MATAWAN, NJ-Leasing is up and so, slightly, are lease lengths, reports Denholtz Associates in its second quarter overview. Even entrepreneurs are back in the market.
The developer reported the completion of 68 leases in the state during the second quarter for about 266,700 square feet, each about 20% higher than Q2 2010. “We’re beyond cautious optimism to optimism,” Steven Geltzeiler, director of leasing, tells GlobeSt.com. “The value of the deals also has gone up.”
Among the company’s deals during the quarter were: a three-year extension for 20,300 square feet with Advance Telecom Resources; a five-year extension for 12,410 square feet with BCC (USA) Inc.; a new lease for 19,358 square feet with Zhong Ya Chemical (USA) Ltd. at Piscataway Corporate Center; and a five-year extension for 20,000 square feet at the Edgeboro Corporate Center in East Brunswick.
Occupancy at the company’s New Jersey portfolio has risen from 84% to 88%, “the highest it’s been for a couple of years,” Geltzeiler says. Lease lengths also are beginning to increase.
The recent market turmoil has not resulted in panic by potential tenants, he adds. Another positive note is that smaller spaces, of 1,000 square feet or so, are being taken by small companies. “The entrepreneurial companies seem to be waking up,” he says. “ Software development companies seem to be doing relatively well, and anything related to medical.”
Rates are still under pressure and larger companies still take longer to commit, he adds. Fortunately for Denholtz, the bulk of its portfolio features tenants in the 3,000-square-foot to 4,000-square-foot range. “In today’s market, we’ll take occupancy over rates,” he says. “Tenant retention is key.”
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