Friday, April 24, 2015

Philadelphia Retail Vacancy Increases to 6.0%

The Philadelphia retail market did not experience much change in market conditions in the first quarter 2015.

The vacancy rate went from 5.8% in the previous quarter to 6.0% in the current quarter. Net absorption was negative 637,609 square feet, and vacant sublease space increased by 48,894 square feet. In fourth quarter 2014, net absorption was negative 62,004 square feet.

Tenants moving into large blocks of space in 2015 include: Under Armor moving into 16,348 square feet at 1529 Walnut St; AutoZone moving into 15,874 square feet at 200 S Best Ave; and La-Z-Boy Furniture moving into 14,800 square feet at 101 Ironlake Blvd.

Quoted rental rates decreased from fourth quarter 2014 levels, ending at $13.88 per square foot per year.

A total of 19 retail buildings with 138,704 square feet of retail space were delivered to the market in the quarter, with 696,250 square feet still under construction at the end of the quarter.

This trend is compared to the U.S. National Retail vacancy rate, which decreased to 6.0% from the previous quarter, with net absorption positive 15.41 million square feet in the first quarter. Average rental rates increased to $14.96, and 604 retail buildings delivered this quarter totaling almost 13.3 million square feet.

Thursday, April 23, 2015

Wilmington Office Trades for $61.8M

Medistar Corp. acquired the office building at 3 Beaver Valley Rd. in Wilmington, DE from a joint venture between KBS Realty Advisors and Gramercy Property Trust for $61.8 million, or about $233 per square foot.

Constructed in 1995, the five-story office building totals 265,503 square feet and is situated on 17.9 acres in the North New Castle County submarket of Philadelphia.

Construction Begins On Hamilton Crossings Shopping Center

by Steve Lubetkin,

The Goldenberg Group and TCH Development have begun construction of the Hamilton Crossings Shopping Center in Lower Macungie Township, Lehigh County, PA.  The 565,000-square-foot project–one of the largest open air shopping center developments in the country in recent years—will be anchored by Target, Costco Wholesale Club and Whole Foods, and will also include Dick’s Sporting Goods, Nordstrom Rack, Old Navy, Rally House, Five Below, Designer Shoe Warehouse (DSW), Pier 1 Imports and Ulta Cosmetics.  The Hamilton Crossings Shopping Center is scheduled to open in July of 2016.

The project comprises approximately 70 acres of commercial property between Hamilton Boulevard and the Route 222 Bypass at Krocks Road, with direct access to the shopping center from Route 222.  Hamilton Crossings also will have the first Costco and first Whole Foods in the Lehigh Valley. The project includes a number of public improvements, including significant regional roadway improvements, new technology in the form of adaptive traffic control signals and a regional storm water detention facility that will help address flooding conditions. The project will also include amenities such as bike and walking paths, public gathering areas and a connection to the historical log cabin site on the adjacent Wescosville Park.

Tim Harrison, owner of TCH Development, credited the concerted effort across all parties for bringing the Hamilton Crossings project to fruition.

"The project reflects years of teamwork and collaboration among Township planning, engineering and legal staff, the Commissioners, the Planning Commissioners, many different representatives of the Commonwealth of Pennsylvania, as well as countless constituent groups, neighbors and other stakeholders,” says Harrison.  “Hamilton Crossings is truly a shared vision that will become a uniquely positive asset for the Township and for Lehigh County for many years to come.”

The project’s developers also cited support of state Senator Pat Browne and state Representative Ryan Mackenzie as a critical factor in moving the project forward, as well and the participation of several key Commonwealth agencies, including the Department of Community and Economic Development, Commonwealth Finance Agency, PennDOT and the Pennsylvania Infrastructure Bank.  Financing for Hamilton Crossings was provided by lead bank M&T Bank, as well as Susquehanna Bank, National Penn Bank and Beneficial Bank.

“This project really represents an amazing achievement for everyone involved, both private and public,” says Jeremy Fogel, principal with The Goldenberg Group.  “We truly value all the relationships we’ve forged and now look forward to executing on our commitments so that Lower Macungie Township and Lehigh County ultimately view this project as the tremendous asset for the region that we all envisioned.”

Wednesday, April 22, 2015

Recent Deals Complete at the Triad Building in King of Prussia

Here is a list of recent tenants that moved in or renewed in the Triad Building in King of Prussia:

Telerx Marketing, Inc.
16,000 SF

Seasons Hospice & Palliative Care
5,000 SF

ASI Business Solutions
15,000 SF - renewal

Spring Mill Partners
3,000 SF

Communications Media, Inc.
10,000 SF - renewal
5,000 SF

Genomind, Inc.
9,000 SF

Comcast, Liberty buy land for what could be third Comcast Tower

by Jacob Adelman, Inquirer Staff Writer

For the first time, Comcast Corp. and Liberty Property Trust acknowledged Tuesday they were partnering on a third real estate deal in Center City, which some have speculated could be the site of another Comcast office tower.

The companies have jointly bought land at 19th and Arch Streets, diagonally across the street from where they are building the 59-story Comcast Innovation and Technology Center, company spokesman John Demming said.

Comcast and Liberty have no specific plans for the parcels, as the companies concentrate on developing the new tower, Demming said.

The new innovation center will be the tallest building in the country outside New York and Chicago. Liberty also developed the 58-floor Comcast Center near the new tower's construction site.

Demming's comments came after Liberty CEO William Hankowsky discussed the deal earlier in the day during an earnings call with analysts.

It was the first confirmation by the companies that they were cooperating on land purchases at 19th and Arch.

"People have asked about this in the past," Hankowsky said on the call. "We are acquiring some real estate at 19th and Arch. This is a great relationship and has yielded, I think for both parties, good real estate and good investments."

Liberty spokeswoman Jeanne Ackerly Leonard had no immediate details about the size of the plot being acquired or the number of properties that have been bought.

Hankowsky said during the call that Liberty had yet to make any announcement about how it intends to develop the parcels.

"There's nothing around the corner," he said.

Bill Luff, executive managing director for Colliers International's Philadelphia office, said there had been speculation among real estate watchers that Liberty was acquiring the properties at Comcast's behest, since the cable company could soon need more space even after filling out its first two towers.

"I can see the logic that there could be a third building," he said.

Why Is Real Estate a Safe Investment? (Video)

Presbyterian Pensions Board Renews Lease at 2000 Market

by Steve Lubetkin,
Rosemont Realty has renewed its lease with The Board of Pensions of the Presbyterian Church (USA) at 2000 Market Street, where the Board has been headquartered since 1996.

The 12-year, 76,998 square-foot lease renewal represents the third lease executed at 2000 Market Street in March. The three leases total 114,166 square feet, and include a 20,657 square foot lease by Aetna and 16,511 square feet secured by Shechtman Marks Devor PC.

“We’re honored that The Board of Pensions has renewed the lease for its headquarters at 2000 Market,” says Tina Renee McCall, senior vice president of asset management of Rosemont’s East region. “The building’s prominent location at the top of Market Street coupled with the class A office environment factored into their decision to renew.”

“We were pleased with Rosemont’s willingness to work with us to make it feasible for us to remain in this great location,” says Frank Spencer, president of The Board of Pensions.

2000 Market is a 29-story, 665,649 square foot class A office building located in the Market West submarket of Philadelphia’s Central Business District. The building is now 97 percent leased and its tenant roster includes Fox Rothschild LLP, Marshall Dennehey, and Zurich Insurance Group, Ltd., among others.