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The first quarter of 2017 shows an uptick in the vacancy rate in Class A properties in King of Prussia from 8% to around 11%, while Class B and Class C held steady. While there doesn't seem to be a significant change in demand for Class A commercial office space in King of Prussia, the uptick seems more likely to be attributed to the "natural swings in the market" and/or "timing", according to experts I spoke to in the industry. Overall, the combined vacancy rate for all commercial office space in King of Prussia crept up a little over two points, to a little under 15%.
According to CoStar, the average Class A lease rate dropped below $28/SF for the first time in two quarters but remains higher than this time last year. Class B and Class C commercial office lease rates continue to rise. The average for Class B increased to $21.27/ SF, while Class C increased to $19.40/SF.
Industrial and flex space continues to remain a very healthy part of the King of Prussia commercial market with a low vacancy rate of 2.8% and average lease rates of $7.35nnn in Q1 2017, up slightly from the previous quarter.
The second quarter of 2017 will bring continued retail and dining openings and the occupation of the new HTH Worldwide headquarters on First Avenue, a 110,000SF BTS owned by Brandywine Realty Trust.
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Two KOP Deals Make PBJ 2017 'Best Real Estate Deals' List
The Village at Valley Forge/King of Prussia Town Center Named Project of the Year!
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Each year, the Philadelphia Business Journal (PBJ) honors the Best Real Estate Deals of the year, including anything from building sales and renovations to project completions. The awards jury reviewed projects from throughout the region. KOP-BID Executive Director Eric Goldstein was one of the jury members charged with judging the deals that were deemed to have the highest impact on the region. "The gamechangers", as the PBJ calls them, - were provided top honors.
PROJECT OF THE YEAR - BEST REAL ESTATE DEAL
The Village at Valley Forge/King of Prussia Town Center
"It's transformative," said Cathy Coate, senior VP at SSH Real Estate, who served on the selection panel. "It's a very, very big deal that is creating a whole community where there had been no center to King of Prussia."
Once completed, The Village at Valley Forge will have 2,500+ residential units of all kinds, 500,000 SF of retail space and 1 to 1.5M SF of office space, surrounding a walkable town center and outdoor pavilion.
BEST REAL ESTATE DEAL
King of Prussia Mall Expansion
In just two years, King of Prussia Mall completed its 155,000 SF expansion, connecting its former two buildings into one shopping mecca. Now the East Coast's largest shopping mall features 450+ luxury and first-to-market retailers, Savor food court and a concierge -- thus landing it a 'Best Real Estate Deal' of 2016.
Read More from the Philadelphia Business Journal...
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Palpable New Energy in KOP
2017 King of Prussia District Annual Report to the Community is the Perfect Tool to Market KOP to Potential Tenants/Buyers
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2016 was a spectacular year for King of Prussia! The media took notice and declared KOP the:
In the KOP-BID 2017 Annual Report to the Community, it won't take you long to see that KOP has re-established itself as the economic powerhouse of the suburban Philadelphia region.
KEY FACTORS DRIVING KOP'S MOMENTUM that you'll read about in the Report:
- $1B in Economic Development Projects recently completed or underway
- 56 New Retailers and Restaurants Opened in 2016, with dozens more slated for 2017
- 7 New Multi-Family Residential Projects, totaling 2,500+ units recently completed or under construction
- 3 Companies Announced Their Corporate Headquarters Relocation to KOP
- Class A Commercial Office Vacancy is Less than 8%, Q4 2016
- Total Employment Over 60,000, with unemployment at just 3.1%
The 2017 Report to the Community should be your essential marketing tool when discussing King of Prussia with potential tenants and buyers. Available in print or easy-reader online.
To request printed copies, please contact
brooke@kopbid.com. Five (5) complimentary copies provided to each company. Additional copies available for purchase.
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$2.7M Investment to Reposition KOP Office Building
Property Seeks New Medical Tenants for Space
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The Leser Group of Brooklyn, N.Y. purchased the 44,000 SF 170 N. Henderson Road medical office building in December 2015. It plans to complete a $2.7M renovation to the property by Q4 2017, including: a new lobby and entrance; facade renovations; regrading of the land to accommodate additional on-site parking; and upgraded finishes in the restrooms and common spaces.
"The location and Route 202 visibility of the project are incredible," said Ina Sargen, a broker with Colliers International (representing the landlord), in a 2017 Philadelphia Business Journal article. "We know there are several of the area's major health systems in the area and there are others currently looking to establish a presence in King of Prussia."
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INDUSTRIAL COLOR STUDIOS
The Interest of E-Commerce in King of Prussia
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Widely hailed as one of the greatest shopping destinations in the world, King of Prussia is home to the East Coast's largest shopping mall and a brand new 'Main Street' district, ideal for businesses, residents and visitors alike. But did you know that it is also the center of the e-commerce content production universe lead by the power-house capabilities of Industrial Color Studios, located in the heart of the KOP business park. This photography and video production company delivers high quality content for companies that want it's product to take the internet by storm.
Formerly the Studio Division of eBay Enterprise Marketing Solutions, this unit was acquired by Industrial Color Brands in Q1 2016. With the addition of the Studio's talented photographers, copywriters and production staff, the parent company expanded its capacity to provide e-commerce solutions with the addition of 19,000 SF of studio space in KOP.
1075 First Avenue
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In the News
Cover Features & Large Sales
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Philadelphia magazine's 10-page
cover feature on King of Prussia.
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The Suburbs Strike Back
Is King of Prussia the new 'Promised Land'? Cover and 10-page feature on KOP.
Read More...
Four Yrs Later, Triad Office Building Sells for Big Number
Philadelphia Business Journal
Purchased in 2013 for $8.1M, the 184,000 SF property sold in March for $30.2M. Read More...
O'Neill Sells KOP Building for $24M
Philadelphia Business Journal
"It's a good time to sell a few buildings and make a few bucks," said J. Brian O'Neill.
Read More...
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Leasing Activity
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256 MALL BLVD.
43,500 SF
SAKS OFF 5TH
301 GODDARD BLVD.
42,000 SF
2200 RENAISSANCE BLVD.
5,400 SF
ORCHESTRA FRENCH FASHION FOR KIDS
KING OF PRUSSIA MALL
4,405 SF
2200 RENAISSANCE BLVD.
4,300 SF
HABIT BURGER
KING OF PRUSSIA TOWN CENTER
4,289 SF
1006 W. 9TH AVE.
4,241 SF
1150 FIRST AVE.
3,087 SF
CHOOLAAH INDIAN BBQ
KING OF PRUSSIA TOWN CENTER
2,700 SF
MARC CAIN
KING OF PRUSSIA MALL
2,500 SF
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BVULGARI
KING OF PRUSSIA MALL
2,202 SF
TUTTI SPA & NAILS
KING OF PRUSSIA MALL
2,108 SF
234 MALL BLVD.
2,107 SF
DUCK DONUTS
KING OF PRUSSIA TOWN CENTER
1,500 SF
ECCO
KING OF PRUSSIA MALL
1,300 SF
JOIE
KING OF PRUSSIA MALL
1,230 SF
UNTUCKIT
KING OF PRUSSIA MALL
1,212 SF
LE CREUSET
KING OF PRUSSIA MALL
1,012 SF
Not a complete listing.
Leases submitted to KOP-BID for Q1 2017, as of 4.18.17.
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King of Prussia District (KOP-BID) is a 501(c)(3) not-for-profit, special
services organization. KOP-BID engages public and private partners to
collaboratively improve the economic environment in King of Prussia
by making it more vibrant, attractive and prosperous.
Learn more at visitKOP.com
DISCLAIMER: All information obtained using CoStar Analytics and field checked for accuracy by KOP-BID. Vacancy rates are calculated using existing, non-owner occupied commercial buildings in Upper Merion Township only, over 10,000 SF, Class A, B, and C plus retail, industrial and flex.
KOP-BID uses "Direct % Vacant Available" in its vacancy rate reporting.
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234 Mall Boulevard, Suite 150, King of Prussia PA 19406
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© 2016 King of Prussia District. All Rights Reserved.
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