Empowering People
& Revitalizing the Community

Prime Ofice Space Available for Pittance in Camden

Posted on 3/19/2014 by EDTP Coordinator in Small Business Policy
image

In a deal between the state and Cooper’s Ferry Partnership, 116,000 square feet of deeply discounted office space will soon be available at the L3 building in Camden.

Cooper’s Ferry plans to purchase the massive office building at 100 Market St. from the state’s Economic Development Authority. The deal is expected to close within 60 days, according to David Foster, president of Cooper’s Ferry.
 
Tenants who relocate to the building will be eligible for incentives provided by the state under the New Jersey Economic Opportunity Act. And according to a Cherry Hill office broker marketing the space, those incentives could exceed a tenant’s net rent for the first 10 years of a lease term.
 
The 22-year-old building is currently leased by L3 Communications, a New York-based defense contractor with 700 employees in Camden.
 
L3 is giving up its second-floor space as part of the deal but will remain in the building.No layoffs are planned.
 
“L3 is much more efficient now than in 1992,” Foster explained. “So they will be keeping the same number of employees. And they’ve adjusted their lease commitment to stay another 10 years in downtown.”
 
Foster wouldn’t comment Monday on details of the transaction but said funding for the purchase is coming from private sources.
 
Cooper’s Ferry works to establish public and private partnerships to effect sustainable economic revitalization and promote Camden as a place to live, work, visit and invest.
 
“We’re still working on the financing plan, but it will all come together,” he added. “This is a great opportunity for the city.
 
“It’s a real gem of a building, with class A amenities like a gymnasium and a full-service cafeteria.”
 
Foster said about a dozen companies have already expressed interest.
 
A maximum of four tenants would occupy second-floor space in the building, to be called the Camden Innovation Campus after the deal is signed. Foster said he expects the first leases to be signed in the next four to six weeks.
 
“Then it will take some time to get the spaces in shape for the tenants, and I would say companies will start moving by early fall.”
 
State Sen. Donald Norcross, D-Camden, who co-wrote the Economic Opportunity Act, called the transaction “the tip of the iceberg of things to come in Camden.”
 
“The act created this climate that will continue to bring jobs and opportunity to Camden,” he noted. “There continue to be significant conversations going on with several large employers who want to relocate to the city.”
 
The Market Street building is in a Garden State Growth Zone, enabling tenants to receive economic incentives.
 
Dan Close, a broker with Jones Lang LaSalle, said market rates in Camden are trending upward based on supply and demand. Jones Lang represents Cooper’s Ferry.
 
“Before this (deal), the vacancy rate was 3 percent; now it’s up to 18 percent,” Close explained. “Rents in Camden now are in the $20- to $30-per-square-foot range.”
 
Source:
www.courierpostonline.com/article/20140318/NEWS01/303180033/Prime-office-space-available-pittance-Camden