Manulife US Real Estate Investment Trust announced that it has just entered into a management and licensing agreement for Flex by JLL to take up 15,407 sq ft of office space at 500 Plaza Drive in Secaucus, New Jersey, making up 3.3% of the building's net lettable area (NLA). This is accompanied by options for Flex by JLL to lease a further 20,451 sq ft in two phases, bringing the combined floor plate to 35,858 sq ft (7.7% of NLA) by 2023. In all, the three phases are expected to achieve a stabilised rent premium of ~30% to the market.

Flex by JLL is JLL's enterprise-grade flexible space solution. The agreement marks the first official ground-up Flex by JLL office space to come to market in the U.S. It follows MUST's announcement in its 1H 2022 financial results where it shared its two-pronged approach to capture growing market demand for flex and modernised office space. Its strategy involves partnering best-in-class operators to offer more flexible workspace in its buildings as tenants seek the option of expanding and contracting as needed, as well as shortlisting portfolio assets for rejuvenation.

The Flex by JLL space at Plaza will offer flexible private offices, coworking space, meeting rooms, team suites and virtual offices to organizations and residents in the region. The space includes ergonomic furniture, Tier 1 fibre broadband internet access, interactive client portals to book meeting rooms digitally, an on-site hospitality team and audio-visual equipment. Its location within Plaza, an 11-story office property situated within Harmon Meadow, offers tenants a variety of on-site amenities and provides convenient access to the New Jersey Turnpike, Route 3 and surrounding hotels, restaurants and retail.

In total, the three phases will cost ~$6.8 million to build out over two years. Phase 1, comprising mostly flex desks and private offices, is expected to be completed in April 2023, while Phases 2 and 3 will comprise mostly enterprise suites.