New York Firm Takes Steps to Acquire Wanamaker Building

Wanamaker Building Acquired in Center City
After acquiring a significant portion of the debt on the historic Wanamaker building, TF Cornerstone is now attempting to take control of the Center City office space from its owner, Rubenstein Partners. With the New York-based developer now in possession of the loan, the foreclosure situation has changed. Instead of being managed by a commercial mortgage-backed securities (CMBS) trust focused on generating investor returns, the debt is now owned by a developer who may see greater potential in obtaining the building’s office floors.TF Cornerstone already holds ownership of the Wanamaker’s 435,000-square-foot retail space, including Macy’s, which it acquired for $40 million in 2019. The remaining 954,363 square feet—consisting of office space from floors 4 through 12, along with a 660-space underground parking garage—remains under Rubenstein’s ownership and serves as collateral for the firm’s $124 million mortgage.

Located at 1300 Market St., across from City Hall, the Wanamaker building highlights the struggles facing Philadelphia’s office market, which have worsened with the rise of remote and hybrid work models following the Covid-19 pandemic. The building was placed under receivership in September 2023, and its office occupancy has sharply declined from 96% in 2020 to just 23%, based on CMBS and receiver data.

*Article courtesy of Philadelphia Business Journal

For more information about Philadelphia office space for sale or lease or about any other properties for sale or lease, please contact WCRE at 215-799-6900.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier commercial real estate broker that provides a full range of commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other commercial properties for buyers, tenants, investors and sellers.

Please visit our websites for a full listing of Philadelphia commercial properties for lease or sale, www.wolfcre.com.

High Philly Office Rents May Be Covering

What higher office rents in Philadelphia may be concealing

The asking office rents in Philadelphia have remained resilient and even increased in recent years. However, effective rents, which account for inflation and concessions, paint a more complex picture. As a result, asking rents are no longer as reliable an indicator of occupancy costs and office market performance as they once were.

From 2010 to 2019, annual asking office rents in Philadelphia grew by an average of 1.6%, closely tracking the national inflation rate of 1.7%. But in recent years, inflationary pressures combined with reduced office demand have driven effective rent growth into negative territory.

For example, in the third quarter of 2024, average office asking rents rose by 0.4%. However, after adjusting for inflation, the average effective rent declined by 3%. When factoring in concessions and other incentives, the decline becomes even steeper.

*Article courtesy of Costar

For more information about Philadelphia office space for sale or lease or about any other properties for sale or lease, please contact WCRE at 215-799-6900.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier commercial real estate broker that provides a full range of commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other commercial properties for buyers, tenants, investors and sellers.

Please visit our websites for a full listing of Philadelphia commercial properties for lease or sale, www.wolfcre.com.

New Details on Conversion Plans for the Bourse and 400 Market St.

New Details on Conversion Plans for the Bourse and 400 Market St.
Two months after acquiring the Bourse building and 400 Market St., developers Lubert-Adler Real Estate Funds and Keystone Development and Investment are moving forward with conversion plans. Initially undecided between apartments or a hotel for the 173,700-square-foot building at 400 Market St., a zoning permit issued on August 29 now allows for 176 residential units, indicating a multifamily direction. The permit outlines a residential lobby on the first floor and units on floors 2 through 12, while the building currently remains mostly vacant office space.
*Article courtesy of Philadelphia Business Journal
For more information about Philadelphia office space for sale or lease or about any other properties for sale or lease, please contact WCRE at 215-799-6900.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier commercial real estate broker that provides a full range of commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other commercial properties for buyers, tenants, investors and sellers.

Please visit our websites for a full listing of Philadelphia commercial properties for lease or sale, www.wolfcre.com.

Ben Franklin Technology Partners Lists Longtime Navy Yard Building for Sale

Ben Franklin Technology Partners puts longtime Navy Yard building up for sale, eyes move
Ben Franklin Technology Partners of Southeastern Pennsylvania has listed its longtime headquarters in the Philadelphia Navy Yard for sale and plans to relocate.
The organization currently occupies about 12,000 square feet of the 30,000-square-foot building at 4801 S. Broad St., known as Building 100, with the remaining space leased to other tenants.
While the asking price has not been disclosed, the building, originally a Marine Corps barracks from the early 20th century, has an assessed value of $5.4 million, according to Philadelphia tax records.
*Article courtesy of Philadelphia Business Journal
For more information about Philadelphia office space for sale or lease or about any other properties for sale or lease, please contact WCRE at 215-799-6900.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier commercial real estate broker that provides a full range of commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other commercial properties for buyers, tenants, investors and sellers.

Please visit our websites for a full listing of Philadelphia commercial properties for lease or sale, www.wolfcre.com.

Center City Remains Philadelphia’s Office Hub

Center City Remains Philadelphia's Office Hub
Despite concerns about Philadelphia’s downtown office market, Center City’s Market Street West remains a key leasing destination, leading the region. In the first half of 2024, it secured 548,000 square feet in new leases.
Notable deals include Clark Capital’s 37,500-square-foot lease at One Liberty Place and Ballinger’s 46,500-square-foot lease at 1650 Arch St. Several law firms, including Saul Ewing and Dilworth Paxson, also signed significant leases.
Although leasing activity was down 30% from the 2015-2019 average, Market Street West still outpaced the rest of the region.
*Article courtesy of Costar
For more information about Philadelphia office space for sale or lease or about any other properties for sale or lease, please contact WCRE at 215-799-6900.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier commercial real estate broker that provides a full range of commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other commercial properties for buyers, tenants, investors and sellers.

Please visit our websites for a full listing of Philadelphia commercial properties for lease or sale, www.wolfcre.com.

Philadelphia Office Values Drop 6%, With More Losses Possible

Philadelphia Office Values Drop 6%, With More Losses Possible

After a citywide revaluation, the assessed value of Philadelphia office buildings fell by nearly 6%. The City of Philadelphia expects this decline to deepen as property owners appeal their assessments. The 2025 property assessments, released this week, show a $635 million drop in taxable value, bringing total office valuations to about $10.73 billion, down from $11.37 billion in 2024. While the decrease is less than the $1 billion drop projected in Mayor Cherelle Parker’s earlier budget, city officials still anticipate reaching that figure due to expected losses from appeals.

*Article courtesy of Philadelphia Business Journal

For more information about Philadelphia office space for sale or lease or about any other properties for sale or lease, please contact WCRE at 215-799-6900.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier commercial real estate broker that provides a full range of commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other commercial properties for buyers, tenants, investors and sellers.

Please visit our websites for a full listing of Philadelphia commercial properties for lease or sale, www.wolfcre.com.

Why Philadelphia’s Office Market Is Brightening

Why Philadelphia’s Office Market Is Brightening

To an outsider, Philadelphia’s office’s use of statistics might suggest it should be one of the hardest-hit cities, struggling with reduced foot traffic and empty buildings. However, the City of Brotherly Love is thriving, offering a model for other urban office markets facing high vacancy rates and quiet downtowns as they recover from the pandemic. On a recent 95-degree day in the central business district, men in loosened ties lined up at falafel, smoothie, and other food carts on Center City sidewalks. Employees on their lunch breaks filled Rittenhouse Square benches, enjoying the shade of the park’s towering trees. By rush hour, streets were packed with cars, buses, and bicyclists, all vying for space in the bustling traffic.

*Article courtesy of Costar

For more information about Philadelphia office space for sale or lease or about any other properties for sale or lease, please contact WCRE at 215-799-6900.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier commercial real estate broker that provides a full range of commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other commercial properties for buyers, tenants, investors and sellers.

Please visit our websites for a full listing of Philadelphia commercial properties for lease or sale, www.wolfcre.com.

Old City Office Building Set to Change Hands Amid Selloff

Old City Office Building Set to Change Hands Amid Selloff
A New York real estate investment firm is in talks to sell two more Old City properties after recently unloading nearby buildings. KKR Real Estate Finance Trust Inc. (NYSE: KREF) plans to sell the 209,700-square-foot office building at 325 Chestnut St. and the 469-spot Bourse parking garage at 400 Ranstead St. The firm recently sold the Bourse building and 400 Market St. to Lubert-Adler Real Estate Funds and Keystone Development for $41 million. KREF, a subsidiary of KKR, acquired the four Old City buildings in December via a deed in lieu of foreclosure from MRP Realty.
*Article courtesy of Philadelphia Business Journal

For more information about Philadelphia office space for sale or lease or about any other properties for sale or lease, please contact WCRE at 215-799-6900.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier commercial real estate broker that provides a full range of commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other commercial properties for buyers, tenants, investors and sellers.

Please visit our websites for a full listing of Philadelphia commercial properties for lease or sale, www.wolfcre.com.

Nonprofit Signs Significant Office Lease in Philadelphia

Nonprofit Signs Significant Office Lease in Philadelphia
A Philadelphia nonprofit has chosen to extend and enlarge its lease, standing out as one of the noteworthy office deals in the city this year. This decision reflects a growing trend among tenants to invest in larger office spaces. The Defender Association of Philadelphia, which provides legal assistance to underprivileged criminal defendants, has confirmed its dedication to roughly 117,000 square feet at the Packard Building in Center City, Philadelphia. The lease renewal at 1441 Sansom St. also includes integrating about 21,000 square feet of former storage space to accommodate the nonprofit’s expansion within the 26-story central business district tower.
*Article courtesy of Costar

For more information about Philadelphia office space for sale or lease or about any other properties for sale or lease, please contact WCRE at 215-799-6900.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier commercial real estate broker that provides a full range of commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other commercial properties for buyers, tenants, investors and sellers.

Please visit our websites for a full listing of Philadelphia commercial properties for lease or sale, www.wolfcre.com.

Developer Buys Building at a Major Markdown

Developer Buys Building at a Major Markdown
The sale of the Bourse building and 400 Market St. in Old City has closed at a combined price of $41 million, according to industry sources. Philadelphia developers Lubert-Adler Real Estate Funds and Keystone Development and Investment paid $31 million for the 129-year-old Bourse building at 111 S. Independence Mall East and $10 million for the largely vacant office building at 400 Market, sources said.
*Article courtesy of Philadelphia Business Journal

For more information about Philadelphia office space for sale or lease or about any other properties for sale or lease, please contact WCRE at 215-799-6900.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier  commercial real estate broker that provides a full range of commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other commercial properties for buyers, tenants, investors and sellers.

Please visit our websites for a full listing of Philadelphia commercial properties for lease or sale, www.wolfcre.com.