Page 31 - RENJ Sept.21

in conjunction with information provided by a commercial real estate broker on current market trends.
Our experience points to landlords having the ability to retain tenants and look forward to full occupancy in their buildings, albeit with rate and term flexibility as a necessity in some instances to preserve occupancy.
MARK MEISNER
CEO AND FOUNDER THE BIRCH GROUP (NANUET, NEW YORK)
We have always had tremendous confidence in
the strength of
New Jersey’s
suburban office
sector, which is
largely driven by
its talent pool.
While we began
focusing on this
market well before the pandemic, we feel the recent shift to the suburbs and key markets throughout the state will continue to drive lease momentum and renewals.
With many companies solidifying their return to office plans, we feel strongly about investing in our well-
located properties that boast robust amenity packages and outdoor space. It’s more important than ever before that landlords and owners take a proactive, hands-on approach to
the management of their assets and enact tailored capital improvement strategies to meet and exceed
the evolving needs of tenants. We continue to listen carefully to our tenants, which we see as a huge differentiator in today’s competitive marketplace..
ERIC RUBIN
SENIOR VICE PRESIDENT, CREM AND NORTHEAST REAL ESTATE COLUMBIA PROPERTY TRUST (MORRISTOWN)
Given continued uncertainty in the office market, lease renewals in 2022 should be approached with flexibility from both landlords and tenants. This uncertainty continues to be based on companies evaluating space needs against the impact of remote and hybrid work schedules. On the tenant side, companies are looking to establish criteria such as headcount range, density and how the office space fits into their future business plans. After taking those factors into consideration with their architects
and consultants, tenants should then communicate with their landlords to determine how
this space can either work or be reconfigured to satisfy these objectives. On the other side, while landlords recognize the
challenges facing tenants, they also must balance that with operating their buildings in a financially viable way and the need to structure leases on terms that make economic sense. To help tenants with 2022 renewals, landlords can look at providing
free rent, tenant improvements and expansion or contraction rights,
but those concessions need to be commensurate with a tenant’s starting rent and lease term commitment.
DAVID STIFELMAN
MANAGING DIRECTOR JLL (PARSIPPANY)
First COVID-19, and now the Delta variant has pushed office tenants and landlords into another environment of uncertainty as the company’s return to work (RTW) plans have once again become fluid and pushed
REALESTATENJTM 29 back until this wave of uncertainty
passes. Tenants have been questioning which model they should follow. Will my talent commute back to the office or do the employers need to establish offices closer to their talent?
Landlords have been preparing
for tenants to return to the office. Well-funded landlords are upgrading their properties with both amenities and infrastructure improvements
to attract and
retain tenants.
Cautiously
optimistic
well-funded
tenants with
an upcoming
lease expiration
are making
a flight to quality with long-term commitments that provide them with the most flexibility to accommodate their workforce. These same landlords have been holding their pricing though providing tenants with greater concessions. Most other tenants that are not facing lease expirations are not making any bold moves until this current variant passes. RE
Transforming the
Built Environment
AMA is providing MEP, Low Voltage and Audio Visual design for the relocation of the Eisai US Headquarters to the technologically-advanced, cutting-edge ON3 campus in Nutley, New Jersey. Eisai will fully occupy 200 Metro Boulevard, a build-to-suit, 300,000 sf, 15-story, LEED Gold office tower on the campus with plans to transfer 1,200 corporate staff and research & development functions to the new location in fourth quarter 2021.
Eisai | 200 Metro Boulevard | Nutley, NJ
AMA Consulting Engineers
122 Main Street, Madison, NJ 07940 | 973.377.7702 | amapc.com
DESIGN SERVICES
MEP, Low Voltage, Audio Visual
CONSTRUCTION MANAGEMENT
SJP Property Solutions
ARCHITECT
HLW
PROJECT MANAGEMENT
Savills
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