Atlantic Health System inked long-term lease renewals totaling 533,000 square feet in three New Jersey office buildings.
The nonprofit private healthcare company, which operates hospitals and healthcare facilities in New Jersey, houses its corporate headquarters and some medical offices at 435, 465 and 475 South Street in Morris Township, about a mile from the company’s Morristown Medical Center. The lease includes a 32,000-square-foot expansion at 465 South Street.
A Colliers International team led by Bryn Cinque and James Bailey represented Atlantic Health System in the transaction.
The major lease is an encouraging sign for an office market whose future has been thrown into question by the pandemic-driven shift to remote work. The Garden State’s office availability rate in the first quarter climbed to 21.6 percent, up 4 percentage points from the same time last year, according to a report from Avison Young New Jersey.
Chicago-based Harrison Street Real Estate Capital acquired the office buildings mostly occupied by Atlantic Health System for about $138 million in 2018, according to public records. Harrison Street declined to comment.