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Commercial real estate in King of Prussia has come a long way in the past five (5) years. In Q1 2013 the Class-A vacancy was 19.4%. Since that time, the vacancy rate has been cut by almost half to 10.6%. With this strong market for Class-A office space, the average leasing rate grew by 18% to $28.66/SF.
Vacancy rates for Class-B and Class-C office space also dropped over the same five (5) year period from 27.5% to 22.3% and 20.9% to 11.3%, respectively. When all three classes are combined, overall office vacancy rates have dropped almost 8 points to 14.3% while the average lease rate grew to $24.78/SF. The average lease rate PSF for Class-B space increased slightly to $22.70/SF from $22.14 in Q1 2013 while the average lease rate for Class-C space dropped to $15.76/SF.
The impact of this impressive leasing activity in commercial office space is felt well beyond the walls of the commercial office buildings. More leased space means an increase in the number of employees which benefits the larger community. Based on the industrial average of 250 SF/employee, the 8% increase equates to an estimated 1,800 new employees. These individuals, residents and non-residents alike, use their disposable income in King of Prussia stores and restaurants and pay a local service tax that helps fund government essentials, such as emergency services, road maintenance and park improvements.
The demand for industrial and flex space also improved over the same five (5) year period. The vacancy rate for industrial properties decreased by 4.6 points to 1.2%. The vacancy rate for flex space decreased by almost 2 points to 4.1%. Based on the combined inventory of both flex and industrial (217 properties), the vacancy rate dropped 3.2 points over the five (5) year period to 2.5%.
The King of Prussia commercial office and industrial/flex market remains strong entering 2018.
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Moore Park KOP is a New Placemaking Opportunity
The King of Prussia business park takes on a new name
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There's a new energy in King of Prussia's business park, and now there's a new name and identity that reflects this evolving, live/work/play neighborhood: Moore Park KOP.
The transformation of King of Prussia's business park to Moore Park KOP began in September 2014 when Upper Merion Township, with assistance from King of Prussia District (KOP-BID), officially re-zoned the area as a mixed-use district. The new zoning allows for multi-family residential development and service retail for the first time since the creation of the business park in the late 1950s/early 1960s, and has paved the way for a number of projects currently under construction.
In 2016, KOP-BID assembled a committee consisting of the business park's current commercial and industrial property owners, tenants, employees and civic leaders to develop a an
identity
reflective of the
revitalized
neighborhood. While the name is rooted in history - the Moore-Irwin House in the center of the business park served as quarters for General Muhlenberg during the 1777-78 encampment - today Moore Park KOP is vibrant, progressive and poised for growth.
Mixed-use neighborhoods offer a variety of options for people to engage with each other. Whether it's walking to work, relaxing with the sun on a seating plaza or talking to the person next to you at the café, individuals you meet in public spaces have an array of stories that contribute to a community. Developing network of parks and public space will promote these interactions and help to create a sense of place for those that visit, work or live in Moore Park KOP. The First Avenue Road Diet this spring and construction of the Linear Park next year will create public spaces for all to use and allow different modes of transportation in a compact area.
If your business or property is within the former King of Prussia business park and you would like more information about Moore Park KOP brand or would like to know how you can incorporate it into your marketing materials and signage, please contact
rachel@kopbid.com.
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Business in the Spotlight:
Recognizing a leader in optical metrology systems
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Founded in 1998, Trilion Quality Systems develops precision 3-D optical measurement and inspection testing devices for a wide range of industries. With 17 employees and over 150 years of combined experience in engineering, technology and product testing fields, Trilion moved its headquarters to 651 Park Avenue to accommodate growth in equipment development and inspection services.
The equipment and support offered by Trilion directly lead to improved design and product standards in a variety of industries that impact our daily lives, including material testing, academia, automotive, aerospace, oil and gas, telecommunications, and die making. Trilion Quality Services is a wonderful addition to the R&D and manufacturing enterprises in Moore Park KOP.
For the hardcore engineers, Trilion's website features detailed information about their technologies and past projects. These meticulous systems are matched in care by the Trilion engineers that work with their customers on research and testing applications.
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In the News
King of Prussia Mall owner to invest millions in upgrades to aged 'Plaza' retail wing
The Philadelphia Inquirer
The King of Prussia Mall owner Simon Property Group Inc. plans to spend millions on fresh tiles, new lighting, and other upgrades to an aging section of its suburban retail emporium as it seeks to sustain the upscale vibe that's helped make the property one of the nation's most valuable shopping malls.
Read More...
King of Prussia Business Park is no more
Philadelphia Business Journal
The King of Prussia Business Park, an area bound by North Gulph Road and just past Allendale Road and Route 23 and the Pennsylvania Turnpike that is populated by flex and office buildings, has a new name and logo that seeks to shed its past and embrace its future.
Read More...
From three floors to one, Qlik finds its new HQ in King of Prussia
Phildelphia Business Journal
Qlik ended up signing a 10-year lease on 62,000 square feet at 211 S. Gulph Road in King of Prussia and later this year will relocate its headquarters and 300 employees from Radnor.
Read More...
Three projects are set to get underway along North Gulph Road in Upper Merion, continuing the robust development activity that King of Prussia has been experiencing during the last several years.
Read More...
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Commercial Sales & Leasing Activity
SALES
BAYCREST MANAGEMENT
MLP VENTURES
$76.9M | 357,705 SF
211 S GULPH ROAD
62,000 SF
610 FREEDOM BUSINESS CENTER DRIVE
10,000 SF
640 FREEDOM BUSINESS CENTER DRIVE
5,997 SF
2300 RENAISSANCE BOULEVARD
3,120 SF
1150 FIRST AVENUE
2,452 SF
PIZATA
KING OF PRUSSIA MALL
1,830 SF
RUBY THAI KITCHEN
KING OF PRUSSIA MALL
426 SF
INTIMISSIMI/CALZEDONIA
KING OF PRUSSIA MALL
2,740 SF
MARKETPLACE EATERY
KING OF PRUSSIA MALL
3,890 SF
KICKSUSA
KING OF PRUSSIA MALL
7,000 SF
O BAG
KING OF PRUSSIA MALL
1,196 SF
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INVISALIGN
KING OF PRUSSIA MALL
6,967 SF
CHARLES TYRWHITT
KING OF PRUSSIA MALL
JOHNNY WAS
KING OF PRUSSIA MALL
ZARA
KING OF PRUSSIA MALL
29,500 SF
EDDIE V'S
KING OF PRUSSIA MALL
12,467 SF
NORTH ITALIA
KING OF PRUSSIA MALL
8,000 SF
BARTACO
KING OF PRUSSIA MALL
6,500 SF
SHOE DEPT ENCORE
KING OF PRUSSIA MALL
5,330 SF
KILWINS CHOCOLATES AND ICE CREAM
KING OF PRUSSIA TOWN CENTER
1,853 SF
PEARLE VISION
KING OF PRUSSIA TOWN CENTER
1,801 SF
VITALITY BOWLS
KING OF PRUSSIA TOWN CENTER
1,097 SF
Not a complete listing.
Retail leases submitted to KOP-BID for Q4 2017, as of 1.9.18.
All other sales and leasing info from CoStar.
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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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© 2018 King of Prussia District. All Rights Reserved.
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