Northeast Real Estate Business

NOV-DEC 2015

Northeast Real Estate Business magazine covers the multifamily, retail, office, healthcare, industrial and hospitality sectors in the Northeast United States.

Issue link: http://northeastrealestatebusiness.epubxp.com/i/610971

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30 • November/December 2015 • Northeast Real Estate Business www.REBusinessOnline.com M A R K E T H I G H L I G H T: N E W J E R S E Y For Newark, New Jersey, the well- documented trend toward urbanism and the emergence of creative solu- tions that position older properties to serve modern needs are creating strong momentum. At a time when leasing activity is ticking upward across the city's diverse tenant base, it also is becoming clear that Newark's superior data capacity positions the city to become a hub for tech start-ups and, ultimately, a national hub for the tech sector. For Millennials, Old is "In" According to new Pew Research Center analysis of U.S. Census Bureau data, it is estimated that about 53.5 million millennials (adults aged 18 to 34) are part of the U.S. workforce to- day. Companies run by or interested in attracting millennials — whether focused on technology or any oth- er sector — are gravitating to 24/7 downtown or urban locations. And they are seeking smart, collaborative work spaces. The result? Old is "in" — at least when it comes to tenant preferences for offce space. At The Berger Orga- nization, we are stripping antiquated ft-outs and tapping into the popular- ity of exposed ductwork, open foor plans and loft-inspired architectural elements. The resulting environments speak to modern desires and individ- ual company cultures, while paying homage to their urban settings. The recent build-out of Teach for Amer- ica's space at our The Robert Treat Center illustrates this trend. When Teach for America relocated its offces last year to the 15-story building at 50 Park Place, the end goal was to confgure the space to meet the unique needs of this organization. Teach for America's offce encompass- es about 9,000 square feet and serves as a hub in Newark for dozens of full- time staffers, and numerous corps members and alumni. We retroftted the space to create an open foor plan that lets in light and allows for the free fow of inter- action between employees. In this non-hierarchical space, members sit at bench-style seating that is ideal for teams working on specifc projects. In- dividual space is open, and only one closed-door offce exists in the entire space, and that offce belongs to the executive director. Collaborative areas include a book nook with casual seating and a kitch- en area. There are also about a dozen cubicles with low partitions to allow for some privacy. On the frst foor, a more formal meeting area was creat- ed. When Teach for America has a full house for events such as professional development sessions, staff holiday party or casual meetings, employees utilize the larger meeting area. The end result is an attractive, fexible modern work environment that fos- ters the strong teamwork for which Teach for America is known. Beyond aesthetics and function, older buildings today also can com- pete with modern product when it comes to commercial building tech- nology. Thanks to advances in fber optic-based communications, even the many century-old properties in Newark can offer the same data and communications capabilities as newly constructed properties. For example, The Berger Organization now offers Lightpath by Cablevision throughout our Newark portfolio, providing ad- vanced Ethernet-based data, Internet, voice and video transport solutions. Leveraging High-Tech Infrastructure Centrally located on the Northeast corridor, just 15 minutes by train to Manhattan, Newark has long served as a magnet for utilities and com- munications companies. As these organizations invested in their own infrastructure, the city asked them to install extra capacity. As such, New- ark's commercial inventory today sits atop a treasure trove of unused "dark" fber. Local government is making a con- certed effort to leverage these resourc- es to encourage small technology companies to establish and grow in the city. The corporate community is also on board, as illustrated by the re- cent launch of Newark Venture Part- ners, a $50 million early-stage technol- ogy venture fund supported by some of the city's top corporate leaders (such as Audible.com and Prudential Financial). Property owners are augmenting Newark's evolving reputation as a magnet for technology-focused or- ganizations. At 765 Broad Street, our frm is creating a 30,000-square-foot, full-foor technology co-working cen- ter. The building, to be delivered as move-in ready in spring 2016, will include 1,500-square-foot secure, pri- vate offces and a 3,000-square-foot collaborative common area with WiFi, lounge-style seating areas, a snack and coffee bar, fat-screen televisions, a pool table and more. At the same time, we are rebranding the entire, 200,000-square-foot building as the Newark Technology and Business Center. Newark's momentum shows no sign of slowing. According to Cush- man & Wakefeld, offce leasing activ- ity in the city totaled 223,000 square feet through mid-year 2015. This included 160,000 square feet in the second quarter alone, marking the submarket's strongest quarter of new leasing activity in more than three years. Within this very positive context, it is clear that the city's stakeholders — in both the public and private sectors — are taking full advantage of this paradigm shift that will infuence how offce space is used, and built out, for years to come. Miles Berger Chairman and CEO, The Berger Organization DATA INFRASTRUCTURE POSITIONS NEWARK TO EMERGE AS A TECH SECTOR HUB Newark Venture Partners is a $50 million early-stage technology venture fund supported by some of Newark's top corporate leaders. The Berger Organization is rebranding the 200,000-square-foot building at 765 Broad St. in Newark, New Jersey, as the Newark Technology and Business Center. It will feature a 30,000-square-foot technology co-working center. Teach for America relocated to a 9,000-square-foot space with an open foor plan at 50 Park Place in Newark, New Jersey.

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