MILLVILLE, N.J. — New York-based investment and development firm Irgang Group has welcomed three new tenants at Union Lake Crossing, a 393,000-square-foot shopping center in the Southern New Jersey community of Millville. Bath & Body Works, AAA South Jersey and Jersey Mike’s have signed deals for 4,400, 1,945 and 1,500 square feet, respectively. Mario Brunelli and Chelsea Reizner of R.J. Brunelli & Co. represented the landlord in all lease negotiations. Reizner and Brunelli also represented AAA South Jersey. Jarrad Coletta of Coletta Commercial represented Jersey Mike’s, and Adam Rosenfarb of MSC represented Bath & Body Works. Irgang Group acquired Union Lake Crossing, which is now more than 99 percent leased, in late 2021.
— By Erick Parulan — The Orange County industrial market, along with Los Angeles and the Inland Empire, is experiencing a general decline in leasing activity as it navigates the post-pandemic landscape. Tenant demand and leasing have significantly slowed as occupiers adopt a more cautious approach to expansion, with some occupiers deciding to downsize and consolidate their industrial footprints. Tenant occupancies continue to contract in the second quarter, with manufacturers, retailers and 3PL (third-party logistics) companies shedding unused space that may have been acquired during the pandemic frenzy, further increasing sublet availabilities. Orange County sublet availabilities surpassed 3.3 million square feet in the second quarter of 2024, raising total availabilities to 9.5 percent for the quarter. While pandemic-driven rental rates hit historic highs, they have since cooled amid softening demand. Many landlords now offer increased free rent concessions to attract new tenants. Average asking lease rates have been on the decline in Orange County over the past two quarters. They decreased by 5.2 percent from the prior quarter, reaching $1.64 per square foot in second-quarter 2024. High market rents previously deterred many occupiers, but with rents on the decline, some tenants have adopted a wait-and-see approach to see where rates …
HOUSTON AND WEBSTER, TEXAS — Dallas-based EōS Fitness has signed two retail leases totaling 94,842 square feet in the Houston area. The deals are for 53,829 square feet at Center at Baybrook in Webster, a southwestern suburb, and 41,013 square feet at Easton Commons Plaza on the city’s northwest side. EōS Fitness will respectively backfill spaces formerly occupied by Bed Bath & Beyond and an undisclosed movie theater operator. Both openings are slated for 2025. Kevin Sims, Shireen Owlia and David Meyer of NewQuest Properties represented EōS Fitness in both sets of lease negotiations. Christi Vinzant internally represented the landlord, Kimco Realty, in the Webster deal. Kathy King and Charles Blaschke of Edge Realty Partners represented the undisclosed landlord in the East Commons deal.
WHITELAND, IND. — Sojo Industries has signed a 151,950-square-foot industrial lease in Lot 5 of Mohr Logistics Park in Whiteland, a southern suburb of Indianapolis. Mark Writt of CBRE represented ownership, Mohr Capital. Jim Scott and Steve Shaub of Avison Young represented the tenant, which is a technology company engaged in advanced robotics, mobile manufacturing and modular packaging solutions for delivering packaging and assembly services for the food-and-beverage industry. Sojo maintains production facilities in Pennsylvania, California, Texas and Indiana, along with mobile sites throughout the country. All locations utilize high-speed automated lines and robotics to handle packaging materials. Additional tenants at Mohr Logistics Park include Goodyear, DHL and Turn 14. The industrial park totals 475 acres, and Mohr plans to develop more than 7 million square feet of bulk industrial buildings.
ARLINGTON, TEXAS — Lee & Associates has negotiated a 40,018-square-foot industrial lease in Arlington. According to LoopNet Inc., the property at 4100 New York Ave. was built in 2018 and totals 110,468 square feet. Mark Graybill and Reed Parker of Lee & Associates represented the landlord, New York City-based Link Logistics Real Estate, in the lease negotiations. Brian Gilchrist of CBRE represented the tenant, Lapgear, which provides surfaces for office and lifestyle activity usage.
WASHINGTON, D.C. — CBRE has negotiated a 7,282-square-foot office lease at 1050 17th Street, a trophy 11-story office building in Washington, D.C. Randy Harrell, Lara Nealon, Joe Coleman and Brittany Gosnell of CBRE represented the landlord, Hines, in the lease negotiations. Tucker Farman of JLL represented the tenant, Allsteel, a manufacturer of workplace furnishings and products. The LEED Gold-certified office building features a fitness center, 100-person multipurpose conference center and a lounge on the second floor. Other tenants at the 154,000-square-foot property include Davis Polk and Dweck Properties.
NEW YORK CITY — StubHub has subleased 100,000 square feet of office space at 4 World Trade Center in Lower Manhattan. The live event ticket marketplace operator, which signed a 44,000-square-foot office lease at 3 World Trade Center for its new headquarters in 2023, will take immediate occupancy of one floor and occupancy of two other floors at a later date. Scott Bogetti, Kirill Azovtsev, Michael Bertini, Brad Wolk and Will Joumas of Savills represented Stubhub in the sublease negotiations. Sheena Gohil of Colliers represented the undisclosed sublessor. Silverstein Properties owns the building.
For more than seven months in 2024, the commercial real estate investment market remained on a sluggish path. High interest rates continued to not only challenge many asset owners who needed refinancing, but also buyers and sellers looking to make deals. For instance, some $174.7 billion in property investment sales during the first half of the year was 7 percent below a year earlier, according to MSCI Real Assets. In such uncertain times, it’s not unusual for the commercial real estate market to experience bouts of bifurcation. Typically, those are marked by trends such as rising demand for higher quality offices during economic slumps when tenants can fetch discounted rents. Early in the recovery phase, it’s not unusual for investment to flow into tech-oriented metros at the expense of other cities. The Federal Reserve’s aggressive hike of the federal funds rate has created another category of bifurcation, especially as it relates to floating-rate bridge debt and how lenders are managing their loan portfolios. That is, the difference between the performance of assets depending on when owners financed the properties, says Jeff Salladin, a managing director with Dallas-based private debt fund Revere Capital. “It’s a question of vintage,” he explains. “Loans …
CARTERET, N.J. —DSV Global Transport & Logistics has signed a 355,000-square-foot industrial lease in the Northern New Jersey community of Carteret. The Danish freight company will occupy the entirety of the building at 300 Salt Meadow Road, which is located within the 1.2 million-square-foot Crow Holdings at Carteret development. Jules Nissim, Stan Danzig and Kimberly Bach of Cushman & Wakefield represented Crow Holdings in the lease negotiations. Mindy Lissner, also with Cushman & Wakefield, represented the tenant. The deal brings the development to roughly 45 percent occupancy following last fall’s 188,000-square-foot lease with Hong Kong-based Weida Freight Systems.
CHARLESTON, S.C. — Atlanta-based SJC Ventures, along with general contractor Hill Construction, has completed Phase II of West Ashley Station, a shopping center located at 1125 Savannah Highway in Charleston’s West Ashley neighborhood. Spanning 29,000 square feet, the second phase is fully leased to tenants including Hollywood Feed, Hand & Stone, Another Broken Egg, Pacific Dental, GoodVets, Jersey Mike’s Subs, Nothing Bundt Cakes, CAVA, Nikita Hair Salon, House of Sage (a women’s boutique retailer) and Serotonin Centers. Several tenants in the second phase are already open. SJC Ventures expects all tenants to be open by February 2025. John Orr and Lindsey Halter of Carolina Retail Experts marketed West Ashley Station for lease. Phase I of the property includes a 45,062-square-foot Whole Foods Market that opened in 2018.