Stradley Ronon Gives Back Office Space at One Commmerce

Stradley Ronon gives back 25% of its office space at One Commerce Square

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 Boyle explained that when the firm extended its lease to stay at One Commerce in late 2014, it included an option to return one floor to landlord Brandywine Realty Trust in the current year. Stradley Ronon chose to give back the 24th floor while retaining floors 25, 26, and 27.

This move aligns with a broader trend that has gained momentum over the past year or two, wherein businesses are downsizing office spaces in response to the shift to hybrid work arrangements during the Covid-19 pandemic. This strategic decision not only reflects evolving work dynamics but also presents an opportunity for cost savings on rent.

*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.

Centre Square Negotiates Decrease in Property Tax Assessment

Centre Square negotiates $113M decrease in property tax assessment amid receivership

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 revisions for both the 2023 and 2024 tax years. The Board of Revision of Taxes for the city has granted approval for a 33% reduction in Centre Square’s property tax assessment to $250 million for 2024 and a 24% drop to $275 million for 2023.

At Philadelphia’s property tax rate, Centre Square’s owners, Nightingale Properties and Wafra Capital Partners, are now obligated to pay approximately $3.85 million in property taxes for 2023 and $3.5 million for 2024. This marks a reduction from the $5.1 million in taxes that would have been owed in each of the two years had the assessment remained unchanged. The adjusted figures result in a combined savings of over $2.8 million for the property owners.

*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.

Dow Signs Largest Philly Office Lease

Dow Signs What May Be Philadelphia Market’s Largest Office Lease in More Than a Decade

David Werner Real Estate Investments has recently inked a substantial, long-term lease extension encompassing 800,000 square feet with Dow at its life sciences and office campus in Collegeville, Pennsylvania. This transaction stands out as one of the largest leases executed in the region in over a decade.

Notably, it marks the most extensive office lease completed in the Philadelphia market within the last 13 years, as per CoStar data. This deal surpasses the previous record set when David Werner and partner GreenBarn Investment Group finalized a $180 million sale-leaseback with a Pfizer subsidiary for the same two-building campus last summer.

The extended lease covers the Northeast Dow Center located at 400 Arcola Road, a significant research and development hub for Dow. Financing for the acquisition of the Arcola Corporate Campus, a Class-A mixed-use office and lab campus spanning 1.9 million square feet, was facilitated through a $95 million loan co-funded by the Bank of Montreal and Starwood Mortgage Capital. The five-year loan was bundled into two commercial mortgage-backed securities offerings last year.

*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.

1818 Market Street Nears Default as Owner Seeks Loan Renegotiation

1818 Market Street faces 'imminent' default as Center City office building's owner seeks to renegotiate $223M loan

The owner of 1818 Market St. is actively pursuing a renegotiation of the terms for a $223 million loan tied to the Center City property, just shy of two months before its March 9 maturity date. Originated by Barclays in 2021, the debt was subsequently sold to investors as commercial mortgage-backed securities (CMBS). San Francisco-based Shorenstein Properties, facing an imminent monetary default, submitted a loan modification proposal in December. This move followed the transfer of the loan to special servicer Rialto Capital, as detailed in the latest CMBS report.

Shorenstein acquired 1818 Market, previously known as Beneficial Place, from Sovereign Capital Management Group for nearly $185 million in 2015. The building was later renamed WSFS Bank Place in 2019 after WSFS acquired Beneficial Bank, becoming the 37-story office building’s largest tenant.

*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.

Wanamaker building owner eyes residential shift amid 35% office occupancy

Center City Office Building for Sale with Conversion Potential

The owner of the iconic Wanamaker building contemplates transforming its office space into residential units due to ongoing tenant departures. Since the 112-year-old property entered receivership in September, Rubenstein Partners has been steering the future of this 1.4 million-square-foot site.

In a statement to the Philadelphia Business Journal, Rubenstein acknowledged the challenges within Philadelphia’s central business district and emphasized their commitment to finding a favorable direction while exploring alternatives for the office segment within the historic Wanamaker building.

*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.

CHOP Extends King of Prussia Expansion with Acquisition of $24.5M Office Building

CHOP continues King of Prussia expansion with $24.5M office building purchase

Expanding its presence in King of Prussia, the Children’s Hospital of Philadelphia has acquired a 97,290-square-foot office building located at 460 N. Gulph Road for $24.5 million. This new property sits opposite CHOP’s recently constructed Middleman Family Pavilion and its accompanying specialty care center.

The acquisition was from UGI Corp., which had purchased the building in 1993 for $9.1 million. Earlier this year, it was reported that UGI Corp., an oil and natural gas company listed on the NYSE, would be relocating its headquarters half a mile away from 460 N. Gulph Road to 500 N. Gulph Road. This move was part of a trend toward superior-quality spaces, as the Brandywine Realty Trust-owned 500 N. Gulph Road underwent a significant $29.7 million renovation in 2019. While CHOP has acquired the five-story building at 460 N. Gulph Road, its specific plans for the property remain undisclosed.

*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.

LevLane Relocates, Downsizes, and Joins Tenant Exodus from Wanamaker Building

LevLane Moves from Wanamaker Building to One Logan Square Amid Tenant Exodus

LevLane, a long-time resident of the Wanamaker building, has shifted its Center City headquarters to One Logan Square, reflecting the ongoing trend of businesses downsizing and seeking more appealing office spaces in light of the rise in hybrid and remote work arrangements.

This transition took place over the summer, and the advertising agency now occupies new offices at One Logan Square. Their new space measures 7,373 square feet, a significant reduction from the 13,914 square feet they had at the Wanamaker. LevLane had been located in the Wanamaker building since 2004.

*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.

Analyzing the Impact of 1701 Market’s Discounted Sale Price on Center City Office Properties

Analyzing the Impact of 1701 Market's Discounted Sale Price on Center City Office Properties

We’ve recently learned the purchase price Alterra Property Group paid for 1701 Market St. last month, and it serves as a stark indicator of the declining value of office buildings in Philadelphia’s central business district.

The building, located at 17th and Market streets and soon to be vacant, was sold for $26.25 million according to public records. This amount represents only about half of its most recent assessed value. The surge in remote and hybrid work arrangements has led to a surge in vacancy rates in Philadelphia office buildings, resulting in a significant decrease in their market values. Even for a property like 1701 Market, which has long been regarded as the prime candidate for an office-to-residential conversion in Center City, the sale price was substantially lower than what it would have fetched just a few years ago.

*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 District Report Identifies Philadelphia as a Leading City in Downtown Pandemic Recovery

Philadelphia ranks among top cities for major drivers of downtown pandemic recovery, Center City District finds

The two most influential factors affecting cities’ downtown recovery are industry mix and commute times, according to new research by the Center City District. That’s a positive sign for Philadelphia, which boasts a diverse mix of downtown land uses and a growing Center City residential population.

Center City District analyzed the downtowns of 26 cities across the country using anonymized cell phone data from Placer.ai to measure how populated each downtown is, comparing 2023 to pre-pandemic 2019.

Philadelphia ranked fifth in percentage of residents, workers and visitors in the downtown core in the second quarter this year compared with the second quarter of 2019.

*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.

Brandywine Plotting for Next Steps in Schuykill Yards

Brandywine CEO Jerry Sweeney 'reading economic tea leaves,' won't build next Schuylkill Yards tower on spec

With the first two ground-up buildings at Schuylkill Yards in their final stages of development, Brandywine Realty Trust is plotting its next steps for the third.

Philadelphia-based Brandywine (NYSE: BDN) is relaunching marketing efforts for its planned 800,000-square-foot East Tower at 3001 John F. Kennedy Blvd., but it’s waiting to begin construction until the building is at least 50% pre-leased and the company has confidence in market conditions.

*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.