203 Mill Road in Edison — Courtesy: Heller Industrial Parks
By Joshua Burd
A distributor of industrial products has leased 90,000 square feet in Edison, in one of nearly three dozen transactions that helped Heller Industrial Parks maintain full occupancy in 2017.
The industrial owner said recently that it closed 32 leases totaling some 4 million square feet across its portfolio last year. The largest and highest-value new deal was the 90,000-square-foot commitment by HD Supply at 203 Mill Road in Edison.
“Tenants continue to seek out well-located and well-managed properties at very competitive rents,” said Brian Banaszynski, Heller’s president. “Heller’s portfolio has historically remained at full occupancy throughout past market cycles. So, the current market conditions have not increased occupancy, but have helped us achieve new rent levels.”
Jason Barton and Chuck Fern of Cushman & Wakefield represented HD Supply, working with Heller’s in-house leasing team of David Paster and Fred Kurtz.
“The construction supply industry is booming, and our client’s business is growing exponentially,” Barton said. “At the same time, it has become increasingly challenging to find large blocks of available, quality industrial space in the New Jersey market.
“The building at 203 Mill Road not only met HD Supply’s size specifications, but also provides 1.6 acres for parking and outdoor storage — a critical requirement. It was a good fit, and Heller Industrial Parks Inc. worked diligently to help us get the deal done. The space had not even hit the market when the lease was signed.”
Heller also announced its largest renewal of 2017, a 193,000-square-foot lease spanning separate properties with Omega Logistics Group. The tenant, which represented by Joel Lubin, renewed at two properties in Edison.
“The U.S. economy continued its expansion, reaching the third-longest in history as of 2017,” Banaszynski said. “Even with new buildings under construction, overall supply could not keep up with the demand from e-commerce, businesses in general redoing their supply chains, and increased port traffic.
“Due to very tight market conditions, tenants and brokers are contacting us well ahead of lease expirations or target occupancy dates, as well as signing longer term leases. Barring any major unexpected macro events, we expect this trend to continue through 2018.”
