COMMERCIAL PROPERTIES
Q1 & 2 2020 Summary
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The King of Prussia commercial sector continues to move forward with the strength and resiliency that the region has come to expect from the largest commercial real estate market outside of Philadelphia, even in the midst of the COVID-19 pandemic.
The vacancy rate for Class A office space is 8.4%, more than a 2-point drop from this same time last year, while the average leasing rate increased by $1.28 to $33.26 PSF. Class B office space fluctuated more over the 12-month period but settled at 12.1%, still below the 12.7% at the end of Q2 2019. Vacancy rates for Class C office space experienced the greatest fluctuation over the 12-month period, jumping from 1.7% in 2019 to 6.3% at the end of the latest quarter. However, the inventory in Class C office spaces is still small compared to the other classes with only 364,000 SF over 14 properties. The average leasing rate increased over the same period by more than $8 to $25.76 PSF.
Industrial and flex space mirrors the assorted office sector. Vacancy rate for industrial property remains at a minuscule 0.3% with an average lease rate increase of $1.30 to $9.11 NNN from the same time last year. Flex properties spiked to 18.8% vacancy rate but the renewed interest in lab space will surely drive this number lower. The average lease rate for flex space still climbed to $29.45 NNN, an increase of $1.80 PSF from the end of Q2 2019.
While the long-term impact of the economic disruption is uncertain, King of Prussia’s business community was bolstered by the U.S. Small Business Administration’s Payroll Protection Plan since the beginning of the program in April. Over 227 loans were distributed to King of Prussia businesses to keep workers on the payroll or help cover overhead, including commercial lease payments. This accounts for the largest number of approved applications in the region outside of Philadelphia. The Commonwealth of Pennsylvania and Montgomery County also offer small business assistance and grants to eligible companies persevering during this unprecedented pandemic.
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Eric T. Goldstein
Executive Director
King of Prussia District
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WuXi Biologics, a spinoff from WuXi AppTec, is leasing 33,000 SF of space from Discovery Labs at 411 Swedeland Road. The addition of this leader in contract research, development and manufacturing services to pharmaceutical companies will strengthen King of Prussia’s position in the life science industry. WuXi Biologics expects to bring 100 new jobs to the facility by the end of the year.
WuXi Biologic’s original parent company, WuXi AppTec, has already made a name for itself with 29 facilities and offices across Asia, Europe, Middle East and the US, including a large facility at Philadelphia’s Navy Yard that employs over 600 people.
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Commercial RE Transactions
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Sales
P&F Ventures LLC
Flint Hill Rd./Renaissance Blvd.
$1.4M
JM Real Estate Holdings LP
727 W. DeKalb Pk.
$1M
JM Real Estate Holdings LP
729 W. DeKalb Pk.
$1M
Fabiani Builders & General Contractors
161 Boro Line Rd.
$850K
UHS of Deleware, Inc.
395 S. Gulph Rd.
$1M
Leasing
1021 W. Eighth Ave.
49,112 SF
2301 Renaissance Blvd.
20,682 SF
3000 Horizon Dr.
13,300 SF
1018 W. Ninth Ave
13,210 SF
150 S. Warner Rd.
6,461 SF
2520 Renaissance Blvd.
6,135 SF
780 Fifth Ave.
5,800 SF
301 E. Church Rd.
5,800 SF
901 E. Eighth Ave.
4,677 SF
555 Croton Rd.
4,303 SF
3604 Horizon Dr.
3,601 SF
150 S. Warner Rd.
3,551 SF
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150 S. Warner Rd.
3,402 SF
700 American Ave.
3,109 SF
700 American Ave.
2,925 SF
700 American Ave.
2,775 SF
186 E. DeKalb Pk.
2,700 SF
411 Feheley Dr.
1,800 SF
Carlisle
KOP Mall
1,800 SF
Wacoal
KOP Mall
1,703 SF
Chanel
KOP Mall
946 SF
O Chi Reflexology
KOP Mall
967 SF
Hive & Colony
KOP Mall
737 SF
Mezeh Mediterranean Grill
KOP Mall
1,495 SF
Watches of Switzerland
KOP Mall
964 SF
Morgan's Brooklyn Barbeque
KOP Mall
3,683 SF
Anthology Leasing Office
KOP Town Center
1,470 SF
* Commercial Office
* Retail
Not a complete listing.
Retail leases submitted to King of Prussia District for Q1 and Q2 2020, as of 7/13/20. 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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