JACKSON CROSS PARTNERS REPORTS THE WILMINGTON OFFICE MARKET IS STABILIZING
Wilmington, DE – August 4, 2010 – “The Greater Wilmington office market showed signs of stabilizing during the first half of 2010,” said Pete Davisson, Partner at Jackson Cross Partners. “While leasing activity still lagged both 10 and 20 year averages, rental rates were essentially unchanged from the end of 2009 and vacancy rates were steady in the central business district and rose only slightly in Wilmington’s suburban office markets.”
“While national unemployment is still hovering around 9.5%, many of the factors that impact our overall economy are trending in a positive direction. Corporate earnings are increasing and businesses have begun hiring, albeit at a slow rate. If economic trends continue in a positive direction, we believe we will continue to see a stable office market in the Greater Wilmington area during the rest of this year, with further strengthening in 2011.”
Leasing in the central business district totaled 32,545 square feet of Class A space and 35,088 square feet of Class B space during the first half of 2010. Class A vacancy rates in the CBD now stand at 14.8%, down 9% since the end of 2009. Class B vacancy rates increased during the first half and are now 33.3%. The combined vacancy rate is 20.5%. As a result, full service average asking rental rates for Class B office space decreased by 3.5% to an average of $20.45 per square foot, as Class B building owners reacted to market conditions. Class A asking rental rates were unchanged at $26.35.
Leasing in Wilmington’s suburbs totaled 173,286 square feet during the first half of the year. This is a positive sign, as this represents 65% of 2009’s total leasing activity. Class A leasing was 119,940 square feet, Class B was 53,346. Vacancy rates in the suburbs remain high, with 23.4% of Class A space and 22.0 % of Class B space available. The average asking full service rental rate for Class A space is $23.52 per square foot with Class B space averaging $21.64.
Counterbalancing the positive leasing activity and the stable vacancy and rental rates was the increase in sublet space. An increase in sublet space is a strong indicator that businesses are running lean and have excess office space that they are willing to lease.
A positive sign is the construction of two office buildings by the Pettinaro Company in the central business district. The combination of The Star Building, a recently completed 163,800 square foot new construction on Justison Street near the River, and The Courthouse on Rodney Square, which is under construction, will result in more than 300,000 square feet of new office space. When completed in 2012, The Courthouse (165,000 sf) will be occupied by the law firm of Young Conaway Stargatt & Taylor.
Davisson observed, “Most people believe that absorption, the net increase or decrease in occupied space, is the best indicator of a market’s health. By that measure, we still have a way to go, as absorption was negative in both CBD & OCBD with 14,449 square feet and 99,637 square feet respectively.
“Last year was the worst year in the history of the Greater Wilmington office market. We rebounded from that low during the first half of this year. But until we see substantive and consistent positive signs in our economy, and a resulting increase in both consumer and business confidence we won’t see a return to strength. Since commercial real estate lags the economy by 12-18 months, we believed we will be well into 2011 before we see significant strengthening in Greater Wilmington’s office market,” concluded Davisson.
Jackson Cross Partners is a Commercial Real Estate company, focusing on a consultative approach to client service. The Jackson Cross team brings extensive experience in Corporate Real Estate, Brokerage, Development and Finance to the property life cycle. With offices in Philadelphia and King of Prussia, Pennsylvania; Wilmington, Delaware; and, Swedesboro, New Jersey, Jackson Cross provides market coverage throughout the Delaware Valley as well as access to markets throughout the world through its affiliation with ONCOR International.
Jackson Cross Partners is a NorthMarq Capital affiliated company. Through a joint venture with Fameco, Jackson Cross Partners provides Property Management and Retail brokerage services.
JACKSON CROSS ANNOUNCES LOUISVILLE LADDER LEASE
King of Prussia, PA – July 29, 2010 – Jackson Cross Partners, LLC today announced that Louisville Ladder, Inc. has leased 50,000 SF at the Dunks Ferry Road Industrial Park in Bensalem PA. The five year lease has a total aggregate value of just less than 1 million dollars.
Jackson Cross Partners, in cooperation with the Stephen C. Gault Co. of Louisville, Kentucky, represented Louisville Ladder in their search for a new distribution center.
Louisville Ladder, founded in 1946, is one of the largest climbing products manufacturers in the world. They are relocating their Philadelphia Regional distribution center to the Dunks Ferry Road Industrial Park in Bensalem.
Rafael Arauz, Louisville Ladder’s Logistics Manager said, “We are pleased to be able to continue to serve the Philadelphia market. The company has been distributing quality products in this area for more than 20 years and we are proud of our local employees and the high level of customer service they provide”.
Nick Adams and Louis J. Battagliese, Jr. focused their search on sites in the Bucks County market that allowed Louisville Ladder quick access to major roadways. “We searched the market and focused on quality space that matched with Louisville Ladder’s needs” said Nick Adams.
The landlord, Cobalt Capital Partners, and Mike Borski, Sr. of the Flynn Co. welcomed Louisville Ladder as a new tenant. Move in is scheduled for August of this year.
Jackson Cross Partners – ONCOR International is a full-service commercial real estate brokerage and property management organization that is headquartered in King of Prussia, PA. The firm has more than 35 brokers and related service professionals located in King of Prussia, center city Philadelphia, Swedesboro, NJ, and Wilmington, DE. Jackson Cross provides Financing and Property Management Services through active partnerships with NorthMarq Capital and Fameco Management respectively.Through ONCOR International, the firm provides client services to over 220 markets worldwide.
JACKSON CROSS ANNOUNCES QUAKER SAFETY BUILD TO SUIT
King of Prussia, PA – July 29, 2010 - Jackson Cross Partners, LLC today announced that Quaker Safety recently joined Gorski Engineering Inc. to break ground on a new 28,000 square foot manufacturing and service facility at Northfield Business Campus in Richland Township, Bucks County. Gorski Engineering Inc. of Collegeville is the developer of Northfield Business Campus.
“I appreciate the hard work the Gorski team put in making this project possible and I am eager to move into the new facility,” said Pete Nicholas of Quaker Safety. “We will employ more than 40 people when we occupy the new facility in November of this year.”
Quaker Safety is one of the leading manufactures of NFPA compliant garments for Structural and Proximity Fire Fighting. Since 1986 substantial research and development has enabled Quaker Safety to design and manufacture high quality turnout gear with a quick and reliable delivery schedule. Quaker Safety’s rapid delivery, customer satisfaction and technical support remain unsurpassed in the fire service industry.
Gorski Engineering Inc. of Collegeville, Northfield’s developer, provided planning, design, construction and building service solutions to Quaker Safety. Northfield Business Campus is a 118 acre development. There is a 50 acre tract fronting on East Pumping Station Road and 68 acres of open space that preserves significant woodlands and provides riparian buffers. Jerry Gorski noted, ”The development can house up to 400,000 square feet of building on the 50 acre tract, creating an opportunity for over 600 jobs”.
Nick Adams of Jackson Cross Partners represented Quaker Safety in their search for a new facility to help expand with their growing company. “The supply constrained market of quality manufacturing buildings led us to search the build-to-suit market,” said Nick Adams of Jackson Cross Partners. “Gorski Engineering was able to design a new facility tailored to meet Quaker Safety’s requirements and remain within the budget. The new 28,000 SF facility will allow for Quaker Safety’s future growth.”
Financing for both Northfield Business Campus and Quaker Safety’s new facility is provided by Univest Corporation of Souderton.
Jackson Cross Partners – ONCOR International is a full-service commercial real estate brokerage and property management organization that is headquartered in King of Prussia, PA. The firm has more than 35 brokers and related service professionals located in King of Prussia, center city Philadelphia, Swedesboro, NJ, and Wilmington, DE. Jackson Cross provides Financing and Property Management Services through active partnerships with NorthMarq Capital and Fameco Management respectively. Through ONCOR International, the firm provides client services to over 220 markets worldwide.
JACKSON CROSS MANAGEMENT SERVICES CHOSEN BY GENERAL INVESTMENT AND DEVELOPMENT COMPANIES
Boothwyn, PA - May 20, 2010 - Jackson Cross Management Services today announced they have been chosen by GID Investment Advisers LLC (GID) to manage six buildings that total 215,668 square feet at Naaman’s Creek Center. Naaman’s Creek is a 125-acre business park located on Route 322, just three miles west of I-95 in Upper Chichester Township, Delaware County, PA.
“We are very proud to be chosen for this assignment,” said Larry Zipf, President of Jackson Cross Management Services. “While we currently manage more than eleven million square feet of commercial real estate, this assignment will allow us to showcase our property management platform for the office and flex property type. GID is an experienced and respected institutional owner, and this relationship is very important to us and our company.”
“We were looking for a property management firm that has strong local relationships, local market knowledge, the ability to deliver superior services, and a commitment to provide our tenants with world-class service,” said Rich Sullivan, Vice President of GID Investment Advisers. “With Jackson Cross Management Services we believe we have found a firm with all of those qualities.”
“We welcomed the opportunity to present our credentials to GID and are honored to have been chosen,” noted Eric Gorman of Jackson Cross Partners. “Over the years we have successfully placed clients at Naaman’s Creek Center. We currently represent GID in their leasing efforts at Naaman’s Creek and are confident that working as a leasing and management team we will be able to increase tenant satisfaction by improving the overall level of service to the tenants,” concluded Gorman.”
GID’s portfolio of business parks consists of 5.1 million square feet of office, flex and industrial space in seventeen business parks located in eight states. GID also owns 1 million square feet of suburban office property and over 12,000 apartment homes spanning 12 states. GID participates with the DuPont Pension Fund, CalPERS, the State of Oregon Pension Fund and CalSTRS in co-investment joint ventures for the acquisition of flex and office commercial properties and multi-family apartment properties. GID was founded in 1960 and is a privately held organization. GID’s philosophy is that well-maintained properties with exemplary responsiveness and customer service through intensive management will provide a desirable location for businesses.
Jackson Cross Management Services was established in 2007, when Jackson Cross Partners joined forces with Fameco Management Services, one of the pre-eminent property management firms in the region to form the firm. The synergies created by this affiliation complement the core competencies of the two firms, further augment our delivery platform and provide even greater benefits to our clients.
Every year Jackson Cross Management Services prepares over 1,000 financial reports associated with the management of more than eleven million square feet including almost 900 tenants, the collection of $50 million in rent, and the payment of $46 million in expenses. Assets currently under management exceed a market value of $2 billion.
JACKSON CROSS ANNOUNCES MARCOR ENVIRONMENTAL LEASE
Aston, PA - May 6, 2010 - Jackson Cross Partners, LLC today announced that Marcor Environmental, LP has leased 11,734 square feet in the Pennell Building at 300 Turner Way in Aston Township, Delaware County, PA. The Pennell Building, an 84,200 square foot facility, is owned by Aston Investment Associates.
“This lease is indicative of what we are seeing with our industrial clients,” said John P. Morrissey of Jackson Cross Partners. “Clearly, the market has been slow for an extended period of time, but our industrial clients are beginning to see a recovery and are positioning themselves for the future.”
Mike Burke of Marcor Environmental noted, “As we have grown over the past 10 years, both our customer base and our employees have changed. Jackson Cross Partners worked with us to find a location that will serve our needs in the future and one that is well situated to serve our customers and at the same time is conveniently located for our employees.”
MARCOR Environmental, LP, founded in 1980, performs a full range of environmental contracting services. Services include industrial cleaning, asbestos and lead hazard abatement, mold remediation, plant/process decommissioning, demolition, soil and groundwater remediation, gun range remediation, storage tank management, disaster recovery work, and many other specialty project types. Offices and operations span the U.S., while worldwide affiliations bring a global perspective to the company’s management practices.
Jackson Cross Partners – ONCOR International is a full-service commercial real estate brokerage and property management organization that is headquartered in King of Prussia, PA. The firm has more than 35 brokers and related service professionals located in King of Prussia, center city Philadelphia, Swedesboro, NJ, and Wilmington, DE. Jackson Cross provides Financing and Property Management Services through active partnerships with NorthMarq Capital and Fameco Management respectively.
Through ONCOR International, the firm provides client services to over 220 markets worldwide.
JACKSON CROSS SELLS 55,000 SF PROPERTY IN SEWELL, NEW JERSEY
Sewell, NJ - April 28, 2010 - Jackson Cross Partners, LLC today announced they have completed the sale of a 54,704 square foot building located at 11 Enterprise Court in Sewell, NJ. The property was sold by Hollywood Tans Brand, LLC to New Age Fastening Systems.
“This sale presented several unusual challenges,” said Lou Battagliese of Jackson Cross Partners.
“The building owner, and our client, Hollywood Tans, set a specific date by which the sale needed to be completed. In addition, the market for industrial real estate has been slowed by the overall economy and the reduced availability of financing.”
Jim Young of Jackson Cross Partners noted, “As soon we were given the assignment we began work on a targeted marketing plan that identified the most likely candidates for the property. This plan proved to be very effective and it allowed us to quickly identify several potential buyers. As with a number of recent transactions, the user/buyer has been able to obtain financing and is able to take advantage of the market.
“In the end, we were able to complete the sale within the time specified by Hollywood Tans and enabled them to meet their objectives,” concluded Young.
The Jackson Cross Partners team consisted of Jim Young, Harry McKenna and Lou Battagliese.
Hollywood Tans Brand, LLC is the largest chain of professional tanning salons in the country with more than 250 locations nationwide. The company is based in Sewell, New Jersey and was founded in 1994. New Age Fastening Systems, Inc. is a privately owned corporation that was founded in 1996. The firm is an industry leader in the application and technology of pin studs in cyclone boilers.
Jackson Cross Partners – ONCOR International is a full-service commercial real estate brokerage and property management organization that is headquartered in King of Prussia, PA. The firm has more than 35 brokers and related service professionals located in King of Prussia, center city Philadelphia, Swedesboro, NJ, and Wilmington, DE. Jackson Cross provides Financing and Property Management Services through active partnerships with NorthMarq Capital and Fameco Management respectively.
Through ONCOR International, the firm provides client services to over 220 markets worldwide.
JACKSON CROSS NAMED EXCLUSIVE SALES AGENT FOR OFFICE BUILDINGS
Media, PA - April 14, 2010 - Jackson Cross Partners, LLC today announced they have been named exclusive sales agent for a 12,000 square foot office building located at 1100 North Providence Road in Upper Providence Township, Media, PA.
“We are pleased to have been chosen for this assignment,” said John Morrissey of Jackson Cross Partners. “The property, formerly known as the Providence Legal Center, is a three-story, office building with covered and on-site parking for 30 cars. It is located within one half mile of the Delaware County Courthouse in downtown Media.”
“The attention to detail in all aspects of both the design and construction of this property is evident at every turn,” said Mary Frances McGarrity of Jackson Cross. “The quality of the interior finishes illustrates the care with which it was designed and built in1995. I am confident that the value of this building’s superior construction and high-end finishes will be recognized quickly by an astute buyer. I don’t expect this building to be available for long,” noted McGarrty.
“The building has been leased as a multi-tenant office building, but is also ideally suited for use by a professional firm. Its location, close to downtown Media and with easy access to Route 1, the Blue Route and all major area highways is exceptional. The sale price is $2.5 million,” concluded McGarrity.
Jackson Cross Partners – ONCOR International is a full-service commercial real estate brokerage and property management organization that is headquartered in King of Prussia, PA. The firm has more than 35 brokers and related service professionals located in King of Prussia, center city Philadelphia, Swedesboro, NJ, and Wilmington, DE. Jackson Cross provides Financing and Property Management Services through active partnerships with NorthMarq Capital and Fameco Management respectively.
Through ONCOR International, the firm provides client services to over 220 markets worldwide.