Colliers Team Helps Normandy Fill 83,000SF at Dedham and Norfolk Place

DEDHAM, MA—Office leasing has been spotty in many parts of the suburban landscape, but Normandy Real Estate Partners has been spot-on in its strategy for attracting tenants to a pair of properties here along Route 128’s southern flank. A quartet of recent commitments—including three fresh deals—has boosted occupied space at Dedham Place and at nearby Norfolk Place to more than 83,000 sf since last spring when Colliers International was brought on as exclusive leasing agent for the assets.

“There has been good activity there, and more importantly, the deals have been encouraging from an economic standpoint,” relays Colliers International broker Caleb Hudak, part of the leasing team that also includes James L. Elcock and David B. Goodhue. While not providing specifics on terms, Hudak says Dedham Place has been commanding rates in the mid- to high-$20’s per sf, well above the market norm that has been in the $22- to $24- range per sf since the recession depressed rent levels for many landlords.

Hudak credits a combination of amenities, location and “strong sponsorship” for helping Normandy buck the schizophrenic climate and perform at the top of the submarket for its high-end Dedham Place, a four-story, 159,000-sf building at 3 Allied Dr. The three-story, 47,500-sf Norfolk Place at 333 Elm St. is a value option that has also generated robust leasing this year, whereas certain tenants have been willing to pay for the added level of quality available at Dedham Place.

Among the firms matriculating to that property is INX Inc., a leading telecommunications provider that is leasing 8,000 sf at Dedham Place, with the firm slated to move into its new quarters next month from nearby 780 Dedham St. “They were looking to upgrade their image, and felt this was a good opportunity to do so,” explains Hudak. Goodhue joined RBJ broker Patrick Buckley as advisors to INX Inc.

Meanwhile, NewAlliance Bank is making the move this month from another first-class asset in the area, 690 Canton St. in Westwood, with Normandy’s offering able to accommodate a tripling in size to 12,130 sf. Nathanael Kessler of CBRE/New England guided NewAlliance on that pact. “We’re excited to be welcoming them,” says Hudak.

Normandy is also making way for toymaker icon Hasbro Inc., which has inked a 14,700 lease in the property after a search of the area conducted by FHO Partners broker Michael Dalton. The renewal is similarly sized, as Reflexis executed an extension of its headquarters operations, a 13,900-sf pact in which the tenant was counseled by Neil Schneider of McCall & Almy.

The vibrant pace of leasing has brought vacancies at Dedham Place down to a tight 8 percent, whereas Norfolk Place has plunged dramatically to 10 percent. That compares to 21 and 25 percent figures respectively when Colliers International was initially engaged. According to research from the full service real estate services firm, the Route 128 South office market is averaging 16 percent vacancy at present. According to Hudak, “we’re seeing good traffic on the remaining space,” with prospects for near-term deals looking positive as the mid-year approaches.