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Mack-Cali Completed 273 Leases for 2.8M SF in 2016

Michael DeMarco, president, Mack-Cali Realty Corporation Michael DeMarco, president, Mack-Cali Realty Corporation

JERSEY CITY, NJ—Mack-Cali Realty Corporation completed 273 lease transactions aggregating 2.8 million square feet in its consolidated commercial portfolio in 2016.  Mack-Cali says 35 percent were for new leases and 65 percent were for renewals and other tenant transactions.  These deals allowed the firm to finish 2016 with a percentage leased of 90.6 percent in its core, waterfront, and flex properties, 150 basis points higher than year-end 2015.

The 2017 expirations in the company’s core, waterfront, and flex portfolio total 2.1 million square feet or 11.2 percent of the portfolio. These expirations are heavily weighted towards the end of the year and on the waterfront, which Mack-Cali calls “the healthiest” market. The company also notes that its 2017 expirations will be reduced to 1.8 million square feet after removing assets the company is currently considering for sale.

For the year, Mack-Cali’s core, waterfront, and flex portfolio produced a cash rental rate rollup of 10.9% and GAAP rollup of 20%.  For the fourth quarter, rollup was 3.5% cash and 12.2% on a GAAP basis. The Company experienced a roll up on 87% of the transactions. For 2016, 204 transactions were used in calculating rent roll, of those, 177 were up, five flat, and 22 down.

“We believe that the cash and GAAP roll up we experienced in the last five quarters is embedded in our future expirations,” says Michael J. DeMarco, Mack-Cali President. “We have also benefited from reduced tenant costs during 2016. The increasing revenue and reduction of attainment costs is leading us to an ever improving AFFO. Our transforming portfolio is providing us with a strong base to produce excellent results.”

 

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