Big Warehouse Renewal: Sign of Central NJ's Dominance
Baker & Taylor has re-upped on 410k SF (370k SF of industrial space and 40k SF of office) at 1120 Route 22 in Bridgewater, NJ, which landlord IndCor is modernizing to 2015 standards, says NGKF New Jersey COO David Simson; he repped the tenant with colleague Peter Rossi. Renovations have become practically mandatory to retain or gain tenants—in Central New Jersey as well as nationwide—he says. 2015-model-year standard features include sprinkler systems, increased floor loads, and new HVAC. Just like David's young daughter, who asked for an iPhone for her recent birthday, everyone wants state of the art.
Here’s Baker & Taylor’s Bridgewater home. (C&W’s Marc Petrella worked with IndCor’s Leslie Lanne on the landlord side.) Baker & Taylor is a national client of NGKF, which also repped it this year in a 500k SF renewal in Indianapolis and a 250k SF one in Reno. Another national client, Acuity Brands, in June recommitted to 168k SF in Branca’s 3 Kilmer Rd (below) in Edison, NJ. That property will be renovated to like-new levels with a new roof and new office space.
Central New Jersey’s industrial market has grown in prominence in the past 10 years, David says, thanks to manufacturers and retailers that prize speed to market and loads of land with great access to highways (once you figure out how to navigate a jughandle). The market has absorbed 2.9M SF this year, and rents range from $6/SF to $9/SF, a 50% to 75% increase from three years ago. The region is home to 5,000 industrial and flex buildings totaling 365M SF, and two large build-to-suits along the Turnpike and I-287 will be announced within six months, he tells us. Plus, David’s team is repping several tenants looking for 250k SF blocks, and he’s recruiting heavily to keep momentum going.