Mack-Cali Leases Over 100,000 SF in NJ

Mitchell E. Hersh, president and CEO of the locally based REIT, told GlobeSt.com that the leasing market is tough, but deals are nevertheless getting done. "There is no question that transactions are taking longer," he says, adding that there are several trends currently taking place in the marketplace. "Tenants would generally prefer to stay in place, especially if their needs for expansion--or frankly contraction--can be accommodated. With our campus-type developments, in many instances, we are able to provide for that flexibility. Flexibility is the key."

"There is a general flight to quality that simultaneously is going on," he continued. "That has enabled us to attract several new tenants, both to Parsippany and Fort Lee, where as a result of some consolidation within those companies as well as maturing leases elsewhere, enabled them to move up to higher quality assets. I'm not minimizing the lack of clarity in the market, and the fact that the velocity is off. But at the end of the day, corporate America is still doing business."

The latest Mack-Cali leases include:

• The Daily Record--a newspaper in Morris County--inked a new 17,373-square-foot lease at Six Century Dr. in Parsippany for a term of five years and two months. The 100,036-square foot office property, located at Mack-Cali Business Campus, is now 95%-occupied. Meredith LaPier, Suzanne Macnow and Thomas Mallaney of CB Richard Ellis advised the tenant, and Mack-Cali was represented in-house by Diane Chayes, vice president of leasing.
• Miami International Holdings Inc., an investment services firm, took 13,803 square feet at One Bridge Plaza in Fort Lee for a seven-year term. The 200,000-square-foot, class A office property is 82%-leased. Roger Steinhardt of King Realty Group LLC spoke for Miami International, while Mack-Cali's in-house rep was leasing associate Richard Eyre.
• Beard Miller Company LLP, an accounting, tax, and business consulting firm, signed a new 10,880-square-foot lease for five years and seven months at 100 Walnut Ave. in Clark. The 182,555-square-foot class A office property is 97%-leased. Gary J. Lowe of Bollerman Real Estate Services represented the tenant, and Mack-Cali was represented by Casiano.
• Rockwood Specialties Inc., a specialty chemicals and advanced performance materials company, signed a 19,753-square-foot lease at 100 Overlook Center in Princeton. The transaction consisted of a 16,917-square-foot renewal and a 2,836-square-foot expansion, co-terminating in February 2013. The 149,600-square-foot, class A office building is now fully tenanted. Peter Hamburger and Harlan Hollander of Cushman & Wakefield represented the tenant. Mack-Cali was repped in-house by Toni Casiano, senior director of leasing, and Erin Moran, director of leasing.
• Paragon Computer Professionals, a provider of management consulting and information technology solutions, sealed three renewals at 25 Commerce Dr. at Cranford Business Campus in Cranford. The leases, totaling 22,415 square feet, expire May 2012. The property is a 67,749-square-foot office building that is 89%-occupied.
• Engineering, information technology and logistics service provider Blackhawk Management Corp. has renewed its 11,229-square-foot digs at 1324 Wyckoff Rd. in Wall Township for three years and four months. The 21,168-square-foot office/flex property is 100%-leased. Hugh Magee of Magee Realty Consultants Co. negotiated for the tenant. Mack-Cali was represented by Erin Moran.
• Yorkville Advisors LLC, a private investment management firm, signed a five-year renewal of its 14,419-square-foot space at 101 Hudson St. in Jersey City. The 42-story, 1.25-million square-foot, class A office tower is now fully leased. Mack-Cali was represented in-house by Thomas Savoca, senior director of leasing.

Hersh declined to disclose the monetary terms of the leases. "The market is challenging and given market vacancies, it's hard to put positive pressure on rents at this juncture," he stated. "But the deals are fair. In some cases, the tenants are co-investing in their own spaces, and we are also paying substantial dollars in the form of tenant improvements and leasing commissions."

Despite the current economic slump, Northern and Central New Jersey witnessed a relatively active leasing market in the fourth quarter of '08 and rents that are at least not dropping, according to a report from CB Richard Ellis. Nearly 1.5 million square feet was leased in Q4, an increase of 294,000 square feet from the previous quarter, but a 590,000-square-foot drop from a year earlier. The vacancy rate stood at 19.4% in Q4, not far off from the previous quarter's level of 19.7%. However, the current rate did rise 2.1% from Q4 2007. Average asking rents rose slightly to $25.70 from $25.64 per square foot in the third quarter. Last year, rents stood at $25.71.