Monday, October 24, 2022

Comcast & Home Depot Put 500K SF Each of Office Space Across US Up for Sublease

By Jack Witthaus CoStar News

Media giant Comcast, rethinking its needs for physical offices, has added more sublease space to the growing inventory nationwide.

The Philadelphia-based parent of NBCUniversal and other entertainment companies has listed more than 500,000 square feet for sublease across the country. The company occupies more than 5 million square feet of office space in the U.S., according to CoStar data, and in August sent a memo to its 8,000 hometown employees saying they should return to its Philadelphia office towers three days a week as part of a hybrid work plan, according to the Philadelphia Inquirer.

"With increased remote and hybrid working, the facilities needs of our business have evolved, and our teammates are utilizing office space differently than in the past," a Comcast spokesperson told CoStar News in an email. "As part of our ongoing business operations, we regularly review our facilities footprint to ensure the space we’re using matches our business requirements and make adjustments at sites we own or lease as we continue to support our teammates who are both in-office and virtual."

The spokesperson did not respond to requests for confirmation of the amount of space the media company is marketing for sublease or where space is being listed for sublease. According to CoStar data, listings have appeared in at least five locations:

  • Roughly 154,000 square feet at 400 Commerce Drive in Newark, Delaware.
  • Roughly 134,000 square feet at 4690 N. Oracle Road in Tucson, Arizona.
  • Roughly 84,000 square feet at 10 River Park Plaza in Saint Paul, Minnesota.
  • Roughly 71,000 square feet at 3055 Comcast Place in Livermore, California.
  • Roughly 68,000 square feet at 1840 Victory Blvd. in Burbank, California.

At least one of the spaces marketed for sublease appears to be related to layoffs. Comcast earlier this month shut down its Burbank-based video game TV network G4, according to Deadline. Roughly $25 million had been invested into the livestream and broadcast studio space, according to a marketing flier. Comcast launched the channel in late fall 2021.

Comcast is the latest major company to put up office space for sublease as it reassesses needs in light of the adoption of hybrid work models. Earlier this month, Atlanta-based Home Depot listed more than 600,000 square feet for sublease in one of the largest sublease moves in recent weeks. Nationally, more than 197 million square feet of space is available for sublease, up 17.7% year over year.

First New Hotel Opens in Conshohocken in 22 Years

By Melannie Skinner CoStar Research

Keystone Development & Investment joined with North Carolina-based Concord Hospitality Enterprises to open Hotel West & Main, the first new hotel to be built in the developer's headquarters city of Conshohocken, Pennsylvania, in the last 22 years.

The 127-room boutique hotel operates as part of Hilton's Tapestry Collection and was the final piece in Keystone's $340 million Sora West mixed-use development. The project encompasses 520,000 square feet and includes an 11-story office tower housing AmerisourceBergen, Vertex and Hamilton Lane as major tenants, along with the adaptive reuse of a 148-year-old historic firehouse.

Construction on the hotel began during the height of the COVID-19 pandemic, which prompted Keystone and Concord to redesign plans to reduce the number of rooms and add a rooftop bar and lounge as well as meeting spaces equipped to handle remote conferencing.