113,000-SF Sublease Lures N.Y. Dweller to N.J.
- Apr 27, 2011
April 26, 2011
By Barbra Murray, Contributing Editor
Sublet space is not overflowing in New Jersey’s Northern Bergen County, and the availability of such options has just dwindled with Total Office Planning Services’ sublease of the 113,000-square-foot building at 333 Starke Rd. in Carlstadt, N.J.
Commercial real estate services firm Cushman & Wakefield Inc. orchestrated the transaction, representing TOPS, as well as the unidentified sublessor. The structure at 333 Starke first rolled up its industrial doors in the mid-1970s. TOPS will utilize the space to assemble and distribute office furniture to clients based in Manhattan, which is within 10 miles of the property.
The new sublease agreement allows TOPS to relocate its office furniture wares and assembly activity from its current 155,000-square foot Long Island warehouse at 38-20 Review Ave. to more suitable accommodations. Stephen Elman, one of the Cushman brokers who facilitated the deal, noted that the building offers the ceiling heights, loading doors and New York proximity that the company required.
While Long Island has to wave bye-bye to TOPS, the city’s industrial market, like that of Northern Bergen County, continues to fare better than most as the country crawls out of the economic downturn. The markets’ first quarter average vacancy rates are a respective 4.7 percent and 6 percent, compared to the national average of 9.5 percent, according to statistics from commercial real estate services firm Cassidy Turley. In terms of sublet space in Northern Bergen County, the tally at the close of the first quarter was approximately 124,700 square feet.
Although subleasing opportunities are now scarce in Northern Bergen County, they are still somewhat plentiful in the greater Northern New Jersey region, where sublet vacancies total just over 1 million square feet.