NJ Transit Hub Perspective - Mid-year 2019 | Page 11

9 New Brunswick The New Jersey Economic Development Authority is conducting an implementation study for Devco’s redevelopment project called The Hub @ New Brunswick, which is approved for more than 2.0 million square feet of office/R&D, retail and residential space. Devco had already demolished the Ferren Mall and parking deck next to the New Brunswick Train Station to make way for the project. In 2018, Governor Phil Murphy had announced his support of the endeavor as a future innovation center for the state. Downtown New Brunswick consists of slightly over 725,350 square feet of office space within five major office buildings, excluding Johnson & Johnson’s corporate owned headquarters. After slipping below 4.0 percent in 2017, the New Brunswick overall vacancy rate inched upward. By mid-2019, the vacancy rate had reached 4.6 percent. Despite this uptick, the New Brunswick submarket maintained the lowest overall vacancy rate among the urban and suburban transit hub markets. Furthermore, the only block of available space in this market consisted of 33,685 square feet at 303 George Street – Plaza 1. Net new supply Redevelopment efforts on the residential and commercial fronts are reshaping New Brunswick’s downtown area. Landmark Properties is constructing a 21-story building at 90 New Street called The Standard at New Brunswick, which will contain 186 units, as well as ground floor retail space. The lower floors are expected to house Rutgers University students, while the upper floors will accommodate working professionals. Completion is slated by 2020. In addition, a nine-story apartment building at 78 Easton Avenue is under construction, which will contain 181 apartments and 9,000 square feet of first floor retail space. Like 90 New Street, most of the building is expected to serve university students. One of the most significant mixed-use projects completed in New Brunswick was the $172.0 million New Brunswick Performing Arts Center (NBPAC) complex. The 23-story project was developed at 11 Livingston Avenue. The NBPAC contains two theaters, 30,000 square feet of office space and 207 apartments. The building also houses the George Street Playhouse, the American Repertory Ballet, the Crossroads Theatre Company and Rutgers University’s Mason Gross School of the Arts. Net absorption total vacancy 10.0% 25,000 20,000 8.0% 15,000 10,000 6.0% 5,000 0 4.0% -5,000 -10,000 2015 2016 2017 2018 Mid-2019 2.0% The Hub @ New Brunswick