9:00 AM
With the latest tenant signings by Newmark Grubb Knight Frank (NGKF), including the newly-signed Coverys Insurance, occupancy at 1776 On the Green office building in downtown Morristown has reached 98%, leaving just one 3,033-square-foot unit available. The Rutherford, N.J.-based NGKF team of Christopher Olsen, Timothy Greiner and Brendan McBride, representing owner RREEF, instituted a highly effective program to complete the lease-up.
“Our concept was to address the markets lack of small high quality units. With RREEF’s support, the lobbies and common areas were renovated with ‘high quality finishes’,” said Mr. Olsen. “We then broke up the building’s 13,000-square-foot floor plates into pre-built units with upgraded finishes ranging from 1,500 square feet to 3,000 square feet - and two of them were leased before we even completed the units. That created momentum.”
Just two years ago, occupancy at the 162,000-square-foot, 10-story building had fallen to 65% following the exit of several large tenants. RREEF recognized that the building, located at 67 Park Place on Morristown’s famed Green, needed a new approach to leasing, bringing the NGKF team on board to provide the solution. With the signing of Coverys Insurance to 5,000 square feet in a relocation within Morristown, the plan devised by the NGKF team has come full circle.
That momentum created by the pre-built signings brought the Class A building’s occupancy to 82% by last September. “Since then, we renewed seven tenants, expanded some of those tenants and, with the Coverys transaction, have nearly completed the lease-up,” he said.
In addition to the Coverys Insurance lease, major transactions have included KSA Financial Management, which signed for 7,500 square feet, expanding from 3,000 square feet from nearby Bernardsville, N.J. “As a financial services company, KSA felt it was important to be located in a more prominent, high-end location,” said Mr. Olsen.
Another key lease came with the signing of NJ.com, the provider of online news content for the Star-Ledger, Jersey City Journal and several other newspapers, which took 7,688 square feet of former retail space on the building’s ground floor. “The ground-floor location provided a private entry, identity and direct access to the Green,” he said.
In terms of tenant retention, a key renewal came when Olympus Holdings committed to expand from 7,000 square feet to almost 9,000 square feet. With the lease-up, the tenant roster of 25 firms is comprised of 30% financial services firms, with the majority of the rest being smaller, privately held companies, “looking for image, quality space,” he said.
Interestingly, the remaining 3,033-square-foot availability is a pre-built developed in conjunction with Office Furniture Partnership-also a tenant of 1776 On the Green, which is utilizing this space as a showroom currently.
“RREEF, as the landlord, was pro-active, and in a challenged market decided to upgrade the property,” said Mr. Olsen. “RREEF invested heavily into the building’s common areas and the pre-built space, building to high standards with top-flight finishes. They fully supported our plan, and the result is a thriving building and a decidedly stronger tenant base commanding higher rents.”
About Newmark Grubb Knight Frank
Newmark Grubb Knight Frank (NGKF) is one of the world’s leading commercial real estate advisory firms. Together with its affiliates and London-based partner Knight Frank, NGKF employs more than 12,000 professionals, operating from more than 320 offices in established and emerging property markets on five continents.
With roots dating back to 1929, NGKF’s strong foundation makes it one of the most trusted names in commercial real estate. Its integrated services platform includes leasing advisory, global corporate services, investment sales and capital markets, consulting, program and project management, property and facilities management, and valuation services. A major force in the real estate marketplace, NGKF serves the local and global property requirements of tenants, landlords, investors and developers worldwide. For further information, visit www.ngkf.com.
NGKF is a part of BGC Partners, Inc. (NASDAQ: BGCP), a leading global brokerage company primarily servicing the wholesale financial and real estate markets. For further information, visit www.bgcpartners.com.