Michael DeMarco, president, Mack-Cali Realty Corporation
JERSEY CITY, NJ—Mack-Cali Realty Corporation completed 54 lease transactions totaling 362,075 square feet in its consolidated commercial portfolio during the first quarter. Mack-Cali says 15% were for new leases and 85% were for renewals and other tenant transactions. With these transactions, Mack-Cali finished the quarter with a percentage leased of 90.4 in its Core, Waterfront, and Flex properties, slightly below the 90.6% figure at year-end 2016.
“The first quarter was a workmanlike quarter where we continued to execute on our plan of leasing our key markets and locations,” says Michael J. DeMarco, chief executive officer. “The market remained steady from a demand perspective with ongoing showings and interest throughout the portfolio, with growing interest in our waterfront properties. Specifically, tours have picked up significantly and a number of tenants are applying for the incentive packages offered by the state of New Jersey prior to choosing a location.”
For the rest of 2017, lease expirations in the portfolio total 1.4 million square feet or 7.6% of the portfolio, with most occurring toward the end of the year, the company says.
On the Hudson River Waterfront, where Mack-Cali says it feels the market is the healthiest, the firm expects a substantial rollup in rent at today’s market levels versus expiring rent.
Rents on the first quarter transactions rolled up 11.4% on a GAAP basis in Mack-Cali’s Core, Waterfront, and Flex portfolio and 1.2% on a cash basis.
In April, Mack-Cali signed a lease with 24-Hour Fitness for a state of the art fitness facility to be built in the Mack-Cali Business Campus in Parsippany, NJ. The project further enhances the amenities in the campus and will be located adjacent to the Wegman’s shopping center scheduled to open this July. The 24-Hour Fitness lease is subject to standard contingencies and the site is expected to open in approximately 24 months.