Prologis Says Hello to New Tenant in N.J.
- Mar 07, 2016
Newark, N.J.—With the help of commercial real estate services firm CBRE Group, Prologis has found a new tenant for 60 Lister Ave., a 352,000-square-foot industrial facility in Newark, N.J. CBRE reeled in international meal kit delivery company HelloFresh to occupy the standalone building in its entirety.
It didn’t take long. Prologis wrapped up the acquisition of 60 Lister as part of an $820 million, 5.4 million-square-foot portfolio purchase from Morris Realty Associates in January, and just two months later, the logistics real estate provider landed HelloFresh as a tenant. The premier facility was developed on nearly 17 acres in 2014, but it was more than the property’s size and Class A designation that caught the attention of HelloFresh and other potential occupants.
“The building’s amenities—new construction, 36-foot ceiling height, cross-dock loading, trailer and car parking—and access to a vibrant labor pool combined with a strategic location to service New York City and the Ports of Newark and Elizabeth make it very attractive to users in the market,” Thomas Monahan, executive vice president with CBRE, told Commercial Property Executive. HelloFresh will use 60 Lister as a distribution center.
State-of-the-art industrial buildings are not easy to come by in Newark these days. Monahan noted that less than 2 percent of Newark’s approximately 51.5 million-square-foot industrial inventory would be considered core product—assets built in 1997 or later with a minimum 30-foot ceiling height. The market is tight in general. According to a CBRE report, Newark’s average industrial vacancy rate was just 5.4 percent in the fourth quarter of 2015, compared to New Jersey’s average of 7.8 percent. Additionally, absorption in the submarket was among the highest in the Garden State, with roughly 585,000 square feet of positive net absorption. There’s something about Newark.
“Location always plays a pivotal role in all real estate decisions from investors, and users alike. Newark benefits by having one of the top locations in the New Jersey market accessing all four quadrants–north, south, east, west,” Monahan added. “Tenant’s needs are shifting and newer buildings, albeit few, are in high demand. The northern portion of New Jersey continues to be one of highest barriers to entry markets in the U.S.”