Cassidy Turley recently released its Third Quarter Office Market Snapshot for Northern and Central New Jersey. We detailed the absorption rates, asking rents and availability in both Central and Northern New Jersey and found the Grow NJ tax incentives and the movement of midsize companies played significant roles in shaping the market. Although not shocking revelations, these factors help explain surges and lags and why some markets are still feeling the crunch of previous quarters, even though employment rates have increased. Shifts in the Newark submarket, particularly Prudential vacating large portion of 3 Gateway Center and moving into its own office tower, created an uptick in availability. The resulting availability at the Gateway complex was a large factor in the 86,084 square feet of negative absorption recorded during the third quarter throughout Northern New Jersey. However, the impact was lessened as the owner of 3 Gateway recently announced Prudential has signed a lease to maintain a 160,000-square-foot presence in the building based on significant internal growth. Interestingly, in many submarkets, the development of a new office building indicates a thriving economy. However, Newark’s economic recovery has been slow. Panasonic’s recent move to a new headquarters and the development of new …
CHICAGO — J.C. Anderson Inc. has completed an office expansion and renovation in Chicago for Mosaic, a sales and marketing agency. The property is located at 750 N. Orleans St. in Chicago. J.C. Anderson completed a 4,000-square-foot expansion and renovation at its office space in the River North neighborhood. The first phase of the project included expanding the sixth floor space into the adjacent office space. The second phase of the project included renovating the existing space to create an open floor plan with collaboration spaces, an exercise room and private offices. William Burfeind of J.C. Anderson was the project executive, Jason Hawkins was the senior project manager and Jose Verduzco was the superintendent for the project. IHL provided architectural services and CRESA was the project manager. Mosaic is headquartered in Dallas with offices in Chicago and Bentonville, Ark.
CHICAGO — Reed Construction will complete a 35,500-square-foot office renovation for SVM at 3727 Ventura Drive in Arlington Heights. Founded in 1997, SVM handles the sales, marketing and distribution of gift cards for major gasoline companies. The firm is relocating its headquarters to Arlington Heights from 200 E. Howard Ave. in Des Plaines. The construction will consist of demolition, the addition of office space, a new secure vault as well as a mezzanine conference room including a steel structure suspended from existing crane rails. Reed Construction’s Bryan Krueger is the principal for the project and Dan Cohen is the project manager. Wefing Deegan Studios is providing the architectural services. The project is scheduled for completion in January 2015.
WESTPORT, CONN. — Cushman & Wakefield has brokered the sale of Westport View Corporate Center in downtown Westport. Marcus Partners, on behalf of Marcus Capital Partners Fund II, acquired the two-building office campus from Invesco Real Estate for an undisclosed price. Situated on 4.5 acres at 8-10 Wright St., the 84,000-square-foot property is currently 58 percent leased. The buyer plans to invest approximately $4 million to upgrade the property. Renovations will include new enlarged windows; redesigned and upgraded landscaping, parking decks, lighting, paving, entrances and signage, as well as upgrades to the lobbies, elevators, restrooms and mechanical systems. Gary Gabriel, Andrew Merin, David Bernhaut, Brian Whitmer and Kyle Schmidt of Cushman & Wakefield handled the transaction.
The Phoenix office market ended the third quarter in a very strong position. Increasing momentum in the sector should continue into 2015. Healthier economic conditions, including a growing GDP and higher employment, are translating into increased market activity and confidence. The biggest take-away from Phoenix’s rebounding office sector is new office development, with several high-profile construction projects underway in the East Valley. Tower cranes dot the horizon along Tempe Town Lake in downtown Tempe. The largest project, State Farm’s Marina Heights, is under construction on its first phase, which includes two mid-rises totaling more than 1 million square feet. Additional phases will bring the project to more than 2 million square feet, making it the largest office project in Arizona. Hayden Ferry Lakeside III is under construction with a 10-story, 250,000-square-foot building on the lake. This is the third and final phase of this office project. Arizona State University has also jumped into the mix by announcing a huge 330-acre development on the south side of Tempe Town Lake. It is expected to incorporate athletic, commercial and residential projects at full build-out that will be utilized as a funding source for ASU Athletics. USA Place, a $400-million-plus development in downtown, …
PLYMOUTH, MINN. — CPA:17 – Global, a managed non-traded REIT of W. P. Carey Inc., has acquired a 182,000 square-foot, Class A office building for $34 million. The facility is located in Plymouth and will be leased on a long-term basis to Smiths Medical beginning in February 2015. Smiths Medical is a supplier of specialist medical devices, consumables and equipment for global markets and is one of the five divisions that form Smiths Group plc, a multinational diversified engineering company. The property will serve as Smiths Medical’s headquarters as part of a broader initiative to improve productivity and collaboration and reduce costs. The facility was constructed in 1999 as part of a mixed-use development that included retail, residential and restaurant space. The building includes modern infrastructure and features large lobbies and common areas.
ARLINGTON, VA. — Carr Properties has begun the demolition and pre-construction phase for a 175,000-square-foot, eight-story office building located at 2311 Wilson Blvd. in Arlington. The building, which is designed to achieve LEED Gold certification, will be ready for occupancy in 2017. The office building will feature street-level retail space, a conference room, restaurant and café, childcare facility, health club, bike room, rooftop terrace and an 18,000-square-foot urban park with gardens. Carr Properties has hired Spencer Stouffer, Krysta Herring and Phillip Thomas of Cassidy Turley to handle leasing the office building.
BLUE BELL, PA. — Keystone Property Group has unveiled VEVA, a 425,000-square-foot office complex in Blue Bell. Formerly known as Sentry Park West, the property features world-class lifestyle amenities and cutting-edge infrastructural upgrades. Situated on 16 acres on VEVA Boulevard, VEVA comprises seven mid-rise buildings, which have been completely renovated. The office campus is 83 percent leased by a variety of tenants, including Cigna, Citizens Bank, Fiberlink Communications, inVenity Health Clinical, Morgan Stanley Smith Barney, and Fesnak and Associates.
BOSTON — ADD Inc., now with Stantec, has completed the design for One Channel Center, the final phase of the Commonwealth Ventures’ 2.1 million-square-foot Channel Center in Boston. The eleven-story, 500,000-square-foot One Channel Center will be home to 4,000 employees of State Street Bank and is part of a multi-building master plan that includes a new two-acre park and a ten-level, 900-car garage. Located at One Iron St., the $175 million project features a two-story lobby and various green elements, including continuous insulation on the facades, efficient mechanical systems, recycled and local materials, and low VOC materials. The building is expected to attain LEED Silver certification upon completion. ADD Inc. recently joined Stantec’s Buildings Group, a team of more than 2,500 design and allied professionals.
CHESTERFIELD, MO. — The new $150 million Reinsurance Group of America (RGA) global headquarters will open this month in Chesterfield, a suburb of St. Louis. Fox Architects designed the 405,000-square-foot stone, glass and steel building, which is one of the largest projects in the St. Louis region since Centene Plaza was completed in 2010, and the largest local headquarters project in at least 20 years. The headquarters’ two five-story towers are linked by a two-story atrium lobby and amenities bar, which features 10,000 square feet of training facilities; a 7,500-square-foot fitness center; a 20,000-square-foot café, kitchen and barista; and a 500-seat cafeteria that can function as a 700-seat auditorium. The complex also includes 580,000 square feet of parking. Built on a 17-acre site, the complex will accommodate RGA’s workforce expansion over the next several years, and is master planned to include a third building for long-term growth. Fox Architects designed the interiors and was RGA’s consultant to international architectural firm Gensler on core and shell design. Clayco was the design-build contractor.