A provider of remote sensing and navigation solutions for the Department of Defense, ITT Space Systems plans to use the newly leased space for general office needs. The tenant will occupy the entire third floor and part of the second floor of Building D, bringing the entire complex to 86% occupancy.
Over the past two years, 1515 Broad has undergone major renovations, having been taken down to the steel and completely rebuilt. The class A property features architectural enhancements to improve the workflow between buildings, a fitness center, cafeteria, new elevators, a new parking lot, updated bathrooms, energy efficient windows and doors and an upgraded interior.
"The significant improvements to the property continue to generate interest from a variety of high caliber tenants," says Todd Anderson, a principal at the Hampshire Cos., which has equity in assets valued at over $2 billion.
Although the firm could not disclose rental rates, a recent fourth quarter study from Marcus & Millichap Real Estate Investment Services puts effective rents in Essex County at $23.31, with vacancy in the submarket running around 11%. Due to nearly 1.8 million square feet of negative net absorption, Northern New Jersey vacancy has increased 190 basis points in the last year to 16.7%, according to the report. Also of note in the northern part of the state, says Marcus & Millichap, is that operations remain healthiest at close-in class A office properties, with year-over-year vacancy and asking rent improvements being recorded in the Meadowlands and Hackensack/Teaneck submarkets.
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