MORRISTOWN, NJ – Following an active 12 months highlighted by 19 new leases, renewals and expansions totaling more than 120,000 square feet, Headquarters Plaza in Morristown has reached 95 percent occupancy. Cushman & Wakefield’s Robert Donnelly, Jr. and Ben Brenner serve as exclusive leasing agents for the 571,000-square-foot landmark office property, which is owned in partnership by the Olnick Organization and Fisher Development Associates.
“New tenants are migrating to Morristown, and those companies that have been here continue to grow and thrive,” Donnelly said. “Importantly, the town offers all the benefits of urban living in the suburbs. With its transit infrastructure, busy amenity-rich downtown and diverse housing options, Morristown resonates the live/work/play theme that is occurring throughout the United States. Simply put, employers who want to attract the best employees are coming here to gain competitive advantage.”
Cushman and Wakefield’s latest reports on urbanization and millennial workplace preferences show that the value-premium for commercial developments and workplaces near walkable, urban centers cannot be overstated – from improving a city’s chances of attracting the best young talent to the revitalization of the urban core.
Headquarters Plaza has benefitted. During the past year, the property’s vacancy rate has dropped from approximately 25 percent to 5 percent – its lowest level in more than a decade, according to Donnelly. The recent activity involves commitments by nine new tenants, including Atradius, AVNET, Blackwater Capital, Capax Global, Houston International Insurance Group, KMK Consulting, Newmark Grubb Knight Frank, OREXO and Revolution Digital.
Six tenants – ACA Compliance, Advanced Systems Concepts, Avison Young, Jackson Lewis, Pearl Therapeutics and The State of New Jersey – expanded at the property. And four tenants renewed their leases, including Fred Alger, Hertz, PLT Health Solutions and Raymond James.
According to Donnelly, strong local demand extends beyond Morristown’s office sector. “The entire town is thriving,” he said. “The resident population is growing, new restaurants and service tenants are opening, and the hospitality market – as evidenced by increased occupancy at Headquarters Plaza’s Hyatt Regency Hotel – is enjoying increased business from the corporate population as well as leisure travelers.”
Tenants are consistently drawn to the property’s quality accommodations and on-site amenities, including a five-level parking garage, day care, health club, restaurants, shops, and more than 31,000 square feet of meeting space.
“Morristown and the New Jersey suburban commercial real estate market as a whole have evolved considerably over the past 35 years,” Donnelly noted. “Thanks to the vision of Headquarters Plaza’s ownership, the property has continually adapted to meet the changing needs of office tenants. Today is no exception, and the property is well positioned to continue as a preferred local business address.”