Philadelphia’s office market reflects a tale of two cities, showcasing pre-existing challenges and those emerging post-pandemic. For over a decade, the Philadelphia suburbs have struggled with high office availability rates, significantly exceeding historical averages. This surplus of office space has become the norm for suburban areas. Conversely, the abundance of available office space in the… Read more »
The iconic office property at Philadelphia Navy Yard is slated for a sheriff’s sale in June. Originally praised for revolutionizing workspaces when constructed for GlaxoSmithKline over a decade ago, the building at 5 Crescent Drive is now entangled in foreclosure proceedings due to the owner’s outstanding $85 million mortgage debt. *Article courtesy of Philadelphia Business… Read more »
Philadelphia officials anticipate a substantial decrease of approximately $1 billion in the total assessed value of office buildings throughout the city, attributed to financial challenges faced by property owners and escalating vacancy rates. Finance Director Rob Dubow highlighted the necessity of accounting for these declining valuations in Mayor Cherelle Parker’s proposed budget for fiscal year… Read more »
In late December, a lender assumed control of a four-building Philadelphia office portfolio, and discussions are underway for the potential sale of two of the properties. KKR Real Estate Finance Trust Inc. (NYSE: KREF), a subsidiary of New York-based alternative investment firm KKR, disclosed in its quarterly earnings filing with the Securities and Exchange Commission… Read more »
Frontier Development & Hospitality Group aims for “really prominent” food and beverage partners and a four-star designation for its redevelopment of the former Family Court building into a 215-key hotel, according to Managing Principal Evens Charles. The 247,196-square-foot structure at 1801 Vine St. is part of a broader development plan along the Benjamin Franklin Parkway…. Read more »
Philadelphia City Hall, with its iconic oversized William Penn statue, symbolizes the city. The SEPTA station beneath connects the transit network, and Dilworth Park’s family-friendly attractions are popular among tourists and locals alike. However, the offices adjacent to this beloved Second Empire structure face significant challenges. Data reveals that among the six private-sector office buildings… Read more »
The personal injury law firm, Raynes & Lawn, is bidding farewell to its 55-year home on Rittenhouse Square, opting to transition into space at 2400 Market St. currently occupied by Lubert-Adler, as the latter relocates its headquarters to The Battery in Fishtown. The move is scheduled for April 1. Raynes & Lawn will initially occupy… Read more »
Amidst a slowdown in the office sales market, a boutique property in Philadelphia’s central business district is available for sale at a likely discounted price. The 15-story, 133,353-square-foot office building at 1760 Market St. is listed by owner Victor F. Keen, a retired tax attorney. While the listing lacks a specific price, industry estimates suggest… Read more »
Stradley Ronon Stevens & Young has exercised a lease option to relinquish one of the four floors it occupied at its long-standing headquarters in One Commerce Square. Effective January 1, the law firm downsized its space at the 2005 Market St. office building by 25%, reducing it from 92,000 square feet to 69,111. Co-Chairman Kevin… Read more »
The owners of Centre Square have successfully negotiated with the city to reduce the property tax assessment on the challenged office complex by $113 million for the current year, while the two-building site remains in receivership with declining occupancy levels. The assessed value of this Center City property, initially set at $362.6 million, will undergo… Read more »
