Navy Yard, landlord Ensemble bullish on 'office resurgence'

 By Paul Schwedelson – Reporter, Philadelphia Business Journal

Mark Seltzer has worked on leasing office space at the Philadelphia Navy Yard since 2006 and he’s never been more optimistic.

2021, 2022 and 2024 were the Navy Yard’s three best years of office leasing in the past two decades, said Seltzer, Ensemble Investments' managing director. Of Ensemble’s 300,000-square-foot Navy Yard office portfolio, there’s only 2,800 square feet available today.

That will change in early 2026 when FS Investments moves to University City and vacates the entirety of 201 Rouse Blvd., an 80,000-square-foot building that was built in 2015. While Seltzer said he’s sad to see FS Investments move on, he's bullish about backfilling the space.

“The 80,000-square-foot block of space at the Navy Yard with the 201 Rouse building is by far the largest block of space and something that doesn’t exist today,” Seltzer said. “So we’re excited about the opportunity to bring another large user to the Navy Yard within the building.”

As news quietly spread of FS Investments’ move to Schuylkill Yards in recent months, Seltzer said Ensemble received inquiries from prospective tenants about the building at 201 Rouse Blvd. Since the move was first reported by the Business Journal on Monday, Ensemble has received more interest.

Though still in the early days of marketing the space, Seltzer believes there will be opportunities to backfill the space either with a single tenant like FS Investments or multiple tenants. If a new user wants to buy the building, Seltzer said he’s open to selling “for the right deal.”

“Given its impeccable condition and ongoing maintenance by both us and FS, it would be an ideal candidate for an 80,000-square-foot user to occupy the entire building,” Seltzer said. “It’s effectively plug and play.”

FS Investments' move largely came down to the ability to occupy a brand new building at 3025 John F. Kennedy Blvd. and being eligible for Keystone Opportunity Zone tax credits. Though Ensemble attempted to retain FS Investments, Seltzer said the relationship remained cordial. The Navy Yard is also in a Keystone Opportunity Zone, but FS Investments will extend its eligibility with the move.

Now in the market to fill the space, Seltzer touted 201 Rouse's high-end fitness center, conference center and café. The open floor plans that were considered a forward-thinking design 10 years ago are now popular among office tenants.

While much of the office demand in recent years came from tenants seeking 5,000 square feet to 20,000 square feet, Seltzer said he’s observed an uptick in larger users looking for space in the past six months.

Full story: http://tiny.cc/8zm9001

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