APRIL 1, 2011

Denholtz Associates leasing activity is trending upward, suggesting businesses in its core markets are once again signing new leases and expanding existing space. So far this year, the company has signed or renewed almost 400,000 square feet of space, compared to 304,000 square feet in the last quarter of 2010. “Our transactions last year--totaling 1.2 million square feet--were up 25% from 2009. This year we are on track to do a lot more. Our hope is that 2011 is going to bring us out of the doldrums of the past couple years,” said Kristine Hurlbut, senior v.p. of leasing.

The Matawan, N.J.-based company’s properties typically cater to smaller tenants looking for an average of 5,000 square feet. “Entrepreneurs and small businesses are our bread and butter,” Hurlbut said, adding that the company is finally seeing a resurgence of new businesses. It is seeing the most activity in its home state, she added. Absolute Fencing Gear recently signed a 24,000-square-foot lease at Bridgewater Business Park in Bridgewater while Air Adams Entertainment, an inflatable indoor playground chain, signed a 13,100-square-foot lease at 145 West Ethel Road West in Piscataway, N.J.

Meanwhile, the company has inked deals totaling 10,300 square feet in 1776 Peachtree Street, a 212,000-square-foot, Class B Atlanta office that it acquired in 2005. Denholtz is carrying out a $5 million capital improvements campaign, Hurlbut explained, adding that the spurt of new deals in the property is more likely a result of its renovations than an overall market improvement. “There is a lot of competition in this market, and the problem is, once the city gets to 20% vacancy, it starts building again,” she said.

Denholtz’s other key market—Orlando--has yet to see improved activity. The company owns 280,000 square feet of commercial real estate in the city, which was almost fully leased at the height of the market. “Now we’re probably at 60%. Orlando still has a ways to go before it recovers,” Hurlbut said.