COMMERCIAL PROPERTIES
Q4 2019 Summary
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Commercial real estate in King of Prussia finished 2019 strong. Class A office remains strong with a 9.8% vacancy rate and an average lease rate at $32.57/SF. Commercial property owners added over $2M in annual average leasing value since 2014 when the vacancy rate was over 16% and average lease rates were $27.20/SF.
Vacancy rates for Class B office were cut by half over the same 5-year period from 22.9% to 11.2%, while average lease rates increased to $23.43/SF. Vacancy rates for Class C office increased from 1.7% to 7.1% due, primarily, to expired leases in three buildings. Aggregate office vacancy rates have dropped over 8 points to 10.1%, while the average lease rates increased to $27.94/SF.
Demand for industrial and flex space also improved over the same five-year period. The vacancy rate for industrial properties decreased by almost 3 points to 0.2% from this time five years ago and the average lease rate increased by more than $3 to $9.49 NNN. The vacancy rate for flex space increased to 17.6% with an increase in the average lease rate to $28.40 NNN. This category is abnormally high since it includes space at The Discovery Labs which is being repositioned following the departure of GlaxoSmithKline.
King of Prussia’s commercial market continues to compete well in the regional market. King of Prussia’s vacancy rate is one point lower than the Downtown Philadelphia Market and almost 6 points lower than the Suburban Philadelphia Market, as reported by CBRE’s Q4 2019 Marketview Report.
Thanks as always for your support and interest in King of Prussia.
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Eric T. Goldstein
Executive Director
King of Prussia District
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In late 2019, Purolite Corporation moved its headquarters to Renaissance Boulevard in King of Prussia. The addition of this leader in ion exchange, catalyst, adsorbent and specialty high-performance resins to Upper Merion Township is a testament to the variety and quality of manufacturing and life science industries in our community.
After 36 years in Bala Cynwyd, Purolite outgrew its existing facility and needed a new location to continue the advancement of specialty resins. With 40 employees at the new headquarters in King of Prussia and over 1,000 worldwide, their new location will provide the space for future development. The new space is approximately 30% larger than their prior location. As reported in the company’s press release, “Our goal was to create a headquarters that reflected our commitment to our team members and customers as well as representative of the innovation and design that we deeply value. We believe we found the ideal space,” said Jacob Brodie, Vice President.
Purolite’s resins can be found in a variety of products across many industries, including pharmaceuticals and hydrometallurgy, among others.
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Commercial RE Transactions
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Sales
CBRE Global Investors
301 Village Dr.
$117M
Pembroke IV LLC
200 N Warner Rd.
$37.9M
MCR
530 W DeKalb Pk.
$19.7M
102 Queens Lane LLC
102 Queens Dr.
$4.2M
Family Dining, Inc.
568 W DeKalb Pk.
$2.9M
Leasing
102 Queens Dr.
23,000 SF
935 First Ave.
13,362 SF
475 Allendale Rd.
12,654 SF
1000 Continental Dr.
11,318 SF
200 N Warner Rd.
9,769 SF
357 . Gulph Rd.
7,770 SF
625 Clark Ave.
7,016 SF
200 N. Warner Rd
5,027 SF
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501 Allendale Rd.
4,900 SF
1000 Continental Dr.
4,652 SF
640 Freedom Business Center Dr.
4,509 SF
225 S Henderson Rd.
4,300 SF
357 S Gulph Rd.
3,134 SF
216 Mall Blvd.
2,538 SF
200 N Warner Rd.
2,103 SF
640 Freedom Business Center Dr.
2,027 SF
Aesop
KOP Mall
800 SF
Bonchon
KOP Mall
700 SF
Sally Beauty
KOP Mall
2,042 SF
The Escape Game
KOP Mall
NovaCare
KOP Town Center
1,564 SF
* Commercial Office
* Retail
Not a complete listing.
Retail leases submitted to King of Prussia District for Q4 2019, as of 1/8/20. All other sales and leasing info from CoStar.
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King of Prussia District is a 501(c)(3) not-for-profit, special services organization.
King of Prussia District engages public and private partners to collaboratively
improve the economic environment in King of Prussia by making it more vibrant,
attractive and prosperous.
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DISCLAIMER: All information obtained using CoStar Analytics and field checked for accuracy by King of Prussia District. 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. King of Prussia District uses "Direct % Vacant Available" in its vacancy 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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© 2020 King of Prussia District. All rights reserved.
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