The recent renewal of publishing house Baker & Taylor’s distribution center in Bridgewater, N.J., is the latest transaction for Newmark Grubb Knight Frank’s (NGKF) industrial group as it responds to the unwavering demand for Central New Jersey locations from industrial tenants. The lease renewal comes shortly after NGKF represented Acuity Brands Lighting, Inc. in its recommitment to a 168,000-square-foot industrial property in Edison, N.J.
“Central New Jersey continues to be the No. 1 choice for many tenants despite the limited options for spaces greater than 150,000 square feet,” said Peter Rossi, senior managing director in NGKF’s Rutherford, N.J., office, who represented the Baker & Taylor and Acuity Brands in their deals with David Simson, NGKF’s vice chairman and chief operating officer for the New Jersey offices. “Still, we are working with existing tenants and new companies that are looking for an opportunity to get into or stay in this tight market.”
The Charlotte, N.C.-based Baker & Taylor renewed for 370,000 square feet at 1120 Route 22 in Bridgewater, plus an additional 40,000 square feet of office space that is attached to the front of the warehouse. The landlord, IndCor, was represented by Marc Petrella of Cushman & Wakefield along with Leslie Lanne in house. In June, Atlanta-based Acuity Brands renewed its 168,000-square-foot lease at 3 Kilmer Road in Edison. The owner, Branca, was represented in-house by Gavin Daniel.
NGKF research shows that four of the top five new industrial leases in New Jersey in the second quarter were signed in Middlesex County, part of the Central New Jersey market. The growing demand, particularly from big box users and online retail, helped drive Central New Jersey’s 1.6 million square feet of positive net absorption in the second quarter and 2.9 million square feet of positive net absorption year-to-date. Overall, the central New Jersey industrial market continues to outpace its Northern counterpart when it comes to absorption.
“These deals emphasize NGKF’s growing industrial platform and its ability to close significant transactions that are in our clients’ best interests, even in the most competitive of environments,” said Mr. Simson. “NGKF is responding by recruiting and continually adding resources. Our goal is always to give our clients an edge, using market knowledge and up-to-the-minute technology that often spells the difference between securing a space and watching it go by.”
Mr. Rossi and Mr. Simson expect the positive momentum to continue in Central New Jersey for the rest of 2014. Almost 3.6 million square feet of space is under construction in the region, which they expect will increase the options for tenants, but won’t quell demand.
About Newmark Grubb Knight Frank
Newmark Grubb Knight Frank is one of the world’s leading commercial real estate advisory firms. Together with London-based partner Knight Frank and independently-owned offices, NGKF’s 12,000 professionals operate from more than 330 offices in established and emerging property markets on six continents.
With roots dating back to 1929, NGKF’s strong foundation makes it one of the most trusted names in commercial real estate. NGKF’s full-service platform comprises BGC’s real estate services segment, offering commercial real estate tenants, landlords, investors and developers a wide range of services including leasing; capital markets services, including investment sales, debt placement, appraisal, and valuation services; commercial mortgage brokerage services; as well as corporate advisory services, consulting, project and development management, and property and corporate facilities management services.
For further information, visit www.ngkf.com. NGKF is a part of BGC Partners, Inc. (NASDAQ: BGCP), a leading global brokerage company servicing the financial and real estate markets. For further information, visit www.bgcpartners.com.