MATAWAN, NJ-With the completion of 69 leases totaling 289,092 square feet throughout its New Jersey office portfolio in the fourth quarter of 2011, the market is recovering “slowly but surely,” says Denholtz Associates.
Portfolio-wide, Denholtz completed 103 deals totaling 454,400 square feet during the fourth quarter.
"We’re very pleased – our [New Jersey] transactions are up almost 25% in overall square footage and at least 30% in value," says Steven Geltzeiler, director of leasing of Denholtz Associates. New Jersey outpaces the rest of the portfolio, which saw a 17% rise in value.
More important, the leases being signed are longer terms. Companies that had been signing year-to-year now are being persuaded to take three- to five-year terms despite continuing pressure on rates. “If they’re going to stay a year, there may well be a premium,” Geltzeiler says.
Among Denholtz’ deals during the quarter were DML Motors Inc./Bridgewater Volvo signing a new lease for 18,000 square feet at the Bridgewater Industrial Complex in Bridgewater, NJ. DML Motors was represented by Len Nauer of Nauer Realty Corp.; Denholtz was represented by David Zimmel of Zimmel Associates.
Renewals included: Marsh & McLennan Agency extending 16,470 square feet at 1 Executive Dr. in Somerset, NJ; Bauer Publishing signing a long- term extension for 13,559 square feet at 270 Sylvan Avenue in Englewood Cliffs, NJ; and Sofradir EC, Inc. a member of Groupe Sofradir, one of the world's leading infrared imaging technology companies, signing an expansion/extension for 13,411 square feet at the Fairfield Business Center in Fairfield, NJ.
Marc Rosenberg of Cushman & Wakefield represented Marsh & McLennan, while Geltzeiler represented Denholtz. Curtis Foster of C&W represented Bauer Publishing, while Denholtz represented the landlord. Sofradir and Denholtz were represented by Stephen Olefson of Denholtz Associates.
Technology companies continue to dominate leasing, but other sectors are starting to expand, Geltzeiler says. “We are starting to see a little staffing coming back,” he observes. “And anything related to health is still going strong.”
The first quarter of 2012 has also started off well, following Denholtz’ typical pace of 30 to 35 deals a month.
“We’re averaging five to seven to eight showings a week. We’re totally entrepreneurial and the tenants we attract are totally entrepreneurial,” Geltzeiler says. “We’re very bullish going into 2012.”
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