by John Jordan Globest.com
Amazon.com, Inc. has announced plans to build a more than 1-million-square-foot fulfillment center that will create more than 800 new full-time jobs in the Pittsburgh suburb of Findlay Township, PA.
“Pennsylvania is a great state for business and Amazon is excited to continue its growth and investment with our newest fulfillment center in Allegheny County,” said Alicia Boler Davis, vice president of global customer fulfillment for Seattle-based Amazon. “For nearly a decade, the Keystone state has been key to Amazon’s ability to serve our incredible customers and provide great selection and super-fast shipping speeds across the Northeast and Midwest regions of the U.S.”
Since 2010, the company has invested more than $8.5 billion in the state through its local fulfillment center and cloud infrastructure, research facilities and compensation to thousands of employees. The firm currently employs 10,000 workers across the state. The new fulfillment center will be Amazons 15th facility in the State of Pennsylvania.
“It’s a great win any time a business comes in and pledges to create 800 new jobs,” said Pennsylvania Gov. Tom Wolf. “This is a significant investment for Pennsylvania and I applaud Amazon for selecting our commonwealth as the location for this facility.”
The new facility will be constructed by the Hillwood Group of Dallas and Chapman Properties of Leetsdale, PA. Amazon has committed to investing more than $30 million into the project, state officials note.
Amazon received a funding proposal from the Department of Community and Economic Development for $1.6 million in Job Creation Tax Credits to be distributed after the creation of new jobs. The project was coordinated by the Governor’s Action Team, with additional coordination through the Pittsburgh Regional Alliance and Allegheny County.
“Today’s announcement underscores that Amazon has never taken its eyes off Pittsburgh. A new, from-the-ground-up fulfillment center will increase the count of several local Amazon facilities—including a growing engineering center—that provide, or will provide, thousands of well-paying jobs in the region,” says Pittsburgh Regional Alliance president Mark A. Thomas.
Allegheny County Executive Rich Fitzgerald adds. “Amazon’s decision also reflects their continued confidence in this county’s, this region’s and this state’s economy. The county, Port Authority and Airport Authority are proud to continue working with so many partners to show that this region is a good place to do business.”
Last week, Amazon announced plans to open two new robotics fulfillment centers in Ohio that will create more than 2,500 full-time jobs once operational and will total a combined 1.4 million square feet.
www.omegare.com
Wednesday, July 31, 2019
Co-Working Sector Fueling Growth in Philadelphia Office Market
by John Jordan Globest.com
Thanks to continued strong leasing activity by co-working operators, this business segment now represents more than 1 million square feet of office space here.
In the second quarter 2019 office market report for Philadelphia, reported that the co-working segment eclipsed the 1-million-square-foot mark in the second quarter. The brokerage firm also reports that another lease deal with a co-working firm involving multiple floors of a City Center office building is currently pending.
“The co-working phenomenon continues its positive momentum both in Philadelphia and markets across the United States. This disruptive industry has firmly established itself as an office solution for many corporations and we anticipate its growth trajectory to continue.”
Downtown Philadelphia was home to the most significant leasing activity of the second quarter in the Greater Philadelphia/Southern New Jersey region.
The EPA signed a 173,000-square-foot lease at Four Penn Center, a move from its current location at 1650 Arch St. in the second quarter. In addition to WeWork and Industrious’ new co-working deals at 1100 Ludlow St and Two Liberty Place, respectively, Children’s Hospital of Philadelphia signed on to take more than 50,000 square feet at the historic Wanamaker Building. Notable leases outside the CBD included Kreischer Miller’s renewal at 100 Witmer Rd. in Horsham and FXI’s new lease at 5 Radnor Corporate Center.
The vacancy rate for the Philadelphia CBD stood at 14.9% at the end of the second quarter. The region’s overall asking rent stood at $26.96-per-square-foot at the mid-point of 2019. Net absorption in the market was a negative 232,222 square feet.
During the second quarter, market fundamentals across the metropolitan area improved slightly. Occupancy gains in the CBD and Camden, NJ helped dampen the effects of Bank of America’s l exit from the Bracebridge buildings in Wilmington, which left more than 500,000 square feet of Class A space available.
Strong rent growth persisted in the CBD, where landlords asked 5.3% more for Class A space than they did this time last year. The premium for Class A space in Market West approached $7-per-square-foot per year compared to Class B space.
Reports also show that rents grew slightly in the suburbs and the outer submarkets, except for the Wilmington CBD where rates dipped in response to occupancy losses there. The overall vacancy rate in the CBD tightened by 30 basis points, reverting nearly back to where it stood at the end of 2018.
Vacancy across the suburban Pennsylvania markets generally grew, except for in the Main Line, where a flurry of leasing in Radnor caused vacancy to tighten by 410 basis points to 4.5%. The most noteworthy jump in vacancy occurred in Wilmington, where the previously mentioned Bank of America departure moved the rate to 26.6% at the end of the second quarter.
In the Philadelphia CBD there is currently approximately 1.3 million square feet of new office product under construction. With the recent delivery of the nearly 400,000-square-foot Triad 1828 Centre in Camden, NJ, the next major office product to open its doors will be Five City Center in Allentown, PA. The 300,000-square-foot mixed-use building is nearly 85% pre-leased to payroll services firm ADP.
Two major developments in the Philadelphia suburbs are currently under construction—AmeriHealth’s Caritas’ build-to-suit in Newtown Square and Amerisource Bergen’s build-to-suit in Conshohocken.
In terms of the region’s capital markets, Philadelphia rounded out the first half of 2019 with a relatively quiet quarter in the office investment sales sector. There were a few notable trades, including Buccini/Pollin Group’s purchase of Glenhardie Corporate Center in Wayne for roughly $120-per-square-foot and Apex Financial Advisors’ purchase of Lippincott Centre in Marlton.
Liberty Property Trust continued to divest from the office market, selling four more properties in Malvern. Despite these deals, sales volume for the second quarter in Philadelphia was the lowest since 2012. The report notes, however, that the four-quarter aggregate figure for the area indicates that office spaces, in recent quarters, remained above the 10-year average.
www.omegare.com
Thanks to continued strong leasing activity by co-working operators, this business segment now represents more than 1 million square feet of office space here.
In the second quarter 2019 office market report for Philadelphia, reported that the co-working segment eclipsed the 1-million-square-foot mark in the second quarter. The brokerage firm also reports that another lease deal with a co-working firm involving multiple floors of a City Center office building is currently pending.
“The co-working phenomenon continues its positive momentum both in Philadelphia and markets across the United States. This disruptive industry has firmly established itself as an office solution for many corporations and we anticipate its growth trajectory to continue.”
Downtown Philadelphia was home to the most significant leasing activity of the second quarter in the Greater Philadelphia/Southern New Jersey region.
The EPA signed a 173,000-square-foot lease at Four Penn Center, a move from its current location at 1650 Arch St. in the second quarter. In addition to WeWork and Industrious’ new co-working deals at 1100 Ludlow St and Two Liberty Place, respectively, Children’s Hospital of Philadelphia signed on to take more than 50,000 square feet at the historic Wanamaker Building. Notable leases outside the CBD included Kreischer Miller’s renewal at 100 Witmer Rd. in Horsham and FXI’s new lease at 5 Radnor Corporate Center.
The vacancy rate for the Philadelphia CBD stood at 14.9% at the end of the second quarter. The region’s overall asking rent stood at $26.96-per-square-foot at the mid-point of 2019. Net absorption in the market was a negative 232,222 square feet.
During the second quarter, market fundamentals across the metropolitan area improved slightly. Occupancy gains in the CBD and Camden, NJ helped dampen the effects of Bank of America’s l exit from the Bracebridge buildings in Wilmington, which left more than 500,000 square feet of Class A space available.
Strong rent growth persisted in the CBD, where landlords asked 5.3% more for Class A space than they did this time last year. The premium for Class A space in Market West approached $7-per-square-foot per year compared to Class B space.
Reports also show that rents grew slightly in the suburbs and the outer submarkets, except for the Wilmington CBD where rates dipped in response to occupancy losses there. The overall vacancy rate in the CBD tightened by 30 basis points, reverting nearly back to where it stood at the end of 2018.
Vacancy across the suburban Pennsylvania markets generally grew, except for in the Main Line, where a flurry of leasing in Radnor caused vacancy to tighten by 410 basis points to 4.5%. The most noteworthy jump in vacancy occurred in Wilmington, where the previously mentioned Bank of America departure moved the rate to 26.6% at the end of the second quarter.
In the Philadelphia CBD there is currently approximately 1.3 million square feet of new office product under construction. With the recent delivery of the nearly 400,000-square-foot Triad 1828 Centre in Camden, NJ, the next major office product to open its doors will be Five City Center in Allentown, PA. The 300,000-square-foot mixed-use building is nearly 85% pre-leased to payroll services firm ADP.
Two major developments in the Philadelphia suburbs are currently under construction—AmeriHealth’s Caritas’ build-to-suit in Newtown Square and Amerisource Bergen’s build-to-suit in Conshohocken.
In terms of the region’s capital markets, Philadelphia rounded out the first half of 2019 with a relatively quiet quarter in the office investment sales sector. There were a few notable trades, including Buccini/Pollin Group’s purchase of Glenhardie Corporate Center in Wayne for roughly $120-per-square-foot and Apex Financial Advisors’ purchase of Lippincott Centre in Marlton.
Liberty Property Trust continued to divest from the office market, selling four more properties in Malvern. Despite these deals, sales volume for the second quarter in Philadelphia was the lowest since 2012. The report notes, however, that the four-quarter aggregate figure for the area indicates that office spaces, in recent quarters, remained above the 10-year average.
www.omegare.com
Tuesday, July 30, 2019
Phoenixville Apartment complex sells for $78M
By Natalie Kostelni – Reporter, Philadelphia Business Journal
Pantzer Properties has paid $77.8 million for the Riverworks, a newly built 349-unit apartment complex in Phoenixville.
Toll Brothers Inc. (NYSE: TOL) developed the complex at 45 N. Main St. for around $66.5 million. Riverworks was one of the biggest apartment projects to get underway in Phoenixville in recent years and helped add to the vibrancy of the Chester County community that has experienced a resurgence.
While there are a smattering of other multifamily developments in Phoenixville, the other project on the scale of Riverworks was Phoenix Village. DeMutis Group, in a joint venture with Fox Cos., developed that two-building complex at 131 Bridge St. with 275 apartments and 20,000 square feet of retail.
Riverworks consists of six buildings as well as an 11,000-square-foot clubhouse with a resort-style pool, climbing wall, kayak storage and other amenities. It was completed in 2016 and it was 96 percent occupied and 99 percent leased time of sale.
Fully story: https://tinyurl.com/y3wck62e
www.omegare.com
Pantzer Properties has paid $77.8 million for the Riverworks, a newly built 349-unit apartment complex in Phoenixville.
Toll Brothers Inc. (NYSE: TOL) developed the complex at 45 N. Main St. for around $66.5 million. Riverworks was one of the biggest apartment projects to get underway in Phoenixville in recent years and helped add to the vibrancy of the Chester County community that has experienced a resurgence.
While there are a smattering of other multifamily developments in Phoenixville, the other project on the scale of Riverworks was Phoenix Village. DeMutis Group, in a joint venture with Fox Cos., developed that two-building complex at 131 Bridge St. with 275 apartments and 20,000 square feet of retail.
Riverworks consists of six buildings as well as an 11,000-square-foot clubhouse with a resort-style pool, climbing wall, kayak storage and other amenities. It was completed in 2016 and it was 96 percent occupied and 99 percent leased time of sale.
Fully story: https://tinyurl.com/y3wck62e
www.omegare.com
Apartment Rent Growth in Philadelphia's Conshohocken Submarket Surpasses 4% As New Development Remains at Bay
The Conshohocken/Plymouth Meeting apartment submarket has been in a sweet spot for local landlords since 2016. The submarket’s modern office stock and location, squarely between Philadelphia and the metro area’s wealthy western suburbs, have attracted relocations and expansions by major employers including KeyBank, Cotiviti and the National Comprehensive Cancer Network.
While new companies are moving in, rental demand is increasing. But projects including Roseland’s 51 Washington St., and MLP Ventures’ 433 Washington St. have encountered delays, and no large apartment projects have delivered in the Conshohocken/Plymouth Meeting submarket in more than three years.
The influx of white-collar employers, combined with minimal growth in the local apartment stock has kept apartment rents climbing. Annualized rent growth averaged 3.7% over the past 36 months and year-over-year growth rose to 4.5% at the end of July 2019.
There is only one project currently under construction throughout the entire submarket: Korman Communities’ 275-unit AVE Blue Bell, which will include a luxury hotel-like set of amenities and a large share of extended stay units.
The project is targeting completion by the summer of 2020, putting it on track to deliver just a few months before AmeriSourceBergen expands into its new Conshohocken headquarters at SORA West.
Other projects could break ground in the months ahead. MLP Ventures is currently working with Whitemarsh Township officials to receive the necessary permitting and variances to break ground on a 270-unit project at 601 Washington St.
Late last year, Morgan Properties purchased Millennium Corporate Center, a 197,000-square-foot office portfolio. The firm may seek to convert part of the property into apartments after AmeriSourceBergen vacates 70,000 square feet in 2020, when its new headquarters completes just two blocks away.
However, these projects are both at least 16 months from completing since neither has broken ground. This means apartment demand is likely to continue running ahead of supply in Conshohocken well into 2020.
While new companies are moving in, rental demand is increasing. But projects including Roseland’s 51 Washington St., and MLP Ventures’ 433 Washington St. have encountered delays, and no large apartment projects have delivered in the Conshohocken/Plymouth Meeting submarket in more than three years.
The influx of white-collar employers, combined with minimal growth in the local apartment stock has kept apartment rents climbing. Annualized rent growth averaged 3.7% over the past 36 months and year-over-year growth rose to 4.5% at the end of July 2019.
There is only one project currently under construction throughout the entire submarket: Korman Communities’ 275-unit AVE Blue Bell, which will include a luxury hotel-like set of amenities and a large share of extended stay units.
The project is targeting completion by the summer of 2020, putting it on track to deliver just a few months before AmeriSourceBergen expands into its new Conshohocken headquarters at SORA West.
Other projects could break ground in the months ahead. MLP Ventures is currently working with Whitemarsh Township officials to receive the necessary permitting and variances to break ground on a 270-unit project at 601 Washington St.
Late last year, Morgan Properties purchased Millennium Corporate Center, a 197,000-square-foot office portfolio. The firm may seek to convert part of the property into apartments after AmeriSourceBergen vacates 70,000 square feet in 2020, when its new headquarters completes just two blocks away.
However, these projects are both at least 16 months from completing since neither has broken ground. This means apartment demand is likely to continue running ahead of supply in Conshohocken well into 2020.
Brandywine to Build 100,000 SF Office Building in King of Prussia
by John Jordan Globest.com
Brandywine Realty Trust reports it demolition activities began this month on its project to redevelop 650 Park Ave. here into a new 100,000-square-foot office building.
The project is expected to be delivered in the fourth quarter of 2020. The development follows the highly successful ground up development of 933 1st Ave. for single tenant, GeoBlue, and the $29.7-million redevelopment of 500 N. Gulph, now home to CSL Behring.
The Philadelphia-based firm did not release development costs for the new project.
Brandywine Realty Trust has hired Coscia Moos Architecture, a Philadelphia-based architectural design firm, for the redevelopment of 650 Park Ave., which will transform the property into a four-story, versatile workplace with open floor plates and customizable layouts that can be tailored for single, or multi-tenant users.
“King of Prussia is among the most successful regional economic hubs in the nation,” says Jerry Sweeney, president and CEO of Brandywine Realty Trust. “650 Park Avenue boasts a premier location in the heart of King of Prussia, and to attract leading businesses and talent, we elected to reinvent the property to deliver a highly desirable asset that will rival the quality and appeal found in urban workplaces.”
Brandywine notes that four new corporate headquarters opened last year in King of Prussia, totaling 265,000 square feet of office space, while 3,000 new multifamily units have been delivered in the market between 2016-2018.
Among the planned amenities at the property include a number of open-air amenity spaces and communal work environments designed to promote team productivity, and individual wellness and leisure. A fourth-floor terrace will serve as a flexible activity space, ideal for a variety of events from morning yoga classes, to lunch meetings, and evening gatherings.
The second and third floors of the property will feature private balconies, while amenity space on the east side of the building will be designed to accommodate group lunches, meetings, and gatherings with easy access to a 2.6-mile First Avenue Linear Park and trail, a new public recreational amenity that Brandywine will help deliver in collaboration with Upper Merion Township and King of Prussia District. 650 Park Ave. will also be WELL and Fitwel certified.
“Brandywine’s new office building will be a wonderful addition of King of Prussia, and the design beautifully complements the First Avenue Linear Park project, which is transforming underutilized, private lawns into a cohesive, active and beautiful public amenity,” says Eric Goldstein, executive director of King of Prussia District. “Brandywine’s investments continue to foster substantial economic growth and elevate KOP’s prominence in this Philadelphia submarket.”
On July 22, Brandywine Realty Trust reported second quarter results that included its net operating income, excluding termination revenues and other income items decreased (1.7%) on a GAAP basis and increased 1.6% on a cash basis for its 75 same store properties, which were 93.0% and 92.8% occupied on June 30, 2019 and 2018, respectively.
The firm leased approximately 651,000 square feet and commenced occupancy on 316,000 square feet during the second quarter of 2019. The second quarter occupancy activity included 96,000 square feet of renewals, 140,000 square feet of new leases and 80,000 square feet of tenant expansions. The firm also reported it had an additional 482,000 square feet of executed new leasing scheduled to commence subsequent to June 30, 2019.
At June 30, 2019, the firm’s core portfolio of 92 properties comprising 16.4 million square feet was 93.0% occupied that were currently 95.9% leased (reflecting new leases commencing after June 30, 2019). Brandywine Realty Trust’s core focus is in the Philadelphia (New Jersey), Austin and Washington, D.C. markets.
“We have made excellent progress on our 2019 business plan,” Brandywine’s Sweeney stated when announcing the firm’s second quarter financials. “Market conditions remain strong and we are now 99% executed on our 2019 speculative revenue target. In addition, we are increasing several of our key leasing plan metrics, including our mark-to-market rents on both a GAAP and cash basis.”
He added that in Philadelphia the firm achieved a significant milestone by receiving zoning approval for its entire Schuylkill Yards development site in University City.
“With the Schuylkill Yards zoning approval, we can now move forward on our mixed-use development totaling more than 5 million square feet featuring office, resident and life science components.,” Sweeney noted.
www.omegare.com
Brandywine Realty Trust reports it demolition activities began this month on its project to redevelop 650 Park Ave. here into a new 100,000-square-foot office building.
The project is expected to be delivered in the fourth quarter of 2020. The development follows the highly successful ground up development of 933 1st Ave. for single tenant, GeoBlue, and the $29.7-million redevelopment of 500 N. Gulph, now home to CSL Behring.
The Philadelphia-based firm did not release development costs for the new project.
Brandywine Realty Trust has hired Coscia Moos Architecture, a Philadelphia-based architectural design firm, for the redevelopment of 650 Park Ave., which will transform the property into a four-story, versatile workplace with open floor plates and customizable layouts that can be tailored for single, or multi-tenant users.
“King of Prussia is among the most successful regional economic hubs in the nation,” says Jerry Sweeney, president and CEO of Brandywine Realty Trust. “650 Park Avenue boasts a premier location in the heart of King of Prussia, and to attract leading businesses and talent, we elected to reinvent the property to deliver a highly desirable asset that will rival the quality and appeal found in urban workplaces.”
Brandywine notes that four new corporate headquarters opened last year in King of Prussia, totaling 265,000 square feet of office space, while 3,000 new multifamily units have been delivered in the market between 2016-2018.
Among the planned amenities at the property include a number of open-air amenity spaces and communal work environments designed to promote team productivity, and individual wellness and leisure. A fourth-floor terrace will serve as a flexible activity space, ideal for a variety of events from morning yoga classes, to lunch meetings, and evening gatherings.
The second and third floors of the property will feature private balconies, while amenity space on the east side of the building will be designed to accommodate group lunches, meetings, and gatherings with easy access to a 2.6-mile First Avenue Linear Park and trail, a new public recreational amenity that Brandywine will help deliver in collaboration with Upper Merion Township and King of Prussia District. 650 Park Ave. will also be WELL and Fitwel certified.
“Brandywine’s new office building will be a wonderful addition of King of Prussia, and the design beautifully complements the First Avenue Linear Park project, which is transforming underutilized, private lawns into a cohesive, active and beautiful public amenity,” says Eric Goldstein, executive director of King of Prussia District. “Brandywine’s investments continue to foster substantial economic growth and elevate KOP’s prominence in this Philadelphia submarket.”
On July 22, Brandywine Realty Trust reported second quarter results that included its net operating income, excluding termination revenues and other income items decreased (1.7%) on a GAAP basis and increased 1.6% on a cash basis for its 75 same store properties, which were 93.0% and 92.8% occupied on June 30, 2019 and 2018, respectively.
The firm leased approximately 651,000 square feet and commenced occupancy on 316,000 square feet during the second quarter of 2019. The second quarter occupancy activity included 96,000 square feet of renewals, 140,000 square feet of new leases and 80,000 square feet of tenant expansions. The firm also reported it had an additional 482,000 square feet of executed new leasing scheduled to commence subsequent to June 30, 2019.
At June 30, 2019, the firm’s core portfolio of 92 properties comprising 16.4 million square feet was 93.0% occupied that were currently 95.9% leased (reflecting new leases commencing after June 30, 2019). Brandywine Realty Trust’s core focus is in the Philadelphia (New Jersey), Austin and Washington, D.C. markets.
“We have made excellent progress on our 2019 business plan,” Brandywine’s Sweeney stated when announcing the firm’s second quarter financials. “Market conditions remain strong and we are now 99% executed on our 2019 speculative revenue target. In addition, we are increasing several of our key leasing plan metrics, including our mark-to-market rents on both a GAAP and cash basis.”
He added that in Philadelphia the firm achieved a significant milestone by receiving zoning approval for its entire Schuylkill Yards development site in University City.
“With the Schuylkill Yards zoning approval, we can now move forward on our mixed-use development totaling more than 5 million square feet featuring office, resident and life science components.,” Sweeney noted.
www.omegare.com
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