Strong demand predicted in 2000

Lincoln Property Company remains very optimistic about the New Jersey marketplace. We are experiencing very strong tenant demand throughout our million square-foot office portfolio statewide. Our focus in New Jersey continues to be on value-added acquisitions and on investing in repositioning Class B office buildings.

Driving the state's low vacancy, rate and strong absorption trends are the overall lack of new construction, low unemployment and the continual growth of the state's high-tech and health-related industries.

An example of how our strategy of repositioning older facilities is proving to be successful can be witnessed at Crossroads Corporate Center in Parsippany. Spanning three stories, with all new HVAC systems, enhanced landscaping, a new distinctive brick and glass facade and new lobby and common areas, Crossroads Corporate Center recently underwent a multi-million dollar renovation. A state-of-the-art energy management system was also installed, with computer control over the main rooftop unit and all individual variable air volume boxes. The 76,262 square-foot Class A office building is receiving very strong tenant interest, and we have recently closed the building's first lease for 25,962 square feet by Magellan Behavioral Health.

Additionally, Lincoln Property Company continues to make acquisitions that meet our investment criteria. Recent acquisitions include: The Nissin Foods Building, a 72,227 square-foot office building in Fort Lee; 205 Robin Road, a 62,000 square-foot office building in Paramus; and 2 Sylvan Way, a 54,000 square-foot office building in Parsippany.

Part of our strategy is also to acquire critical mass in key markets in New Jersey. For example, in the Parsippany market, one of the strongest in the state, we have been able to acquire over 600,000 square feet of space over the last two years. Our view is that valueprices, quality construction and professionally maintained product will continue to experience high occupancy rates while there is virtually no new construction taking place.

We are extremely confident that the new year possesses excellent investment opportunities in B and C properties. At Lincoln Property Company, we expect to continue to be one of the state's most active buyers in New Jersey in the new millennium.

COPYRIGHT 2000 Hagedorn Publication
COPYRIGHT 2001 Gale Group