2549-18 Exhibit to Ordinance Adopting Redevelopment Plan for Essex Green and Executive Drive Properties.pdf

300 EXECUTIVE DRIVE REDEVELOPMENT PLAN | Township of West Orange, Essex County, New Jersey REDEVELOPMENT CONTEXT – SUBURBAN OFFICE MARKET rated as Class C office space, which is not well positioned to For several decades, New Jersey’s economy and employment compete in the oversaturated office market described in the base grew substantially through the construction of suburban Rutgers Report. office parks. The majority of these facilities, built during the 1980s Office Building Class Definitions: Office space is grouped into and 1990s predate modern technological and infrastructure three classes ranked A through C. The rating system looks at needs. Facilities of this vintage are often physically outdated factors including rent, building finishes, system standards and and located in suburban communities near highway efficiency, building amenities, location/accessibility, and market interchanges or along highway corridors. perception. The scale is a subjective system that is meant to rate the competitiveness and desirability of the space in question. The most recent Rutgers Regional Report, dated October 2017,  Class A buildings have the highest rents, are geographically written by James Hughes and Will Irving, outlines ongoing trends accessible, and have state of the art systems, modern in the New Jersey economy. The report discusses the change amenities, and high quality finishes. These are new or recently over the last 10 to 15 years of increased development in the upgraded facilities. metropolitan cores and contraction in suburban areas.  Class B buildings are generally fair to good for the area, and Demographic changes, consumer preferences,

urban areas.  Class B buildings are generally fair to good for the area, and Demographic changes, consumer preferences, and the nature have adequate building systems. The rents for these buildings of many industries has changed and reduced the demand for are generally in the average range. suburban office corridors and their aging infrastructure. In order  Class C buildings are identified as merely functional space to stay competitive, office buildings that were built for a singular that can secure below average rents in the area. narrow focus need to become more flexible and attractive to (Source: BOMA International the modern economy and its new generation of employees.1 www.boma.org/research/pages/building-class-definitions.aspx) According to LoopNet.com, a commercial real estate listing service, the 300 Executive Drive Building was built in 1984, and is 1 “Rutgers Regional Report – Issue Paper No. 38 “New Jersey’s Economic Roller Coaster” p.20-25 https://rucore.libraries.rutgers.edu/rutgers-lib/54266/PDF/1/play/ 12 | July 2018 HEYER, GRUEL & ASSOCIATES