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2013 Greater PhiladelphiaMid-Year Offi ce MarketReport and Outlook
2013 Philadelphia CBD Mid-Year Offi ce Market Report and Outlook
2
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MAJOR TENANTS IN THE MARKET
FMC Corporation200,000 SF
BNY Mellon90,000 SF
Pond Lehocky Stern Giordano*40,000+ SF
* Represented by SSH Real Estate
2013 SIGNIFICANT LEASE TRANSACTIONS
Pepper Hamilton268,000 SF – Two Logan Square – Renewal
Reliance Standard Life Insurance137,663 SF – Two Commerce Square – Renewal
GSA135,715 – 100 Independence Mall West – New
PHMC120,207 – 1500 Market Street – New
Benefi cial Savings Bank96,000 – 1818 Market Street – New
2013 SIGNIFICANT OFFICE BUILDING SALE TRANSACTIONS
2000 Market Street665,649 SF, sold for $110 million
or $165 per square foot
42 South 15th Street143,344 SF, sold for
$17.5 million or$122 per square foot.
1429 Walnut Street71,754 SF, sold at auction for
$5.7 million or $80 per square foot.
1600 Vine Street225,616 SF, sold for $29 million or
$128 per square foot to a charter school.
2013 Philadelphia CBD Mid-Year Offi ce Market Report and Outlook
3
OUTLOOK
Rental RatesRents throughout the Philadelphia CBD have remained relatively fl at. We expect Class B rates to increase due to the decreasing supply in that asset class. Look for this trend to continue through 2014.
VacancyOverall, vacancy rates have experienced minimal change. Three Franklin Plaza, 225,000 square feet, has been eliminated from the supply with its sale to a charter school. One Franklin Plaza, also left vacant by GSK’s move to the Navy Yard accounts for roughly 12% of the overall CBD vacancy.
Large Blocks of SpaceTenants looking for over 50,000 square feet of contiguous space are faced with a relatively limited supply. There are only 15 spaces over 50,000 square feet. Only 6 contiguous blocks of space greater than 100,000 square feet are available. The lack of large spaces on the market leaves large tenants with few options, this could lead to the construction of a new offi ce building.
Investment SalesThe investment sales market in Center City continues to gainmomentum. During the fi rst half of 2013 we have seen a varietyof assets trade. They range from stabilized Class-A offi ce,value-add opportunities, to re-development opportunities. The investor activity has triggered other owners to explore disposition of assets. There are currently 5 buildings comprising of 2.5 million square feet on the market.
New Offi ce DevelopmentThere has been no real change in new offi ce development in the CBD. The only offi ce development activity has been in UniversityCity and the Navy Yard. 2.0 University Place was recently completed.3737 Market Street is progressing and will be the anchored by Penn Presbyterian Medical Center. Liberty Property Trust hasseveral new buildings on the drawing board at the Navy Yard.
PHILADELPHIA
Overall Central Business District
Inventory
Class A Class B Total
Square Feet 23,799,489 21,206,194 45,005,683
Buildings 29 93 122
Rental Rate
Class A Class B Average
Year-End 2012 $29.10 $21.95 $25.55
Mid-Year 2013 $29.11 $22.19 $25.85
Vacancy Rate
Class A Class B Average
Year-End 2012 10.08% 11.39% 10.73%
Mid-Year 2013 11.66% 10.50% 11.12%
3737 Market Street rendering
The statistical analysis in this report has been conducted using information from
CoStar, the largest and most comprehensive database of commercial real estate
information.
2013 Philadelphia CBD Mid-Year Offi ce Market Report and Outlook
4
MULTIFAMILY ACTIVITY
Philadelphia has the third largest residential population among Central Business Districts in the Country. Over 175,000 people live in the Center City, this represents a 10% increase from 2000.* According to the 5-year estimates from the U.S. Census Bureau’s American Community Survey, 57.4% of Center City residentsare renters. High demand for rental units in Center City is confi rmedby low vacancy rates along with the highest rental rates in the region. Rental apartments in Philadelphia’s CBD boasts a low vacancy rate of 3.4%. Rents have remained relatively fl at overthe last year due to the increase in inventory.
Center City continues to see the trend of Offi ce-to-Apartment conversions. Over the past 20 years 47 Center City offi ce buildingshave been converted to apartments. This has resulted in a reductionof 7,685,000 square feet of offi ce space from the market.
This trend of conversions does not seem to be slowing down as Alterra Properties, one of the developers behind the conversionof 1616 Walnut recently purchased 42 South 15th Street withthe intention to convert to 185 apartments.
Center City has seen a signifi cant amount of new construction as well. Pearl Properties is nearing completion on the construction of The Granary and the 100% pre-leased The Sansom. In addition,The John Buck Company has delivered 319 new apartments at 2116 Chestnut Street. These three buildings total 679 units of new inventory. Brandywine Realty Trust is looking to beginconstruction on 278-units at 1919 Market Street in the fall.
SSH is currently tracking 22 new apartment projects in various stages of development. These projects could add over 4,500new units by 2015, if all are completed.
Despite the infl ux of inventory to the market it is expected va-cancy rates will remain low. This is due to the absorption of pent up demand as people begin to trade up from older units and move out of their parents’ houses. Additionally, as the economy improves people will be able to afford to not have roommates.
* Center City District’s State of Center City 2013
42 South 15th Street The Sansom, 1605 Sansom Street 2116 Chestnut Street
2013 Philadelphia CBD Mid-Year Offi ce Market Report and Outlook
5
MARKET STREET WEST
Submarket Statistics
Inventory
Class A Class B Total
Square Feet 20,057,879 8,049,240 28,107,119
Buildings 25 46 71
Rental Rate
Class A Class B Average
Year-End 2012 $29.60 $22.62 $27.30
Mid-Year 2013 $29.53 $23.10 $27.65
Vacancy Rate
Class A Class B Average
Year-End 2012 10.41% 10.43% 10.42%
Mid-Year 2013 12.53% 10.27% 11.88%
Submarket News
Public Health Management Corporation has relocated from260 South Broad to 1500 Market Street. This will eliminate a120,207 square foot block of space in Market West.
GlaxoSmithKline has vacated One and Three Franklin Plaza and moved to the Navy Yard. This was originally thought to create 870,000 square feet of new vacancies in Market West, however, Three Franklin Plaza has sold to DeMedici II for a new charter school. It is unclear what the fate of One Franklin Plaza will be,its owners have yet to announce their plans for the vacantbuilding.
Carroll McNulty & Kull*, a law fi rm from Northern New Jersey, has signed a sublease for approximately 17,000 square feet of offi cein Two Liberty.
* Represented by SSH Real Estate
Pepper Hamilton hasrenewed its lease at
Two Logan Square for268,000 square feet.
Benefi cial Savings Bank will be relocating their
headquarters from Penn Mutual Towers to 1818
Market Street. The market west building will now be referred to as Benefi cial
Bank Place.
Reliance Standard Life Insurance has renewed
its lease at TwoCommerce Square. They
will be expanding by approximately 15,000 square feet and will
occupy 137,663 square feet.
2000 Market Street has sold for $110 million.
2013 Philadelphia CBD Mid-Year Offi ce Market Report and Outlook
6
MARKET STREET EAST
Submarket Statistics
Inventory
Class A Class B Total
Square Feet 2,001,984 5,011,063 7,013,047
Buildings 2 26 28
Rental Rate
Class A Class B Average
Year-End 2012 $27.03 $21.35 $23.00
Mid-Year 2013 $27.03 $21.42 $23.02
Vacancy Rate
Class A Class B Average
Year-End 2012 2.36% 15.07% 11.37%
Mid-Year 2013 2.43% 15.46% 11.74%
SOUTH BROAD STREET
Submarket Statistics
Inventory
All Classes
Square Feet 2,995,810
Buildings 9
Rental Rate
All Classes
Year-End 2012 $21.90
Mid-Year 2013 $22.04
Vacancy Rate
All Classes
Year-End 2012 8.49%
Mid-Year 2013 5.31%
Submarket News
PREIT continues to pursue the redevelopment of The Gallery at Market East.
Submarket News
The South Broad submarket continues to have some of the lowest vacancy rates in the CBD.
One South Broad Street is currently being marketed for sale. A 25,000 square foot Walgreen’s store will be opening this summer in the former Border’s space.
Dranoff Properties broke ground at the beginning of 2013 on South Star Lofts,an 85-unit new apartment buildingwith ground fl oor retail. Occupancy is expected in the spring of 2014.
1429 Walnut Street has been sold at auction forapproximately $80 per square foot. The buyer
will continue to lease the building to offi ce tenants.
1401 Walnut Street has been purchased by Pearl
Apartments for $15 million.Pearl has purchased fl oors
three through twelvetotaling 76,596 square feet consisting of 36
apartments.
Host Hotels and Resorts is lookingfor a buyer to purchase thePhiladelphia Marriott Downtown. This is Philadelphia’s largest hotel with 1,400 rooms. Host believes it could sell for $325 million, or $231,000 per room.
2013 Philadelphia CBD Mid-Year Offi ce Market Report and Outlook
7
INDEPENDENCE MALL
Submarket Statistics
Inventory
Class A Class B & C Total
Square Feet 1,739,626 5,150,081 6,889,707
Buildings 2 12 14
Rental Rate
Class A Class B & C Average
Year-End 2012 $26.03 $21.35 $22.52
Mid-Year 2013 $26.67 $21.60 $22.88
Vacancy Rate
Class A Class B & C Average
Year-End 2012 15.50% 11.24% 12.31%
Mid-Year 2013 12.24% 8.24% 9.24%
UNIVERSITY CITY
Submarket Statistics
Inventory
Class A Class B & C Total
Square Feet 2,190,116 1,303,591 3,493,707
Buildings 8 11 19
Rental Rate
Class A Class B & C Average
Year-End 2012 $34.25 $23.13 $30.62
Mid-Year 2013 $37.96 $23.24 $32.47
Vacancy Rate
Class A Class B & C Average
Year-End 2012 8.61% 7.57% 8.27%
Mid-Year 2013 8.21% 6.37% 7.52%
Submarket News
Reputation Changer, Inc., now Brand.com has relocated from West Chester to The Curtis Center. The move to Center City is a growing trend among technology companies geared towards attracting top young talent.
Submarket News
Rental Rates in University City remains the highest of thePhiladelphia submarkets. Much of the activity in this submarketis due to the continued expansion of the “Eds and Med” sector.
Brandywine along with joint venture partners Campus CrestCommunities and Harrison Street Real Estate Capital havecommenced construction on The Grove at Cira South, a 33-story 850-bed student housing complex located 31st and Chestnut Streets. Third quarter 2014 is the targeted date for completion.
University Place Associates are nearing completion on 2.0 UniversityPlace. The approximately 97,000 square foot building will be anchored by GSA’s Citizen and Immigration Services who signed a lease for 53,000 square feet. U.S. Facilities, Inc. will be relocatingfrom 1800 JFK Blvd.
Drexel University has purchased 3161-67 Market Street.This parcel plays an integral role in Drexel’s strategic plan.
401 Market Street has been sold as part of a 40 building,
$240 million portfolio.
GSA’s relocation to the Dow Chemical building was a key
driver of the decrease invacancy in the submarket.
2013 Suburban Philadelphia Mid-Year Offi ce Market Report and Outlook
8
OUTLOOK
Rental RatesAs a whole rental rates have remained fl at during the fi rst half of 2013. The average suburban rental rate increased $0.11 per square foot since the end of 2012. Expect rents to continue to increase gradually during the remainder of 2013.
VacancyThe average vacancy rate for the suburban market saw little change, decreasing by 0.67% in the fi rst half of 2013.
Investment SalesThe Blue Bell area saw one of the biggest investor sales in thesuburbs. Keystone Property Group has purchased 16 and 18 Sentry Park West from Mack-Cali. The price was $19.3 million or roughly $102 per square foot.
New DevelopmentSpeculative new development has yet to resume, however thereare a number of properties slated for redevelopment. There are some ongoing built-to-suit projects underway as well.
Liberty Property Trust is developing a new 200,000 square foot offi ce building for Vanguard at Great Valley Corporate Center. Construction is expected to be fi nished mid-2014. Liberty is also renovating One County View Road in Malvern.
Shire’s built-to-suit at Atwater Corporate Center has been scrapped, and they have decided to remain at Chesterbrook Corporate Center. With the recent completion of the new turnpike interchange the Atwater Corporate Center remains poised to be a top competitor for any large build-to-suit in the market.
MAJOR TENANTS IN THE MARKET
URS80,000 SF – Ft. Washington, Plymouth Meeting, Conshohocken
Rovi Corporation70,000 SF - Radnor
PRA International50,000 SF – Blue Bell
SUBURBAN PHILADELPHIA
Overall
Inventory
Class A Class B Total
Square Feet 43,157,572 32,027,496 75,185,068
Buildings 471 608 1079
Rental Rate
Class A Class B Average
Year-End 2012 $24.23 $18.72 $21.86
Mid-Year 2013 $24.26 $18.88 $21.97
Vacancy Rate
Class A Class B Average
Year-End 2012 12.72% 14.69% 14.13%
Mid-Year 2013 11.78% 14.38% 13.46%
2013 SIGNIFICANT LEASE TRANSACTIONS
CSL Behringer – 191,654 SFMaschellmac Offi ce Complex, King of PrussiaRenewal with Expansion
Telefl ex – 84,000 SFCrossPoint at Valley Forge, WayneNew Lease
New Penn Financial – 52,000 SFMultiple buildings, Plymouth MeetingRenewal with Expansion
CardioNet, Inc. – 46,972 SF1000 Cedar Hollow Road, MalvernNew Lease
Bristol-Myers Squibb – 45,484 SFFort Washington Executive Center, Fort WashingtonNew Lease
2013 Suburban Philadelphia Mid-Year Offi ce Market Report and Outlook
9
RADNOR | MAIN LINE
Submarket Statistics
Inventory
Class A Class B Total
Square Feet 2,681,501 1,706,528 4,388,029
Buildings 32 44 76
Rental Rate
Class A Class B Average
Year-End 2012 $30.11 $20.61 $26.53
Mid-Year 2013 $30.41 $20.56 $26.58
Vacancy Rate
Class A Class B Average
Year-End 2012 5.9% 9.00% 7.07%
Mid-Year 2013 5.6% 7.00% 6.10%
Submarket News
The Radnor-Main Line submarket remains one of the strongestin the region. Vacancy continues to fi ll as rental rates continueto exceed $30 per square foot.
J.G. Wentworth expanded into an additional 15,000 square feetat 201 King of Prussia Road.
CONSHOHOCKEN
Submarket Statistics
Inventory
Class A Class B Total
Square Feet 3,464,735 859,745 4,324,480
Buildings 26 12 38
Rental Rate
Class A Class B Average
Year-End 2012 $28.93 $21.49 $27.41
Mid-Year 2013 $28.65 $22.84 $27.49
Vacancy Rate
Class A Class B Average
Year-End 2012 10.00% 5.30% 9.04%
Mid-Year 2013 9.70% 2.50% 8.26%
Submarket News
Conshohocken remains one of the stronger submarkets. Thismarket has seen a 0.78% decrease in vacancy.
Mercy Health Systems renewed their lease at 1 W. Elm Streetfor 86,293 square feet.
RES signed a lease for 9,000 square feet at Radnor Financial Center.
2013 Suburban Philadelphia Mid-Year Offi ce Market Report and Outlook
10
MALVERN | EXTON | WEST CHESTER
Submarket Statistics
Inventory
Class A Class B & C Total
Square Feet 7,501,368 4,587,671 12,089,039
Buildings 102 111 213
Rental Rate
Class A Class B & C Average
Year-End 2012 $21.48 $19.50 $20.68
Mid-Year 2013 $21.98 $19.94 $21.21
Vacancy Rate
Class A Class B & C Average
Year-End 2012 14.30% 14.20% 14.25%
Mid-Year 2013 11.80% 18.20% 14.23%
Submarket News
CardioNet, Inc. will be moving their operations to 1000 Cedar Hollow Road in January 2014. They signed a sublease for 46,972 square feet.
PREIT will be opening a 32,000 square foot Main Line Healthfacility in its Exton Square Mall.
Meridian Bank has moved its headquarters to the formerIMC Construction Building on Lancaster Avenue.
Shire Pharmaceuticals has abandoned its plans to build a new headquarters at the Atwater Corporate Center.
West Pharmaceutical Services has relocated to a new170,000 square foot headquarters building in the
Eagleview Corporate Center.
J. W. Pepper & Son, Inc. purchased 191 Sheree Blvd. in Exton, PA from Elite Underwriting Services, Inc. for $5.1 million, or about $118 per square foot. The new owner will occupy the building
in the fall.
2013 Suburban Philadelphia Mid-Year Offi ce Market Report and Outlook
11
NORRISTOWN | VALLEY FORGE
Submarket Statistics
Inventory
Class A Class B & C Total
Square Feet 2,445,571 1,906,208 4,351,779
Buildings 20 30 50
Rental Rate
Class A Class B & C Average
Year-End 2012 $19.66 $16.77 $18.44
Mid-Year 2013 $20.94 $16.96 $19.20
Vacancy Rate
Class A Class B & C Average
Year-End 2012 15.30% 9.60% 12.89%
Mid-Year 2013 10.60% 6.80% 8.93%
Submarket News
TA Associates purchased Highview at Providence Corporate Center. The two Class A offi ce buildings totaling 183,000 square feet were purchased for $33 million or $180 per square foot.
SEI Investments has resumed construction on 37,000 squarefoot building on its 90-acre campus in Oaks, PA. SEI has been experiencing consistent growth which has resulted in the needto build the new offi ce building. When completed, the campuswill total 560,000 square feet.
Montgomery County is looking to sell One Montgomery Plaza at 425 Swede Road, they plan on continuing to lease space in the building. The County is also selling the former Sacred Heart Hospital property is under agreement to Silverang and Hallowell Development for $17.5 million. 125,000 square feet will be leased back by the county.
BALA CYNWYD
Submarket Statistics
Inventory
Class A Class B & C Total
Square Feet 2,255,808 661,812 2,917,620
Buildings 14 9 23
Rental Rate
Class A Class B & C Average
Year-End 2012 $29.24 $26.63 $28.65
Mid-Year 2013 $28.82 $27.27 $28.47
Vacancy Rate
Class A Class B & C Average
Year-End 2012 13.30% 10.30% 12.62%
Mid-Year 2013 13.60% 11.40% 13.10%
Submarket News
One Belmont Ave has tallied 40,000 square feet of new leases. Connect America will relocate from Broomall and occupy 20,000 square feet on the 12th fl oor. Atrium Executive Suites has leased 20,000 square feet on the 8th fl oor. These deals bring the building to 87% leased.
There are approximately 1,000 new apartment units planned off of Righters Ferry Road. Nolen Properties has plans for 335 units, O’Neill Properties is proposing to develop approximately 600 units on the former Connelly Container site, and Penn Real Estate Group has plans to develop 300 units on an adjacent parcel.
2013 Suburban Philadelphia Mid-Year Offi ce Market Report and Outlook
12
KING OF PRUSSIA
Submarket Statistics
Inventory
Class A Class B Total
Square Feet 7,934,336 4,116,938 12,051,274
Buildings 83 77 160
Rental Rate
Class A Class B Average
Year-End 2012 $23.90 $18.98 $22.16
Mid-Year 2013 $23.73 $18.96 $22.10
Vacancy Rate
Class A Class B Average
Year-End 2012 11.30% 20.70% 14.62%
Mid-Year 2013 12.10% 19.60% 14.66%
Submarket News
Telefl ex will relocate to 84,000 square feet at CrossPoint atValley Forge.
Crothal Services Group leased 39,674 square feet at1500-1550 Liberty Ridge Drive at the ChesterbrookCorporate Center in Wayne.
CSL Behring has renewed its lease and expanded to approximately 190,000 square feet at Maschellmac Offi ce Complex.
Shire Pharmaceuticals has reversed its decision to relocate toAtwater Corporate Center. Shire will likely remain at Chesterbrook Corporate Center. This decision averts a 425,000 square feet of vacancy that would have been created by the move.
The Children’s Hospital of Philadelphia will break ground on a 100,000 square foot specialty care center on North Gulph Road.
FORT WASHINGTON | SPRINGHOUSE
Submarket Statistics
Inventory
Class A Class B & C Total
Square Feet 1,720,660 2,012,517 3,733,177
Buildings 16 33 49
Rental Rate
Class A Class B & C Average
Year-End 2012 $22.41 $18.64 $20.38
Mid-Year 2013 $22.47 $18.63 $20.40
Vacancy Rate
Class A Class B & C Average
Year-End 2012 8.30% 20.90% 15.09%
Mid-Year 2013 9.70% 21.50% 16.06%
Submarket News
Bristol-Myers Squibb has leased 45,484 square feet at the Fort Washington Executive Center.
1015 Virginia Drive was sold to Intercontinental DevelopmentCorporation for $1.1 million. The 20,000 square foot building
was sold by The Shidler Group.
2013 Suburban Philadelphia Mid-Year Offi ce Market Report and Outlook
13
DELAWARE COUNTY
Submarket Statistics
Inventory
Class A Class B Total
Square Feet 4,376,733 3,891,168 8,267,901
Buildings 50 76 126
Rental Rate
Class A Class B Average
Year-End 2012 $24.12 $18.64 $20.38
Mid-Year 2013 $24.31 $18.06 $21.37
Vacancy Rate
Class A Class B Average
Year-End 2012 7.70% 16.40% 11.75%
Mid-Year 2013 8.00% 15.53% 11.53%
Submarket News
Paragon Real Estate Group purchased Chichester Square, a 29,025 square-foot retail center for $4.1 million, or roughly$141 per square foot.
10 Lacrue Avenue in Concordville has been sold to322 Property Holdings LP.
LOWER BUCKS COUNTY
Submarket Statistics
Inventory
Class A Class B Total
Square Feet 3,465,544 4,119,512 7,585,056
Buildings 46 94 140
Rental Rate
Class A Class B Average
Year-End 2012 $25.21 $16.50 $20.47
Mid-Year 2013 $25.65 $17.23 $21.08
Vacancy Rate
Class A Class B Average
Year-End 2012 24.90% 17.40% 20.82%
Mid-Year 2013 23.90% 15.30% 19.23%
Submarket News
Discovery Labs has extended its 39,594 square foot lease atStone Manor Corporate Center in Warrington.
Epicor Software has signed a 42,940 square foot leaseat Horizon Corporate Center in Trevose.
2013 Suburban Philadelphia Mid-Year Offi ce Market Report and Outlook
14
HORSHAM | WILLOW GROVE
Submarket Statistics
Inventory
Class A Class B & C Total
Square Feet 3,869,815 5,073,490 8,943,305
Buildings 40 69 109
Rental Rate
Class A Class B & C Average
Year-End 2012 $21.86 $18.68 $20.05
Mid-Year 2013 $21.27 $18.28 $19.57
Vacancy Rate
Class A Class B & C Average
Year-End 2012 5.80% 16.00% 11.60%
Mid-Year 2013 4.80% 16.40% 11.38%
Submarket News
ImpactRX will be relocating to 38,000 square feet at 550 Blair Mill Road in Horsham. They will be moving from 220 Gibraltar Road.
Despite a small decrease in the vacancy rate, rents have dropped by $0.48 on average from 2012.
Station Park signed a 28,000 square foot leasewith Philidor Rx Services LLC.
AMEC signed a 13,932 square feet lease for offi ce space atHillcrest Building One, located at 751 Arbor Way in Blue Bell.
PLYMOUTH MEETING | BLUE BELL
Submarket Statistics
Inventory
Class A Class B Total
Square Feet 3,441,501 3,091,907 6,533,408
Buildings 42 53 95
Rental Rate
Class A Class B Average
Year-End 2012 $23.91 $18.99 $21.58
Mid-Year 2013 $23.39 $18.93 $21.28
Vacancy Rate
Class A Class B Average
Year-End 2012 22.90% 18.30% 20.72%
Mid-Year 2013 19.10% 17.80% 18.48%
Submarket News
Toll Brothers and Brandywine Realty Trust have begun developmentof a 398 unit apartment complex off of Plymouth Road in PlymouthMeeting. They expect to complete construction in the fourth quarter of 2015.
16 and 18 Sentry Park West in Blue Bell have sold for $19.3 million, or approximately $102 per square foot. The two buildings totaling 188,103 square feet sold to Keystone Property Group.
2013 Greater Philadelphia Mid-Year Offi ce Market Report and Outlook
15
COMPANY NEWS
New Assignments
Pond Lehocky Stern Giordano has hired Pete Soens and Mike Kennedyto represent the fi rm with all of their real estate needs.
The Investment Sales team of Dan Mayock and Adam Gillespie have been selected by Temple University to sell the former Tyler School of Art inElkins Park, PA.
Recent SSH Transactions
Doug Newbert represented Philidor Rx Services LLC in a 28,000 squarefoot lease in Hatboro, PA.
Jeff Seligsohn and Eric Muller represented the law fi rm Carroll McNulty &Kull. CMK signed a 16,275 square foot sublease at Two Liberty Place.
The Investment Sales team sold the Ardmore YMCA for $2.6 million.
Pete Shrier has represented Zajac, Arias & Trichon PC in a 7,426 squarefoot lease at 1835 Market Street
Anniversaries:
Maryann Ludwick celebrated her 12th anniversary asSSH’s Controller. We would like to thank her for herendless hard work and dedication to the company.
New Hires
Carla Bonifas has joined the SSHteam as a Tenant Coordinator.Her responsibilities includeestablishing and maintainingrelationships with tenants occupying space in the SSH portfolio.
On April 28th, SSH joined hundreds of others for the March of Dimes March for Babies. We were able to raise over $6,000. The money raised helps fund research and programs for babies who are born prematurely.
SSH in the Community
Property Management News
SSH has added over 215,000 square feet to itsproperty management portfolio. The followingbuildings were added:
1710 Walton Road, Bluebell
1730 Walton Road, Bluebell
1429 Walnut Street, Philadelphia
1401 Walnut Street, Philadelphia
Investment News
SSH Real Estate has sold42 South 15th Street, a 140,000 square foot Class B offi ce building to Alterra Property Group for$17.5 million. 15th andChestnut, L.P. purchasedthe building in 2005 for$11.38 million.
SSH REAL ESTATE SERVICES
In 2012, SSH Real Estate celebrated 60 years of service to Greater Philadelphia. Through hard work and an entrepreneurial spirit,we’ve grown to become one of the largest full-service commercial real estate fi rms in the region. The only one with our size and scopeof experience in brokerage, property management and investments. Knowing the market as we do, we believe the best real estateadvisors are those who work in all aspects of the business, with an understanding of all interests involved. Our 360-degree perspective gives our clients an edge in an increasingly complex market. Our 75 professionals, experienced in all facets of the business – brokerage,management, fi nance, and construction -- provide clients with outstanding results in the full complement of commercial real estateservices:
Tenant RepresentationSSH Real Estate’s 25 brokers provide strategic tenant representationto clients in the Philadelphia area and throughout the country. With an average of 20 years experience, our brokers draw onextensive knowledge, resources and expertise to provide eachclient with exceptional service and results.
Investment ServicesSSH’s Investment Services Division focuses on investment property sales in the Philadelphia region. Our team has represented owners in the sale of over 24 million square feet of income-producing real estate worth more than $2 billion. We also provide capital market services for income-producing real estate including multi-housing, industrial, offi ce, retail, as well as developable land sites.
Non-Profi t ServicesSSH has cultivated an expertise in working with non-profi torganizations to ensure that their real estate choices are fi nancially sound and meet the specifi c needs of their constituents. Clientsinclude associations; educational, health, social service, religious, legal, arts and cultural organizations; and government agencies.
Landlord RepresentationRepresenting approximately 2 million square feet of offi ce space in Philadelphia and more than 1.1 million square feet inthe suburban market, SSH is a recognized leader in landlordrepresentation. Our buildings consistently retain high occupancy due to aggressive and creative marketing.
Property ManagementSSH manages approximately six million square feet of offi ce space in the Greater Philadelphia region. As property owners ourselves, we manage our clients’ assets as we do our own. Our staff of 50 combines experience and innovative approaches to maximize our clients’ cash fl ow while maintaining the highest quality service to our tenants.
Construction ManagementSSH performs construction management for core and shellcapital improvement projects, and new tenant improvement fi t-outs.
Receivership ServicesAs an appointed receiver, SSH provides services to banks, loan servicers and fi nancial institutions in need of help managing defaulted real estate assets for all commercial property types.
CENTER CITY OFFICE
123 South Broad Street8th FloorPhiladelphia, PA 19109T (215) 893-3000F (215) 893-1466
Jeffrey R. Seligsohn, SIOR, Partner(215) 825-1500
Peter C. Soens, Partner(215) 825-1510
SUBURBAN OFFICE
Two Radnor Corporate Center100 Matsonford Road, Suite 107Radnor, PA 19087T (610) 995-1010F (610) 995-1017
Doug Newbert, Partner(610) 995-1010 ext. 100
2013 Greater PhiladelphiaMid-Year Offi ce MarketReport and Outlook