Manulife US Reit partners JLL to integrate flex spaces at New Jersey asset
FLEX by JLL has signed a management and licensing agreement to take up 15,407 sq ft of office space at Manulife US Real Estate Investment Trust’s (Manulife US Reit) 500 Plaza Drive property in Secaucus, New Jersey.
Flex by JLL is the enterprise-grade flexible space solution of real estate consultancy JLL.
In a press statement on Thursday (Sep 15), the Reit manager said Flex by JLL’s initial commitment represents some 3.3 per cent of the building’s net lettable area (NLA), with options to lease further office space in 2 phases to make up a total of 7.7 per cent of NLA by 2023.
All 3 phases are estimated to achieve a stabilised rent premium of about 30 per cent to the market, according to the management.
Flex by JLL at 300 Plaza Drive will offer flexible private offices, coworking space, meeting rooms, team suites and virtual offices. The first phase of the office space project will comprise mainly flex desks and private offices, and is expected to complete in April 2023. Phases 2 and 3 comprise mostly enterprise suites.
Tripp Gantt, chief executive of Manulife US Reit’s manager, said the building’s new flexible working offering will allow the Reit to enjoy greater upside potential by sharing a majority of the operating profits with the operator.
A NEWSLETTER FOR YOU
Tuesday, 12 pm
Property Insights
Get an exclusive analysis of real estate and property news in Singapore and beyond.
“We believe that this product (Flex by JLL) presents a compelling value proposition for tenants to justify paying a rent premium for the flexibility and amenities offered by the flex office solution. This would also allow Manulife US Reit to maintain its relationships with tenants, and creates a real possibility of new flex tenants eventually converting into traditional tenants,” said Gantt.
“Above and beyond these benefits, integrating flex space into Plaza will also drive foot traffic in the building.”
Acquired by Manulife US Reit in July 2017, 500 Plaza Drive is an 11-storey office property within Harmon Meadow.
SEE ALSO
Units of Manulife US Reit ended Wednesday US$0.015 or 0.9 per cent lower at US$0.505.
Copyright SPH Media. All rights reserved.
