Cushman & Wakefield Marketing 100,000+ Sq. Ft. in Agency Assignments

MORRISTOWN, N.J., June 11, 2010 – Anyone visiting downtown Morristown these days would have a hard time missing the redevelopment progress on and around the town’s famous green. As Morristown positions itself to accommodate an influx of people who are buying and renting luxury housing units at these residentially focused mixed-use projects, the town‚Äôs retail landscape is changing notably.

As leasing agent for more than 100,000 square feet of Morristown retail space, much of it being built to support this new residential inventory, Cushman & Wakefield, Inc.’s Rick Rizzuto is highly in tune with this upscale shift, including what concepts are being targeted, which tenants are leasing and where, and what the future will likely bring for the town. He elaborates in the following interview.

Describe the redevelopment picture in Morristown.
Some powerful developers are investing a lot of money in Morristown, with the aim to increase the town’s wealthy population. Rosewood, alone, has some $500 million in mixed-use projects underway, including 40 Park on the Green and The Metropolitan at 40 Park, The Highlands at Morristown Station, and The Residences at Vail Mansion. These properties are being built to the highest quality, which reflects the direction of the town as a whole. And this vision is being justified. We are seeing multi-million-dollar condo units sell on a regular basis. If things continue in the current direction, the near-term shift in the town’s mix of residents and the retailers in place to support them will be pretty vast.

This level of activity seems to go against the grain considering the current economic climate.

The current building owners and developers active in Morristown all have incredible staying power. They have continued to plan and put approvals in place through the recession. As a result, Morristown is positioned at the forefront of the recovery. In the case of Rosewood, that joint venture brand has continued to build and now has a significant number of residents in place. The 40 Park penthouses are more than 60 percent sold. The rental units at The Metropolitan and Highlands are 30 percent and 95 percent leased, respectively. Vail Mansion is 95 percent sold. We are progressing nicely on the retail as well. Other high-profile building owners, including REEF and Olnick-Fisher, are poised to take advantage of the momentum as well at places like Headquarters Plaza and 1776 On The Green. It is a very exciting time for Morristown.

Can you provide an overview of the Morristown retail projects you represent?
The Shoppes on the Green Рthe amenities component of 40 Park – includes nearly 24,000 square feet of street retail. To date, we have signed leases with AT&T and two restaurant concepts, including a gourmet burger concept and an upscale steakhouse, committing almost half of that square footage to them. For the remaining square footage we have interest and are in talks with a technology-focused electronics retailer, various health clubs, and are pretty far down the path with a well-known national coffee company aggressively looking to become a part of the 40 Park project. In addition, we are looking to bring in boutique retail – clothing companies, book stores and the like – as well as other restaurant concepts and a high-end grocer next door at The Metropolitan to round out the tenant mix. Ultimately, these tenants will play an active role in returning the Morristown green to its roots as a destination for shopping, dining and community. 

The Highlands at Morristown Station – one of New Jersey’s first designated Transit Village developments – adds another 8,000 square feet of Class A retail space to the town. We have just been approved for a liquor license there. The Morristown Train Station offers Midtown Direct Service and accommodates thousands of riders per day, making the Highlands an opportune spot for a dining establishment.

Vail Mansion has 12,000 square feet of very luxurious space. We are in talks with a few NYC-based operators as well as a large well-established bank, since this iconic property would serve best as a flagship headquarters.

1776 on the Green has an, 8,000-square-foot upscale restaurant space available,  fronting  the Morristown Green.

Headquarters Plaza has two strategic retail locations (2,277 square feet and 6,000 square feet) that would be perfect for business-friendly retailers, urgent care doctors and/or restaurants.

28 Park Place (a former Godiva store) is suitable for an open late food tenant to service the bar crowd after hours. Situated perfectly between some of the town‚’s best bars, there would probably be no better or more profitable use for that space.¬†

What does Morristown offer for retailers in terms of location benefits?
Morristown’s greatest advantages are its accessibility and its desirability to a diverse resident base. It truly is the hub of Morris County, easily accessible from major thoroughfares like interstates 287, 80 and 78, and routes 24 and 10. Manhattan is less than an hour away by train, and Newark Liberty International Airport is a short, 15-minute drive.

Morristown appeals to upwardly mobile professionals, families and empty nesters. For commuters, it offers twice the space at half the price of New York City, and is far more economical than Hoboken or Jersey City. At the same time, Morristown’s strong history as the surrogate downtown for surrounding, affluent communities like Mendham, Bernardsville and Morris Plains make it a great choice for those looking to downsize from larger homes to in-town living.

The Morristown green serves as the center for pedestrian traffic to the train, cultural attractions, dining and retail, business offices, and the county courts. Additionally, it is equidistant from the Livingston Mall and the Short Hills Mall, which makes it a good destination to complete a triangle for brands seeking multiple locations within a reasonable radius.
The bottom line is that Morristown’s infrastructure is evolving to meet increasing residential demand on and around the green. The new housing projects and support retail are creating a positive momentum, punctuated with truly attractive opportunities for retailers. Now is the time to get in on the ground floor.

In what ways is the township supporting this transformation?
Morristown as a whole is a very business-friendly community. The local government has committed its support to Rosewood, and other owners and developers for new residential development and efforts to improve the downtown experience. To this end, Morristown also has gotten behind Cushman & Wakefield as the company that is working to establish an appropriate and exciting retail mix for this rebirth. This is incredibly helpful in our efforts to draw in high-caliber retailers. 
###
 
Rick Rizzuto is a retail specialist based at Cushman & Wakefield’s Morristown office.