JERSEY CITY, NJ—Mack-Cali Realty Corporation completed 273 lease transactions aggregating 2.8 million square feet in its consolidated commercial portfolio in 2016. Mack-Cali says 35 percent were for new leases and 65 percent were for renewals and other tenant transactions. These deals allowed the firm to finish 2016 with a percentage leased of 90.6 percent in its core, waterfront, and flex properties, 150 basis points higher than year-end 2015.
The 2017 expirations in the company's core, waterfront, and flex portfolio total 2.1 million square feet or 11.2 percent of the portfolio. These expirations are heavily weighted towards the end of the year and on the waterfront, which Mack-Cali calls “the healthiest” market. The company also notes that its 2017 expirations will be reduced to 1.8 million square feet after removing assets the company is currently considering for sale.
For the year, Mack-Cali's core, waterfront, and flex portfolio produced a cash rental rate rollup of 10.9% and GAAP rollup of 20%. For the fourth quarter, rollup was 3.5% cash and 12.2% on a GAAP basis. The Company experienced a roll up on 87% of the transactions. For 2016, 204 transactions were used in calculating rent roll, of those, 177 were up, five flat, and 22 down.
“We believe that the cash and GAAP roll up we experienced in the last five quarters is embedded in our future expirations,” says Michael J. DeMarco, Mack-Cali President. “We have also benefited from reduced tenant costs during 2016. The increasing revenue and reduction of attainment costs is leading us to an ever improving AFFO. Our transforming portfolio is providing us with a strong base to produce excellent results.”
JERSEY CITY, NJ—Mack-Cali Realty Corporation completed 273 lease transactions aggregating 2.8 million square feet in its consolidated commercial portfolio in 2016. Mack-Cali says 35 percent were for new leases and 65 percent were for renewals and other tenant transactions. These deals allowed the firm to finish 2016 with a percentage leased of 90.6 percent in its core, waterfront, and flex properties, 150 basis points higher than year-end 2015.
The 2017 expirations in the company's core, waterfront, and flex portfolio total 2.1 million square feet or 11.2 percent of the portfolio. These expirations are heavily weighted towards the end of the year and on the waterfront, which Mack-Cali calls “the healthiest” market. The company also notes that its 2017 expirations will be reduced to 1.8 million square feet after removing assets the company is currently considering for sale.
For the year, Mack-Cali's core, waterfront, and flex portfolio produced a cash rental rate rollup of 10.9% and GAAP rollup of 20%. For the fourth quarter, rollup was 3.5% cash and 12.2% on a GAAP basis. The Company experienced a roll up on 87% of the transactions. For 2016, 204 transactions were used in calculating rent roll, of those, 177 were up, five flat, and 22 down.
“We believe that the cash and GAAP roll up we experienced in the last five quarters is embedded in our future expirations,” says Michael J. DeMarco, Mack-Cali President. “We have also benefited from reduced tenant costs during 2016. The increasing revenue and reduction of attainment costs is leading us to an ever improving AFFO. Our transforming portfolio is providing us with a strong base to produce excellent results.”
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Steve Lubetkin
Steve Lubetkin is the New Jersey and Philadelphia editor for GlobeSt.com. He is currently filling in covering Chicago and Midwest markets until a new permanent editor is named. He previously filled in covering Atlanta. Steve’s journalism background includes print and broadcast reporting for NJ news organizations. His audio and video work for GlobeSt.com has been honored by the Garden State Journalists Association, and he has also been recognized for video by the New Jersey Chapter of the Society of Professional Journalists. He has produced audio podcasts on CRE topics for the NAR Commercial Division and the CCIM Institute. Steve has also served (from August 2017 to March 2018) as national broadcast news correspondent for CEOReport.com, a news website focused on practical advice for senior executives in small- and medium-sized companies. Steve also reports on-camera and covers conferences for NJSpotlight.com, a public policy news coverage website focused on New Jersey government and industry; and for clients of StateBroadcastNews.com, a division of The Lubetkin Media Companies LLC. Steve has been the computer columnist for the Jewish Community Voice of Southern New Jersey, since 1996. Steve is co-author, with Toronto-based podcasting pioneer Donna Papacosta, of the book, The Business of Podcasting: How to Take Your Podcasting Passion from the Personal to the Professional. You can email Steve at [email protected].
