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King of Prussia's Q3 2018 commercial vacancy rates improved for a fourth straight quarter, with another drop in available Class A space. The 9% direct vacancy rate is the second time Class A vacancy fell below double digits in 10-years. The lease rates for Class A continue to increase to and now average $29.42 PSF.
Class B vacancy fell to a 10-year low of 18.4%, with the average lease rate holding steady at $22.91 PSF. The improvements in Class A and B space did not transfer to Class C, which continues to fluctuate around an 18% vacancy rate. The average Class C lease rate improved from last quarter to $16.27 PSF. The impressive progress in Class A and B space reduced the aggregate vacancy rate to a 10-year low of 12.5% while bolstering the average lease rate among all classes to $25.08 PSF.
The demand for industrial and flex space also improved over the same 10-year period. The vacancy rate for industrial properties decreased from a 10-year high of 5.8% points to 1.6% at the end of Q3 2018, while the average lease rate increased from a low under $6 to a 10-year high of $8.77/nnn. The vacancy rate for flex space remained the same from the previous quarter at 3.8% in contrast to a 10-year high of 9.4% with average lease rates steady at an impressive level of $12.44/nnn at the end of Q3 2018.
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Business in the Spotlight:
A leader in data analytics software
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Data drives a variety of decisions made every day by corporations. Understanding the data behind these conclusions is what leads to successful outcomes. Yet, less than a third of the population can understand and utilize data resources. That is why Qlik, the leading data analytics software company, is teaming with five other global industry leaders, Cognizant, Experian, the Chartered Institute of Marketing, Pluralsight and Data to the People, to launch the Data Literacy Project.
"With the growing presence of automation, robotics and artificial intelligence, feeling comfortable and confident working with data is critical for individuals navigating the future of work," said Mike Capone, Qlik CEO, in a company press release. "We have brought together this group of passionate leaders to ignite discussion, create better resources and drive greater appreciation for data skills that are critical for the data revolution occurring around us."
This bold new project is on the heels of Qlik's announcement that the company is moving its headquarters and about 300 employees from Radnor to 211 South Gulph Road in King of Prussia. The 62,000 SF space will provide a single continuous floor plan that can provide a collaborative office environment necessary for this growing tech company. As an enterprise that helps the world understand the business intelligence industry, Qlik recognizes the advantages its new headquarters in King of Prussia will deliver through thoughtful workplace design and accessible amenities in the surrounding community.
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In the News
SEPTA'S KOP Rail Plays a Key Role in Montgomery County's Comprehensive Plan
Following five years of detailed analysis and community input, the KOP Rail project is moving out of the planning phase and into design.
Read More...
Philadelphia Hand to Shoulder Center wants to Extend Reach into Suburbs
Philadelphia Business Journal
Already the country's largest specialty practice of its kind, the Philadelphia Hand to Shoulder Center is looking to expand its reach.
Read More...
Personalized Medicine Company Genomind Names CEO & President
Philadelphia Business Journal
Genomind, a personalized medicine company, has revamped its leadership team with the appointment of a new CEO and a new president.
Read More...
Auto Lending Tech Firm Takes 26K SF Lease in King of Prussia Office
GlobeSt.com
Sagent Lending Technologies, which develops automotive, mortgage, and consumer loan servicing and origination technology, signed a new, 26,588-square-foot lease at 1000 Continental in King of Prussia, PA.
Read More...
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Commercial RE Transactions
SALES
KING OF PRUSSIA DEKALB, LLC
SKY KING INVESTMENTS, LLC
1006 W NINTH AVE, #8
$2.68M | 23,537 SF
BOYD GAMING
1160 FIRST AVENUE
$280.5M | 303,000 SF
1000 CONTINENTAL DR.
SAGENT LENDING TECHNOLOGIES
26,588 SF
PELOTON INTERACTIVE, INC.
421 FEHELEY DRIVE
ULTIMATE HOME SERVICES
10,125 SF
630 FREEDOM BUSINESS CENTER DRIVE
OPENWORKS
475 ALLENDALE ROAD
10,329 SF
555 CROTON ROAD
6,779 SF
2900 HORIZON DRIVE
50,000 SF
150 SOUTH WARNER ROAD
42,746 SF
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200 NORTH WARNER ROAD
9,696 SF
1018 WEST 9TH AVENUE
18,335 SF
1000 CONTINENTAL DRIVE
26,588 SF
LORO PIANA
KING OF PRUSSIA MALL
CHRISTIAN LOUBOUTIN
KING OF PRUSSIA MALL
LINDT CHOCOLATE
KING OF PRUSSIA MALL
1,900 SF
NORTH ITALIA
KING OF PRUSSIA MALL
13,100 SF
SHOE DEPT ENCORE
KING OF PRUSSIA MALL
11,106 SF
ZARA
KING OF PRUSSIA MALL
29,500 SF
MONNALISA
KING OF PRUSSIA MALL
800 SF
Not a complete listing.
Retail leases submitted to KOP-BID for Q3 2018, as of 10.16.18.
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. All industrial and flex statistics are NNN.
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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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