"Ferguson subsidiary Lyon Conklin & Co. Inc, a wholesale distributor of HVAC equipment and services to many local contractors in the Greater West Chester area and the entire East Coast, will occupy the space. Lyon Conklin was recently selected to be the new American Standard Heating and Air Conditioning distributor throughout Eastern Pennsylvania and Southern New Jersey. The territory expansion is further evidence of Lyon Conklin's strength in the HVAC market.
"Ferguson realizes the tremendous value of the demographics in West Chester and Chester County, PA" said Manager of Real Estate Development for Ferguson."
Sunday, May 9, 2010
South Broad vacancies rise high
"For years, South Broad Street has been a highly desirable office submarket in Center City and consistently experienced some of the lowest vacancy rates in town as tenants clamored to set up shop along the Avenue of Arts.
But no more.
The submarket has one of the highest vacancy rates —16.2 percent at the end of first quarter — in Philadelphia and is higher than the 13.7 percent overall vacancy rate of the Central Business District. At the end of last year, the vacancy was 14.3 percent. The empty space is in stark contrast to its past, when the 2.5-million-square-foot submarket had vacancies below 5 percent.
“Everything was so tight there. There wasn’t a lot of flexibility,”
Companies wanted to be close to the hubbub of the theaters, restaurants and shops. “Traditionally it has been a tight market and hard to find space,”
The return of the high vacancy rate harks back to a time 20 years ago when tenants used to veer from South Broad. Then, the submarket was all but dead as tenants abandoned older buildings for fancy new ones along West Market Street.
That’s a dynamic at work again today.
“It’s a flight to quality,” Smith said. “People who are in A-minus, B-plus buildings move up to an A building and pay the same rent. Typically, this happens to South Broad and Walnut in every recession.”
Much of the vacancy dragging down South Broad can be attributed to a single building — the Atlantic Building at 260 S. Broad St. The other buildings that make up the market, including the Bellevue, 230 S. Broad, 1 South Broad, and Land Title, are nearly fully occupied.
“There’s always one or two buildings that are down on their luck in the city,” said SSH Real Estate, which owns 123 S. Broad St., one of the seven main buildings that comprise the market. “Last quarter it was 1650 Arch St.”
Historically, the 21-story, 325,000-square-foot structure has been fully occupied for as long as it has been around.
The Atlantic was constructed in 1923.
“We’re competing with Market Street whereas we didn’t have to before."
Three big tenants defected from the Atlantic Building, leaving it 48 percent unoccupied over 10 floors. Klehr Harrison moved to 1835 Market St. DMJM Aviation and Family Planning Council relocated to 1700 Market.
“It will come back,” he said, noting that rents will need to be adjusted downward to entice tenants coming out of B and C class buildings. “It’s a very natural progression. Then the C buildings either adjust their rents again or change as a conversion.”
But no more.
The submarket has one of the highest vacancy rates —16.2 percent at the end of first quarter — in Philadelphia and is higher than the 13.7 percent overall vacancy rate of the Central Business District. At the end of last year, the vacancy was 14.3 percent. The empty space is in stark contrast to its past, when the 2.5-million-square-foot submarket had vacancies below 5 percent.
“Everything was so tight there. There wasn’t a lot of flexibility,”
Companies wanted to be close to the hubbub of the theaters, restaurants and shops. “Traditionally it has been a tight market and hard to find space,”
The return of the high vacancy rate harks back to a time 20 years ago when tenants used to veer from South Broad. Then, the submarket was all but dead as tenants abandoned older buildings for fancy new ones along West Market Street.
That’s a dynamic at work again today.
“It’s a flight to quality,” Smith said. “People who are in A-minus, B-plus buildings move up to an A building and pay the same rent. Typically, this happens to South Broad and Walnut in every recession.”
Much of the vacancy dragging down South Broad can be attributed to a single building — the Atlantic Building at 260 S. Broad St. The other buildings that make up the market, including the Bellevue, 230 S. Broad, 1 South Broad, and Land Title, are nearly fully occupied.
“There’s always one or two buildings that are down on their luck in the city,” said SSH Real Estate, which owns 123 S. Broad St., one of the seven main buildings that comprise the market. “Last quarter it was 1650 Arch St.”
Historically, the 21-story, 325,000-square-foot structure has been fully occupied for as long as it has been around.
The Atlantic was constructed in 1923.
“We’re competing with Market Street whereas we didn’t have to before."
Three big tenants defected from the Atlantic Building, leaving it 48 percent unoccupied over 10 floors. Klehr Harrison moved to 1835 Market St. DMJM Aviation and Family Planning Council relocated to 1700 Market.
“It will come back,” he said, noting that rents will need to be adjusted downward to entice tenants coming out of B and C class buildings. “It’s a very natural progression. Then the C buildings either adjust their rents again or change as a conversion.”
Monday, May 3, 2010
Great Valley Corporate Center signs 60,000 square feet in leases
"PhaseBio Pharmaceuticals Inc., which is relocating from Research Triangle, N.C., is among the leases arranged during the first quarter at the Great Valley Corporate Center in Malvern.
PhaseBio leased 15,881 square feet at 1 Great Valley Parkway. In all, 60,502 square feet of leases were signed during the quarter at the corporate center, which is owned by Liberty Property Trust (NYSE:LRY). Other leases include: Mangos, an advertising firm, renewed a long-term lease for 13,023 square feet at 10 Great Valley Parkway; Performance Development Group signed a lease at 5 Great Valley Parkway for 6,257 square feet; VEECO, a nanotechnology company, signed a new lease for 3,500 square feet at 7 Great Valley Parkway; Y-Prime Technologies, a consultant to pharmaceutical companies, signed a new lease for 3,330 square feet at 7 Great Valley Parkway; Shifa Biomedical Group leased 2,983 square feet at 1 Great Valley Parkway; Cutanea Life Sciences took 3,330 square feet; and Integrated Software Solutions renewed 1,546 square feet at 5 Great Valley Parkway."
PhaseBio leased 15,881 square feet at 1 Great Valley Parkway. In all, 60,502 square feet of leases were signed during the quarter at the corporate center, which is owned by Liberty Property Trust (NYSE:LRY). Other leases include: Mangos, an advertising firm, renewed a long-term lease for 13,023 square feet at 10 Great Valley Parkway; Performance Development Group signed a lease at 5 Great Valley Parkway for 6,257 square feet; VEECO, a nanotechnology company, signed a new lease for 3,500 square feet at 7 Great Valley Parkway; Y-Prime Technologies, a consultant to pharmaceutical companies, signed a new lease for 3,330 square feet at 7 Great Valley Parkway; Shifa Biomedical Group leased 2,983 square feet at 1 Great Valley Parkway; Cutanea Life Sciences took 3,330 square feet; and Integrated Software Solutions renewed 1,546 square feet at 5 Great Valley Parkway."
PMC Property Group Inc. Leases up 17,500 sqft at 1608 Walnut St.
"Delaware Valley Association for the Education of Young Children, a provider of early childhood educational services, leased 7,717 SF of office space, while law firms Steel Doebley & Glassman P.C., and Rudnick & Spector, P.C., leased 5,533 SF and 4,257 SF of office space, respectively.
Built in 1929, the historic 1608 Walnut St. is part of downtown Philadelphia's main retail area and theater district and features excellent access to public transportation, with the PATCO station one block away from the property and Regional Rail and the subway just three blocks away. The 220,000-SF, 19-story Class B office building features on-site property management and a staffed lobby during business hours. Approximately 48,000 SF is currently available for lease."
Built in 1929, the historic 1608 Walnut St. is part of downtown Philadelphia's main retail area and theater district and features excellent access to public transportation, with the PATCO station one block away from the property and Regional Rail and the subway just three blocks away. The 220,000-SF, 19-story Class B office building features on-site property management and a staffed lobby during business hours. Approximately 48,000 SF is currently available for lease."
Publicis to be First Tenant in New LEED Bldg.
"Publicis Touchpoint Solutions, a part of the Publicis Health Communications Group, signed a long-term lease for 55,800 square feet at 1000 Floral Blvd. in Yardley, PA. The company will be the first tenant to occupy the new building.
The 87,000-square-foot, office building completed construction in October of last year in the South Campus of the Lower Makefield Corporate Center. It achieved LEED Gold certification.
Three subsidiaries of Publicis Health Communications Group will be consolidating and relocating from suburban parts of Pennsylvania and New Jersey, starting in July."
The 87,000-square-foot, office building completed construction in October of last year in the South Campus of the Lower Makefield Corporate Center. It achieved LEED Gold certification.
Three subsidiaries of Publicis Health Communications Group will be consolidating and relocating from suburban parts of Pennsylvania and New Jersey, starting in July."
Citadel Federal Credit Union Buys Office Bldg. in Exton
"Citadel Federal Credit Union acquired the office building at 520 Eagleview Blvd. in Exton, PA, for $13 million, or about $155 per square foot, from Pitcairn Properties.
Located in the Eagleview Corporate Center, the three-story, 84,000-square-foot building was constructed in 1993 on 9.4 acres.
Citadel plans to move-in by mid-fourth quarter this year."
Located in the Eagleview Corporate Center, the three-story, 84,000-square-foot building was constructed in 1993 on 9.4 acres.
Citadel plans to move-in by mid-fourth quarter this year."
Metro Air Services Leases 39,420 SF in Folcroft
"Metro Air Services, signed a two-year lease for 39,420 square feet in the Kaiser Business Center Building A in Folcroft PA.
The 127,223-square-foot warehouse building at 519 Kaiser Drive was constructed in 1971 and sits on 9.7 acres. The building is located within the Folcroft West Business Park."
The 127,223-square-foot warehouse building at 519 Kaiser Drive was constructed in 1971 and sits on 9.7 acres. The building is located within the Folcroft West Business Park."
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