According to Dan Ackerman, senior director of leasing at Lincoln Equities, J&J's sublease was set to expire June 30, 2010 and it is staying in the same amount of footage as it did prior to signing the new lease. Colliers Houston & Co. advised the tenant in the deal.
J&J has been a subtenant in the building for several years, although Ackerman did not know the exact number. He tells GlobeSt.com that J&J had been subleasing the space from Great West Insurance.Ackerman declined to specify the financial structure of the lease, saying only that it was a "competitive transaction" within the marketplace. A fourth-quarter report from Marcus & Millichap Real Estate Investment Services pegs effective office rents in the Piscataway/South Plainfield submarket at $13.64 a square foot.
One Centennial Plaza spans about 236,000 square feet. It is currently fully leased, but approximately 100,000 square feet will become available July 1 when Great West vacates the remainder of its space in the complex, Ackerman reports.
The new J&J lease took about a year to negotiate, Ackerman says. "A quality asset like this is in demand with a good credit tenant like this," he says. "This deal demonstrates our ability to capitalize on strong relationships, both directly with our tenants and with the brokerage community, in terms of creating the need and commitment for a long-term transaction, even in a pretty volatile market where there are many alternatives, some of them more aggressive than this in terms of pricing. A quality asset and a quality ownership structure go a long way in today's market."
Located at 1 Centennial Ave., One Centennial Plaza is comprised of three interconnected three-story buildings of class-A office space. Built in 1984, the buildings are situated just off of Interstates 287, 78, the New Jersey Turnpike and the Garden State Parkway.
Deals like this one in today's poor economy is a positive sign for activity in New Jersey's office market, said Joel Bergstein, president of Lincoln Equities, in a statement. "Completing deals of this size and scope are not commonplace during these difficult times, particularly in a market that is defined by small transactions," he stated.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
