Mack-Cali Realty Corp. (CLI), a fully integrated real estate investment trust (REIT), has recently extended its lease agreement with Verizon New Jersey, a unit of Verizon Communications Inc. (VZ) – a leading global broadband and telecommunications company. With the 5-year lease extension deal, Verizon would continue to occupy the 600 Horizon Center Drive building at Horizon Center Business Park in Hamilton Township, New Jersey.

Spanning across 95,000 square feet of space, the leased property is one of six buildings in Horizon Center Business Park strategically situated amidst a thriving business district in central New Jersey, and offers a premier office environment with state-of-the-art facilities. Mack-Cali had earlier developed the building in 2002 for Verizon, who served as its tenant since then. The current lease extension agreement, therefore, reinforces the long-term relationship of both the participating companies.

Mack-Cali is primarily engaged in owning, leasing, managing, and developing Class A office and industrial/flex properties. The company focuses on high-barrier markets mostly in the suburban areas in the northeast and mid-Atlantic regions in the U.S., and derives most of its annualized base rents from New Jersey.

With debt-free ownership of the bulk of its portfolio, Mack-Cali offers a faster and more streamlined leasing process. In addition, the company is structured as a vertically integrated company, providing a full range of leasing, property management, construction, legal, space planning, and architectural services under a single platform.

We maintain our ‘Neutral' rating on Mack-Cali, which presently has a Zacks #2 Rank that translates into a short-term 'Buy' recommendation and indicates that the stock is expected to outperform the overall U.S. equity market for the next 1–3 months.