green leasing

Only three industrial projects in New Jersey are currently pursuing LEED certification, two of which are in the Newark area and owned by Pantheon Properties. The third is currently available for lease outside of Princeton in the New Jersey Turnpike Exit 8A submarket. Called the Middlesex Intermodal Center, the 583,000-square-foot warehouse is located in South Brunswick and was recently purchased by New York City-based Blackrock for $42.5 million - around $73 per square foot from developers JG Petrucci Co. and F. Greek Development. The warehouse, which occupies approximately 44 acres, includes a number of green design features, including a reflective roof and efficient lighting. It was precertified Silver under the LEED for Core and Shell system and Blackrock continues to pursue a formal Silver rating under LEED for New Construction as the property hits market now that construction is complete.

It’s somtimes too easy to lose sight of the positive, particularly when news – as it has been around here lately – is so consistently negative. There are still good things happening both in our industry and here in New York City, though, and so on this Thanksgiving I’d like to point out a number of recent green building news items of note that I think we ought to be thankful for. Happy Thanksgiving, everyone!

Even as its neighbor on the north side of West 41st Street, 11 Times Square, struggles to land its first tenant, Forest City Ratner Companies has agreed to two new leases at the New York Times Building on 8th Avenue. The deals, which were inked with the Government of Flanders and Autonomy Inc., leave just one space of approximately 6500 square feet remaining in what was the speculative office portion of the building.

The Government of Flanders took 7400 square feet on the tower's 44th floor, where it will open an office of tourism and cultural house. Automony, Inc., which is the second largest software company in Europe, will lease 5375 square feet of space on the 38th floor. CB Richard Ellis represented Forest City in both deals, with NAI Global for Flanders.

Although the local real estate market has certainly cooled in the past few months, leasing activity at two of Midtown's highest profile green commercial projects continues to remain hot. Marathon Asset Management, which agreed to pay $115 per square foot for the 38th and 39th floors at LEED Platinum hopeful Bank of America Tower in early 2007, recently agreed to a 5-year sublet for a portion of its space with Korean financial firm Mirae Asset for $150 per square foot. Although Marathon isn't the only financial services firm that's looked to shed space in light of current market conditions, it's a good sign that demand is still strong for premium Class A space, though whether One Bryant Park's green features are driving the significant lease premium is obviously pure speculation.