BlackRock Signs Major Renewal, Extension in New Jersey
JLL represented both landlord and tenant in the transaction.
In an early lease renewal for 176,000 square feet, BlackRock has both extended the term and pared back the space of its offices at Argent Ventures’ 1 University Square Drive in Princeton, N.J. JLL represented both parties in the transaction.
BlackRock extended its obligation for all of the third and fourth floors, part of the fifth floor, and some ground floor space, while relinquishing half of the fifth floor. BlackRock has been a tenant in the building since 2010.
1 University Square Drive is a five-story, 330,000-square-foot Class A office building with a two-story atrium lobby, a full-service cafeteria with private catering, a media/conference room with seating for 48 and a fitness center with locker rooms and sauna. The 18.5-acre campus has extensive amenities that include newly revamped landscaping with a walking trail; bocce, basketball and pickleball courts; electric car charging stations; and a community garden.
The property was completed in 2008 and is midway between Philadelphia and New York City along Princeton’s Route 1 Corridor. It’s less than 2 miles from downtown Princeton and has easy access to the Princeton Junction train station with AMTRAK/NJ Transit/Conrail serving the Northeast corridor.
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The JLL leasing team for 1 University Square Drive includes Executive Managing Director Tim Greiner, Managing Director Tom Romano, Senior Vice President Vinny DiMeglio, Vice President Mike Pietrowicz and Executive Vice President Jonathan Ortiz. BlackRock was represented in the transaction by JLL Chairman & President, New York Region, Peter Riguardi; Vice Chairman Matt Astrachan; Managing Director Nicole Tiger; Executive Vice President George Gemelos; and Associate Vice President Hannah Bernstein.
Other tenants in the building include engineering and environmental services firm Langan and investment consulting firm Mercer.
A JLL spokesperson stated that BlackRock’s return of 33,900 square feet (about 16 percent of the building’s total office space) to the landlord next summer will bring the building to an overall vacancy of 64 percent.
“This is a relatively small ‘post-Covid’ adjustment, compared to other companies that have right-sized their operations from leases executed before the pandemic,” Greiner told Commercial Property Executive. “Office tenants in general have embraced strategic real estate planning to streamline their operations and embrace new work models. This trend not only enhances efficiency and cost savings, but can also add much-needed high-end sublease space into the market, providing other tenants with greater access to premium office environments. The result is a more dynamic and flexible leasing landscape that supports evolving workplace needs.”
No shortage of downsizing
Speaking of downsized leases, last September Nuveen Real Estate signed Dr. Reddy’s Laboratories for 53,000 square feet at 600 College Road E. in Princeton Point, a two-building, 440,000-square-foot office campus in Princeton, N.J. The deal was arranged by Cushman & Wakefield.
The transaction was a relocation and downsize for the generic-drug maker’s North American headquarters. Princeton Point is part of Princeton University’s 2,000-acre master-planned business and research campus.
Overall vacancy in New Jersey’s office space market peaked in mid-2024 at 27.3 percent, but had slipped slightly by year’s end, “as tenants signed leases for higher-end workspaces and sublease availabilities trended lower,” according to a fourth-quarter report from JLL. Almost 500,000 square feet was absorbed in the fourth quarter, with the biggest share of that leasing coming from the legal sector.
The report foresees ongoing stabilization of New Jersey’s office sublease market, accompanied by downward pressure on overall vacancy.
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