Friday, September 4, 2015

Luxury student dorms (Video) #Iwannagoback

Office Space in Top Tech Cities Commands a Hefty Premium

by Steve Lubetkin,
Businesses looking for office space in the nation’s hottest tech markets should expect to pay a premium – and a hefty one in many of the top tech cities. Among them is Philadelphia’s University City, which at 45 percent had the fourth-highest rent premiums in North America.

The report, which analyzes the top 30 tech cities across the U.S. and Canada, showed an aggregate rent premium of 11 percent across all 30 markets—a number that jumps significantly higher in the hottest tech submarkets.

Vast differences in asking rates are emerging in Philadelphia, both downtown and in the suburbs, as tech tenant preferences and clustering drive demand in a few select submarkets, including the CBD and University City. Average office asking rent grew 3 percent from Q2 2013 to Q2 2015; yet in University City, rent grew 20.4 percent over the same time period, the eighth-most among top tech submarkets included in the study.  

With only 13 blocks of contiguous class A space of 100,000 square feet or more available in the Philadelphia market, new development is becoming more active. The Comcast Innovation and Technology Center and the expanding University City Science Center will add nearly 2.8 million square feet of office and lab space, furthering the tech presence in Philadelphia.

“Philadelphia is uniquely positioned for such strong tech growth because with education and medicine typically being among the strongest drivers for tech growth, Philadelphia has among the best in the world in both. With the continual investment by University of Pennsylvania and Drexel University, as well as the ongoing growth of world-class medical institutions like CHOP and Penn Medicine, along with the private investment from companies such as Comcast, the city will continue to see the tech sector grow and be a driving force in Philly’s strong economy.”

The high-tech software/services industry has created 730,000 new jobs since 2009 and was the leading driver of U.S. office market demand, accounting for 20 percent of major leasing activity, through Q2 2015. In many leading tech markets, the sector is even more dominant: in Silicon Valley, Austin, San Francisco and Seattle, high-tech companies accounted for 88 percent, 63 percent, 62 percent and 60 percent of major leasing activity through Q2 2015, respectively.

“The high-tech industry is directly supported by consumer demand and a growing number of high-tech integrated businesses, which should keep the industry strong in the years ahead and provide further support for office markets in the Tech-Thirty. Commercial real estate investors must be mindful and have realistic expectations about this historically volatile industry underpinning the health of many ‘Tech-Thirty’ office markets.”

Lehigh Valley Getting Another Large Industrial

by Steve Lubetkin,
The Lehigh Valley is getting another industrial development, as Dermody Properties and PCCP will develop a 475,800-square-foot industrial facility at 4200 E. Braden Blvd. in Forks Township, PA.

Dermody Properties will start construction on the facility, known as LogistiCenter at 33, in the fourth quarter of 2015 and expects to complete construction in mid-2016. Upon completion, LogistiCenter at 33 will feature 36 feet of clear height, 226 car parking spaces and 85 trailer parking spaces.

Last month, as reported by, the partners announced the acquisition of a 43-acre site in Jonestown, Lebanon County, PA, where they plan to build LogistiCenter78-81, a class A, 405,000-square-foot distribution center.

“The Lehigh Valley is a highly desirable industrial market,” says Gene Preston, partner, Dermody Properties East Region Office. “We look forward to expanding our presence there with the addition of a state-of-the-art industrial facility at the site in Forks Township.”

LogistiCenter at 33 will be suited for warehouse, distribution and manufacturing operations. The facility is centrally located in the heart of the Lehigh Valley near such corporate neighbors as Weyerhaeuser, Crayola, Victaulic and Mondelez, and is within minutes of Interstate 78 and Route 33 via the new Main Street interchange just west of the site.

Dermody is the industrial developer and operating partner, and PCCP is the financial partner on the project.

“PCCP sees this as a compelling opportunity to develop a class A industrial facility with Dermody Properties, a best-in-class developer,” says John Randall, managing director with PCCP. “Additionally, the local industrial market incorporates all of the key fundamentals that promise to attract large user interest. Our goal is to pre-lease the property prior to completion of construction.”

“Dermody Properties has been developing facilities for lease and build-to-suit in the Pennsylvania markets for many years,” says Douglas A. Kiersey, Jr., president, Dermody Properties. “We are pleased to expand our investment in this market, and specifically in the Lehigh Valley, with the addition of LogistiCenter at 33 to our portfolio.”

Thursday, September 3, 2015

Honeygrow signs on to King of Prussia Town Center

Natalie Kostelni
Reporter- Philadelphia Business

Honeygrow, a popular fast-casual restaurant, has signed a lease at the King of Prussia Town Center.
The Philadelphia restaurant will occupy 2,400 square feet and will add to its other suburban outposts in Radnor, Pa., Bala Cynwyd, Pa., and Cherry Hill, N.J.

“We are excited about honeygrow joining the King of Prussia Town Center because it fits perfectly into our collection of high-quality national and local eateries,” said Tom Sebastian, senior vice president of development at JBGR Retail, which is developing the 260,000-square-foot retail center in King of Prussia, Pa.
More than 70 percent of the Town Center's space has been committed by tenants. Those who have signed on so far include Nordstrom Rack, REI, LA Fitness, Paladar, Old Town Pour House, Road Runner, Fogo De Chao, PNC Bank, Ulta Beauty and Hair Cuttery.

In June, honeygrow disclosed that it had secured $25 million to help fund its growth and add to its management.
It was founded in 2012, and has plans to open eateries in Hoboken, N.J., Wilmington, Del., Newark, Del., and on the University of Pennsylvania campus this year.
Full story:

Wednesday, September 2, 2015

Monthly Economic Outlook – August 2015 - Wells Fargo (Video)

Mitchell Gold + Bob Williams Store Coming to KoP Mall

by Steve Lubetkin,
Luxury home furnishings retailer Mitchell Gold + Bob Williams will lease 15,229 square feet at the King of Prussia Mall in King of Prussia, PA, the retailer’s largest store to date and its first lease with mall owner Simon Property Group.

MGBW will take a two-story space in a newly expanded wing of King of Prussia Mall. The space includes 7,127 square feet on the ground floor and 8,102 square feet on the second floor. Simon began an expansion of this wing of the mall in 2014 to add an additional 155,000 square feet of retail space for 50 new retailers and restaurants as well as a dining pavilion. Other retailers in the expansion wing include Gucci, Louis Vuitton, Hermes and Bloomingdale’s. Mitchell Gold + Bob Williams is scheduled to open in fall of 2016 to coincide with the grand opening of the new expansion.

“I have a long history with this center dating back to attending the opening of Bloomingdale’s when world-class merchant CEO Marvin Traub helicoptered in with Calvin Klein,” says Mitchell Gold. “So opening such a special store here is my nod to Mr. Traub and an expression of how thrilled we are to be in one of Simon’s premier properties.  Bob and I and our whole team are excited to move into our new neighborhood.”

“Simon made a great decision to invest in the expansion and open up new opportunities for world-class retailers,” says Ezra. “This is a premium location and a unique branding opportunity for Mitchell Gold + Bob Williams; the space also fit well with their existing portfolio of stores. Plus, the proximity to Philadelphia, the demographics of the market and the strong co-tenancy with other luxury fashion and home retailers made this a very compelling opportunity.”

Founded more than 25 years ago in rural North Carolina, Mitchell Gold + Bob Williams is an internationally acclaimed manufacturer and retailer of luxury home furnishings, including upholstery, casegoods, lighting, rugs, accessories and a carefully-edited collection of wall art.

Mitchell Gold + Bob Williams has more than 15 locations nationally, including space in Oakbrook, IL; Scottsdale, AZ; Kenwood, OH; and Glendale, CA.

Tuesday, September 1, 2015

PREIT Sells Mattress Warehouse in Lancaster

by Steve Lubetkin,
PREIT has sold the site of theMattress Warehouse property at 1831 Hempstead Roadin Lancaster, PA to a private investor, David Roeberg for an undisclosed amount.
Mattress Warehouse remains as the tenant, with 10 years remaining on its current lease.  Mattress Warehouse is located in a 6,000 square foot building as an outlot in a 1.84 acre shopping center.
“A property like this, with a strong-credit, corporate-owned retailer like Mattress Warehouse with a long-term lease in effect, was bound to attract significant interest. This site is adjacent to other strong national retailers, including Costco, Lowe’s, and Best Buy. Combined with its easy access and high visibility to the US-30 Bypass, the fundamentals for both the property and the region are strong.”
The Mattress Warehouse property is located at the corner of Hempstead Road and Pitney Road just off of Route 30. It is situated along a high-traffic retail corridor in Lancaster County. The company opened its first retail location in 1989 in Frederick, MD, and now has more than 180 stores throughout the east coast. 1831 Hempstead Road is one of the company’s newest locations.