Last month, the Trumbull, CT-based purveyor of health plans to employers renewed its lease for all of 14 Central Park Drive, a 120,000-sf two-story suburban class A office building in the City of Hooksett, NH, near the I-93/293 interchange just north of Manchester.
Both deals were brokered by Thomas Farrelly, Denis Dancoes and Eric Jackson of Cushman & Wakefield's in New Hampshire. Farrelly tells GlobeSt.com the size of this latest renewal is smaller because of innovation. "They're very healthy right now, they're just doing more with less, mostly due to the deployment of new technology," says Farrelly. "It has allowed them to achieve efficiencies."
That Oxford is even staying in the same building is due to a last-minute save by the landlord, according to the broker. "The choice was down to two build-to-suit opportunities when the landlord came in with an 11th-hour offer they couldn't refuse," says Farrelly.
Like many others, the office market in Nashua has been very soft, says Farrelly. Twenty-four moths ago, the office space off Exit 1 had a low single digit vacancy rate. Now vacancy is in the 26% range. As a result, Farrelly says the market-high, $28 rents of two years ago have fallen back to the mid-to-upper teens. "There were a lot of field offices for high-tech companies off that exit," says Farrelly. "And in down economies, field offices get closed."
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