Office Beat

Lincoln Equities receives go-ahead for Highland Cross

Rutherford, N.J.-based Lincoln Equities Group has received zoning approval from the Borough of Rutherford for its mixed-use Highland Cross project. The developer now will move forward with construction plans for two 450,000 sq. ft. office towers and a 200-room luxury SpringHill Suites by Marriott hotel. The first office building is scheduled to open in spring 2002.

The 900,000 sq. ft. of office space at the Highland Cross site is situated on 28 acres located about four miles from the Lincoln Tunnel at the intersection of Routes 3 and 17. The site also is adjacent to The Meadows Office Complex, which consists of two, 12-story office buildings that total 560,000 sq. ft.

The Highland Cross buildings, designed by St. Louis-based architectural firm Hellmuth, Obata & Kassbaum, will feature high-speed voice, data and Internet services, as well as high-tech electrical and HVAC systems.

The space, offering convenient access to New York, will be marketed to both full-building users and tenants seeking 35,000 sq. ft. units.

Boeing's space program HQ stars at TrizecHahn property

The Boeing Co. has signed a seven-year lease for 157,000 sq. ft. of Class-A office space at 3700 Bay Area Blvd. in Houston's Clear Lake area. The site will serve as the new headquarters for Boeing's International Space Station Program.

The 399,000 sq. ft., 6-story office building, owned by Toronto-based TrizecHahn Corp., is situated on 21 acres near Interstate 45 and the Sam Houston Tollway, a site chosen because of its strategic placement near the Johnson Space Center.

The space will become Boeing's second-largest office in the Houston area, housing 840 employees.

Times Square property reincarnated as office center

New York City-based SL Green Realty Corp., which focuses primarily on Class-B Manhattan property, has reserved 100,000 sq. ft. of space in the landmark commercial building at the intersection of 42nd Street and Broadway for users of small office space. Times Square previously offered virtually no supply of pre-built space for small to mid-size tenants.

Originally occupied by the Knicker-bocker Hotel, the 16-story tower at 1466 Broadway has been divided into 2,500 sq. ft. to 10,000 sq. ft. pre-built units that are expected to be ready for occupancy by the end of the summer. Improvements include a new lobby, new elevator cabs, an upgraded HVAC system, expanded electric capacity and fiber-optic connectivity.

Port Authority of N.Y. and N.J. signs lease of legal center

Sharpening its focus on transportation and economic development, the Port Authority of New York and New Jersey has signed an agreement with Class-A office and industrial developer Matrix Development Group of Cranbury, N.J., to lease the Newark Legal Center for an initial term of 50 years. The deal, valued at about $64 million with payments totaling approximately $200 million, includes options to extend the lease for up to 49 years. Closing is expected in the fourth quarter of 2001.

The Legal Center, located at One Riverfront Plaza adjacent to Newark's Penn Station, includes a 20-story office tower with 411,617 sq. ft. of rentable space and a 2-story lobby with retail and restaurant establishments, as well as an underground parking garage.

The building, which originally opened in 1989, will be 100% occupied after Matrix moves in.

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Top 10 highest and lowest office market vacancy rates for mid-year 2001*

Top 10 highest total market vacancy rates:
1. Dallas/Ft. Worth 18.43%
2. Milwaukee 17.97%
3. Memphis, Tenn. 16.38%
4. San Francisco 15.67%
5. Indianapolis 15.50%
6. West Palm Beach, Fla. 14.90%
7. Dayton, Ohio 14.19%
8. Winston-Salem/Greensboro, N.C. 14.12%
9. Ft. Lauderdale, Fla. 14.10%
10. Chicago 14.09%
Top 10 lowest total market vacancy rates:
1. Ottawa 2.65%
2. Seattle 4.75%
3. Washington, D.C. 5.10%
4. Manhattan 6.30%
5. Vancouver 6.50%
6. Portland, Ore. 7.62%
7. Los Angeles 8.41%
8. Central New Jersey 8.42%
9. Southern New Jersey 8.74%
10. Colorado Springs, Colo. 9.00%
Source: Meredith & Grew Inc.
*Totals do not include suburban markets. Figures do include subleased space

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