Asking rates for the building were in the mid to low 30s per square foot, Sachs tells GlobeSt.com. BAE renewed its lease three years early for a five-year term, securing for itself a very favorable rate, according to Sachs. The lease for the existing space will begin November 2011; the lease for the expanded space starts later this year.
BAE's expansion represents one of the few bright spots for the CRE industry--data centers. New Jersey's office market exceeded expectations in Q4 in part due to such investments, to cite just one example. "Most data centers require less than 10,000 square feet of space, and most data center capacity is utilized by small users," Bowman writes. Such space requirements, as BAE illustrated, tend to be small--around 10,000 square feet. However requirements are growing at a faster velocity due to Moore's Law--the principle that data center bandwidth doubles every 18 months, according to a white paper prepared by Ronald H. Bowman, EVP of Tishman Technologies Corp., a Tishman Corp. division that specializes in data centers.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
