regarding working with a listing agent, a buyer may also experience benefits when working with a tenant/buyer agent. Foremost, you will have their knowledge and expertise to guide you through the buying/leasing process, and someone who will represent your best interests. A tenant/buyer agent can also make your property search less time consuming by showing you only properties that they know fit your criteria. Think of them as your tenant/buyer “concierge.”

Can the listing agent also be the selling agent?

Simply stated, no. A listing agent should not be the selling agent within the same deal. Why? Because there is a major conflict of interest in doing so. Think of it like having the same lawyer represent both the defense and the prosecution in a case. Neither side will receive fully unbiased, honest representation, and the counsel walks away with twice the compensation. In fact, states such as California have gone as far as making such “dual agency” practices illegal.

Too often, a tenant/buyer begins looking at property without hiring a selling agent (aka tenant/buyer agent) to exclusively represent them. Usually they do not realize that a selling agent is not at the cost of the tenant/buyer, since the tenant/buyer agent will normally co-broke a commission with the listing agent. A tenant/buyer agent is compensated by splitting the commission with the listing agent. So, the client gets representation at no cost. The commission arrangement between the owner and listing agent will be paid whether or not the tenant/buyer has representation.

Without representation, tenants or buyers often find themselves needing the expertise, advocacy and unbiased advice of a listing agent. This can result in a number of troubling issues and frustrations for the tenant/buyer. These include losing the upper hand in negotiations, being subject to unfair pricing and unsatisfactory terms and too late realizing that things could have gone far better if they had a professional dedicated solely to representing their best interests.

When it comes to understanding the differences between a listing agent and a selling agent (aka tenant/buyer agent), the most important take away is that whatever side of the deal you’re on, you want to be sure you have your own representation to advocate for your best interests and negotiate a favorable deal.

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

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.

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

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.

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.