Tuesday, April 22, 2014

LinkedIn Signs Major Office Lease in San Fran

Those who follow @GlobeStcom on Twitter and @GlobeStLIVEmay have seen a post teasing the announcement, but GlobeSt.com has learned that LinkedIn has signed a lease for the entire 26-story building under construction at 222 Second St. There has been speculation for quite a while who would fill that space, as GlobeSt.com previously reported, and now we have the answer.
The City’s Office of Economic and Workforce Development estimates that the nearly 450,000 square feet of office space can accommodate approximately 2,500 jobs in San Francisco, said San Francisco Mayor Edwin M. Lee in making the announcement today. “As a national leader in job creation, San Francisco is the perfect home for a company that is connecting people to jobs, and I am pleased that LinkedIn is significantly expanding their presence here,” said Mayor Lee. “LinkedIn’s decision to grow in the Innovation Capital of the World demonstrates, once again, investor confidence in our City.”
Tishman Speyer Co-CEOs Jerry Speyer and Rob Speyer, says that they are pleased to welcome LinkedIn to its roster of tenants. “Our objective is to build the very best, sustainable office properties in the best cities around the globe, meeting the high quality space needs of leading organizations. We have had great results in San Francisco, successfully delivering signature office and residential properties to the market in the past several years, with more on the way.”
Headquartered in Mountain View, LinkedIn has been steadily increasing its presence in San Francisco. LinkedIn currently has 135,000 square feet at One Montgomery Tower and soon will be occupying 87,000 square feet at 505 Howard St.
“With this new building, LinkedIn is committed to expanding in San Francisco, giving us even more access to some of the most talented professionals in the world across a variety of functions, including technology, sales, and operations,” says LinkedIn Head of Workplace Jim Morgensen. “We look forward to San Francisco becoming a larger part of our growing Bay Area presence.”
The new 222 Second St. was designed and is being constructed for LEED Gold certification, and will be ready for occupancy in early 2016. Along with other on-site and area amenities it will feature 8,500 square feet of public space.
“Today’s San Francisco office market is thriving, with companies recognizing the many advantages of a state-of-the-art building in a downtown location,” says Tishman Speyer senior managing director Carl Shannon. “This building was planned and designed accordingly, and we think LinkedIn is a perfect fit.”
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Power Rundown: Hot real estate (Video)

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Saturday, April 19, 2014

Market Trend: Philadelphia Industrial Vacancy Rises to 8.8%

The Philadelphia Industrial market ended the first quarter 2014 with a vacancy rate of 8.8%. 

The vacancy rate was up over the previous quarter, with net absorption totaling negative 173,516 square feet in the first quarter. That compares to positive 5,032,863 square feet in the fourth quarter 2013. Vacant sublease space decreased in the quarter, ending the quarter at 1,359,371 square feet. 

Tenants moving into large blocks of space in 2014 include: Walmart Distribution moving into 1,200,000 square feet at 2785 Commerce Center Blvd, Amcor Rigid Plastics moving into 480,000 square feet at West Park Distribution Center, and Excel moving into 200,225 square feet at 101 Commerce Dr. 

Rental rates ended the first quarter at $4.52, a decrease over the previous quarter. 

A total of three buildings delivered to the market in the quarter totaling 214,056 square feet, with 9,801,800 square feet still under construction at the end of the quarter. 

This trend is compared to the U.S. National Industrial vacancy rate, which decreased to 7.8% from the previous quarter, with net absorption positive 46.96 million square feet in the first quarter. Average rental rates increased to $5.39, and 279 buildings delivered to the market totaling almost 27.8 million square feet. 

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Factory-Built Prefab Mansions That Fold Into Place (Video)

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Friday, April 18, 2014

Drexel Grad Nick Schorsch REIT CEO Takes on New York City (Video)

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‘Vintage’ Shopping Center Sold in Bucks County

by Antoinette Martin, the New Jersey and Philadelphia editor for GlobeSt.com
The Fairless Hills Shopping Center here was acquired by The Klein Group of Florham Park, NJ, for $9.5 million.
The price equates to $50.13 per square foot for the 189,489-square-foot shopping center at 500 Lincoln Highway in the Bucks County community. The seller was Earle W. Kazis Associates, Inc., a real estate holding company based in New York City. 
Fairless Hills Shopping Center is anchored by Pathmark Super Center and Big Lots. The property had been owned by the original developer since its construction in 1971 and was 100% leased at the time of sale. Tenants included Retro Fitness, Tuesday Morning and Family Dollar.
The property is located on the US-1 Business Route, less than three miles from the Oxford Valley Mall, the largest mall in Bucks County,
“Fairless Hills Shopping Center has tremendous upside in enhancing the aesthetics as well as the tenancy in the area, which is the second-largest retail submarket in the Philadelphia suburbs." 
He said Fairless Hills Shopping Center is one of the oldest retail centers in the market. While many other “vintage shopping centers” in the area were re-developed over the last ten years, “this one was missed, creating much demand regionally for the value-add opportunity presented as it traded for the first time.”

Graham building at 15th and Chestnut in Center City purchased

by Natalie Kostelni, Staff writer for Philadelphia Business Journal

The special servicer overseeing a defaulted loan on the Graham building in Center City has decided to take a deal to sell the note on the office property.
C-III Asset Management had an option to buy the note on the 240,634-square-foot building at 30 S. 15th St. and has exercised that option, according to Commercial Real Estate Direct and Trepp Inc. The building is also known as One Penn Square West.
In June 2006, an entity going under the name 30 S. 15th Associates bought the 25-story building for $35 million. That group consisted of a partnership of Grasso Holdings of Philadelphia and the Union Labor Life Insurance Co.-USA Realty Fund of Washington, D.C. The union fund served as the general partner, according to Pennsylvania Secretary of State records.
How much C-III paid for the building is uncertain. A $28.3 million loan, which was originated in 2006, was outstanding on the building, according to Trepp data. An appraisal was done last June that valued the property at $20.2 million.
Full story: http://tinyurl.com/k9pxhz9
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