Philly Office Market Sees a Slowdown

Philadelphia Office Market Sees Slowdown in Leasing Recovery

After a period of noteworthy leasing recovery since mid-2021, the Philadelphia office market has hit another setback.

Business decisions, and subsequently leasing momentum, have given way to inflationary measures and economic uncertainty in recent months. The past two quarters have recorded the lowest leasing levels since the height of the pandemic.

After recovering to 80% of pre-pandemic levels in 2021, the annual leasing volume fell to 70% recovery levels in 2022 due to a weak fourth quarter. 

This year is already off to a rocky start, and given current economic headwinds, performance is unlikely to keep up with the recent leasing recovery for the remainder of 2023.

*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.

Bank Collapse Triggers Office Downgrades

Alarms Ringing for Office Market, Bank Collapse Triggers Office Downgrade, Bank of America Bullish on Multifamily

Alarms Ringing for Office Market: When the loan on Philadelphia’s largest stand-alone office building at 1500 Market St. moved to special servicing in August, it didn’t register much alarm at the time, according to a new report by Morningstar Credit Information & Analytics. After all, the property’s performance metrics were significantly below underwritten expectations for a loan securitized in commercial mortgage-backed securities deal JPMCC 2020-MKST.

But then, a loan on Wells Fargo Center at 1700 Lincoln St. in Denver that’s included in CMBS deal MSC 2019-NUGS transferred to special servicing after the borrower decided against seeking an extension in January. And in another case, Brookfield DTLA disclosed it defaulted on loans for two downtown Los Angeles office towers rather than enact an extension option.

Now, capital markets are acutely aware that the office market is coming under new stresses.

*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.

Penn State Puts Two Philly Navy Yard Buildings For Sale

Philly Navy Yard Buildings For Sale

Penn State University has listed two Philadelphia Navy Yard buildings totaling 65,057 square feet for sale as the school relocates remaining offices at the locations elsewhere.

The buildings had been used for academic programming, research, startup incubator space and events. Those uses have already moved out while some administrative offices remain but will also eventually relocate. 

Penn State spokesperson Wyatt DuBois said the school is selling the properties because they have been underused. Penn State is still planning where the administrative offices will move, he said. 

The pair of two-story buildings for sale are at 4960 S. 12th St., also known as Building 661, and 1101 Kitty Hawk Ave., or Building 7R. The two buildings face each other with South 12th Street in between. League Island Park is just north of Building 7R and the Delaware River is two blocks to the south.They could be sold together or separately, said CBRE broker Robert Fahey, who has the listing. 

*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.

College of Physicians Acquires Historic Chestnut Street Property

College of Physicians acquires historic Chestnut Street property for $9.3M as it works to expand campus

A historic Center City institution has acquired two neighboring buildings in an effort to expand its educational programs and community services. 

The College of Physicians of Philadelphia, located at 19 S. 22nd St., purchased the nearby property at 2129 Chestnut St. for $9.275 million from Corporate Facilities Inc., a workspace designer and furniture manufacturer based out of Pennsauken, New Jersey. The sale was finalized within the last month, according to the nonprofit’s CEO Dr. Mira Irons. 

The property was designed in 1881 by Theophilus Parsons Chandler, the founder of the University of Pennsylvania’s School of Architecture, and was originally the Church of the New Jerusalem. It has 21,700 square feet of office space across two interconnected buildings. 

*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.

WCRE Completes 6,044 SF Office Lease on Market Street, Philadelphia

1700 Market Street, Philadelphia, PA

WCRE is proud to have exclusively represented Oscar Technology, in the leasing of 6044 square feet of office space located at 1700 Market Street, Philadelphia, Pennsylvania from 1700 Market Street Associates LLC, an affiliate of Shorenstein Realty Services, L.P.

Oscar Technology is an award-winning technology recruitment company. Oscar provides outstanding digital and technology recruitment services and have strong, long-standing relationships with their candidates and clients. Their employees know how to fill tech and digital roles, and who the best candidates are to fill them.  They offer an exceptional recruitment experience, for all candidates and clients, from start to finish.​ Oscar Technology is based in London, with offices in Manchester England, Amsterdam, Austin TX, Houston TX, and Philadelphia, PA. This geographical footprint provides the means to increase their database of candidates and clients daily.

1700 Market Street is a Class A thirty two story, 848,000 sq. ft. office building at 1700 Market Street in Philadelphia.  Built in 1970, 1700 Market has undergone renovations several times throughout its history, which has enabled the building to remain competitive and viable for top quality and prestigious companies to locate offices.  Shorenstein, its current owner, renovated the lobby and common areas over the past five years along with other essential upgrades.  Shorenstein also has added a state of the art amenity center on the 6th floor, which features a large conference training center, tenant only lounge, roof deck and first class fitness center. 1700 Market features the largest parking garage on Market Street with over 670 spaces.  1700 Market is home to numerous prestigious tenants such as; Deloitte, Reliance Standard Insurance, and AECOM.

Todd Monahan, Executive Vice President and Managing Director at WCRE exclusively represented the tenant in this transaction.

Alterra Property Group Market Street Deal Falls Through

Alterra Property Group Deal Falls Through

Alterra Property Group’s deal to buy the office building at 1701 Market St. from LXP Industrial Trust, with plans to convert it into apartments, has fallen through.

Philadelphia-based Alterra went under contract on the Center City property in the fall, Alterra Managing Partner Leo Addimando said. The company terminated the contract three weeks ago, said Addimando, citing rising development costs. 

The 305,170-square-foot, 18-story building has been the longtime Morgan Lewis & Bockius headquarters. The law firm is vacating the entire property and moving to a new 19-story building at 2222 Market St. in late summer or fall.

*Article courtesy of Philadelphia Business Journal

For more information about Philadelphia office space for sale or lease in Philadelphia or about any other Philadelphia 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 Philadelphia commercial real estate broker that provides a full range of Philadelphia commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Please visit our websites for a full listing of Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.

Completion Approaches in Center City Market Street

Office Philly YIMBY Completion

Philadelphia YIMBY’s recent site visit has observed that construction work is nearing completion at the 295-foot-tall, 19-story office development at 2222 Market Street in Center City West. Designed by Gensler and developed by the Parkway Corporation (alternately Parkway Commercial Properties), with IMC Construction as the contractor, the development will feature 329,100 square feet of tenant floor area, with 324,826 square feet of Class A office space and 4,274 square feet of retail, as well as a 47-car underground garage.

The structure is being built as the new headquarters for Morgan Lewis, a major law firm. Building features will include ten-foot-high ceilings, floor-to-ceiling windows, several landscaped outdoor decks, flexible workspace plans, a conference center, a fitness center, Zoom conference rooms, expanded areas for servicing out-of-office visitors, and rooms with advanced audio technology to facilitate virtual court hearings.

*Article courtesy of Philly YIMBY

For more information about Philadelphia office space for sale or lease in Philadelphia or about any other Philadelphia 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 Philadelphia commercial real estate broker that provides a full range of Philadelphia commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Please visit our websites for a full listing of Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.

4-Building Old City Portfolio on the Market, Including the Bourse

Offices Old City Hit the Market

MRP Realty is looking to sell its four-building Old City portfolio, a listing that comes seven years after the Washington, D.C., company acquired the properties and entered the Philadelphia office market. 

The buildings total 713,000 square feet and are collectively 52% occupied.

*Article courtesy Philadelphia Business Journal

For more information about Philadelphia office space for sale or lease in Philadelphia or about any other Philadelphia 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 Philadelphia commercial real estate broker that provides a full range of Philadelphia commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Please visit our websites for a full listing of Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.

BET Investments Purchases Ambler Office Building Lot Next to SEPTA

BET Investments Purchases Ambler Lot next to SEPTA

BET Investments Inc., known for mixed-use developments in the Philadelphia suburbs, has purchased an office building and adjacent parking lot in Ambler next to the SEPTA Regional Rail station.

Property records show the company paid $12.8 million for the two-story, 66,500-square-foot office building at 100 W. Butler Ave. and the parking lot across South Maple Street next to the train station.

The approximately 3.5 acres sit in a prime spot for redevelopment, but for now, BET Investments President Michael Markman is comfortable with the building’s two occupants, Hatch LTK and Precis Engineering, both engineering firms with long-term leases.

*Article courtesy of Philadelphia Business Journal

For more information about Philadelphia office space for sale or lease in Philadelphia or about any other Philadelphia 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 Philadelphia commercial real estate broker that provides a full range of Philadelphia commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Please visit our websites for a full listing of Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.

Ensemble Investments Purchases Two Wayne Office Buildings

Ensemble Buys Wayne Offices

Ensemble Investments LLC is expanding its local reach outside of the Philadelphia Navy Yard, buying two top-tier office buildings in Wayne totaling 204,000 square feet. 

The Long Beach, California, real estate firm purchased 650 and 680 E. Swedesford Road from Prologis Inc. The latter picked up the buildings in its $13 billion acquisition of Liberty Property Trustin 2020. 

Ensemble Investments did not disclose how much it paid for the buildings. 

*Article courtesy of Philadelphia Business Journal

For more information about Philadelphia office space for sale or lease in Philadelphia or about any other Philadelphia 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 Philadelphia commercial real estate broker that provides a full range of Philadelphia commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Please visit our websites for a full listing of Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.