Huge Pharma Lease Proves Trophy Offices Do Better in Suburbs

BRIDGEWATER, NJ—Valeant Pharmaceuticals International is doubling down on its office space at Somerset Corporate Center in Bridgewater, NJ. The healthcare firm signed a long-term, 620,000-square-foot lease for two full buildings within the master-planned business center. The transaction is one of New Jersey’s largest office leases of the last decade.

The transaction underscores evidence of a flight to quality in suburban office space. Recent research by CBRE suggests that trophy office buildings are outperforming the market in general and that such buildings in the Route 287/78/24 suburban submarket of New Jersey have a vacancy rage averaging 14.7 percent, vs. an overall vacancy rate for New Jersey of 21.8 percent.