And now for a word from our sponsor … But it really is newsworthy. Out of the 1.2 million square feet leased throughout Mack-Cali Realty Corp.’s portfolio in third quarter, nearly 783,000 square feet were taken in Northern and Central New Jersey.
But what I find most significant is that none of the transactions highlighted in the announcement were the huge, 100,000-square-foot-plus leases that can skew the statistics and make the market look more robust than it really is.
Instead, the quarter seems to have been dominated by deals by mid-sized companies. HQ Global Workplaces LLC took two leases for a total of 36,000 square feet in Jersey City and Woodcliff Lake. Capsugel signed for 27,496 square feet in Morris Township, while Optimer Pharmaceuticals took 24,337 square feet in Jersey City. Untracht Early Management signed two leases totaling nearly 24,000 square feet in Florham Park. Other deals were in the 15,000-square-foot to 22,000-square foot range.
Those may be the healthiest deals of all – medium sized businesses that are expanding or relocating to better spaces. If one doesn’t work, it’s a lot easier to relocate, downsize or replace a 20,000-square-foot user than a 200,000-square-footer. And many of these are technology or pharmaceutical companies that are actually hiring people. It’s not just the constant game of musical chairs deals that merely mean that another building is vacant somewhere else.
In the announcement, Mitchell E. Hersh, Mack-Cali president and CEO, credited “Mack-Cali’s ongoing commitment to offering a superior product, strong sponsorship, and an unmatched ‘Tenants First’ philosophy for the success.”
I’m hoping it’s a sign of success to come for other landlords, too.