July 16, 2017
Investors paid $9.1 million for 15 Corporate Place South, a recently-renovated, 1983 office property in Piscataway, NJ.
“With the goal of maximizing occupancy and improving net cash flow, Corporate Place Partners, LLC’s leasing strategy included signing short term leases at below market level rents, which left additional opportunity for the next investor,” said Jacklene Chesler, executive managing director for Colliers International Group, which orchestrated the transaction between the buyer, 15 Corporate Place LLC, and the seller Corporate Place Partners, LLC.
The plan worked. The 138,266 square feet of space at the four-story property is 98% occupied by about 75 tenants. The local market around the four-story property is also improving.
“During the past two years, the Class B availability rate has dropped 900 basis points, from 24 percent at year-end 2014 to 15 percent at year-end 2016,” said Chesler. “Meanwhile, rental rates over this period have remained steady around $18 per square foot. If the trend in availability rate continues, this submarket may be poised for rental rate increases going forward.”
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