COMMERCIAL PROPERTIES
Q3 2021 Summary
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Eric T. Goldstein
Executive Director
King of Prussia District
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Innovative Outdoor Amenities Lure Employees Back to King of Prussia
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Businesses and commercial property owners continue to feel their way around in the post-COVID workplace. Upgrades to office layouts, building mechanical systems and implementation of hybrid schedules provide a safe environment for employees and tenants inside the workplace. Now, property owners are reimagining their outdoor spaces to be just as inviting for successful return-to-office plans.
Commercial property owners are embracing the importance of an inviting outdoor environment. Reducing stress and inciting creativity are two of the many wellness benefits we experience when interacting with nature. This concept, called biophilia, was introduced in 1984 and has grown in popularity with landlords and employers searching for ways to improve the workplace environment. Some of the amenities offered across urban, suburban and rural office buildings include garden plots, beehives, chicken coops, dog parks, recreational stations, public art that incorporate natural elements and even outdoor workstations that double as bird blinds. The biophilia theory has only grown during the pandemic, with employees craving the peace, tranquility and fresh air of the great outdoors.
Pre-pandemic, large commercial property owners and managers like CBRE, JLL, and Cushman & Wakefield planted community gardens and engaged commercial beekeepers to establish hives at their buildings across the country including some in King of Prussia. With a little training, commercial tenants care for the hives and gardens, gather the honey, pick the fruits, vegetables and herbs and enjoy the harvest in a collaborative workplace only found in this new office environment. Tenants also include family members in these office activities, which is emblematic of the hybrid return-to-office model so many businesses have adopted since the pandemic. These imaginative amenities create a shared experience not available at home and will continue to lure employees back to the office and King of Prussia.
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Property Sales Remain Strong in King of Prussia
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Investor interest remains piqued in King of Prussia commercial real estate through 2021. Whether the property is industrial/flex, office/lab, or multifamily, commercial sales continue as demand for more space persists through the pandemic. Examples in key sectors include:
Industrial/Flex
Investor Eli Kahn purchased the 230,000 SF building at 760 Moore Road in April from BNY Mellon and proceeded to flip the office/flex site to Amazon in June for $26.5M.
Purolite Corporation broke ground on its new 74,000 SF manufacturing facility in Renaissance Park in April. The company will be investing more than $39M in construction and fit out with this new space.
Red River Asset Management purchased the 127,000 SF industrial building at 250 King Manor Drive for $9.65M in May. The largest current tenant in the facility is Workhorse Brewing Company.
MLP Ventures purchased the former Philadelphia Inquirer printing plant at 800 River Road in January for $37M. The development company is rumored to spend another $400M converting the industrial site into a 900,000 SF life sciences manufacturing complex.
Office/Lab
Besides manufacturing, MLP Ventures is expanding its life science office and lab space in King of Prussia with the purchase of two properties in Renaissance Park. The two buildings, 2100 and 2201 Renaissance Boulevard, were purchased for $41.8M and add 232,606 SF to MLP’s large life science portfolio in the area called Discovery Labs.
Jack Lingo Asset Management company purchased 211 South Gulph Road for $25.8M in June. This 102,204 SF multi-tenant office building, which includes the headquarters of data analytics company Qlik, is the group’s first acquisition in King of Prussia.
Multifamily Residential
UDR recently added to its inventory of multifamily properties in King of Prussia, purchasing The Smith Valley Forge, for $115M. This 310-unit apartment complex will join UDR’s Park Square, featuring 313 units and The George Apartments, a 200-unit project under construction on the western edge of The Village at Valley Forge. This is in addition to Toll Brother’s 271 townhouses and single-family home development under construction on the east side of King of Prussia.
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Commercial RE Transactions
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Sales
NE IND Owner 6 LLC
305 E. Church Rd., Unit A
$4.875M
1030 OVF Partners LLC
1022/1030 Old Valley Forge Rd.
$940K
Red River King Manor Partners LLC
250 King Manor Dr.
$9.65M
Leasing
200 N. Warner Rd.
44,825 SF
421 Feheley Dr.
15,087 SF
421 Feheley Dr.
10,125 SF
2520 Renaissance Blvd.
8,895 SF
450 S. Henderson Rd.
5,760 SF
200 N. Warner Rd.
4,523 SF
640 Freedom Business Center Dr.
4,509 SF
200 N. Warner Rd.
3,421 SF
660 American Ave.
3,149 SF
660 American Ave.
3,101 SF
620 Freedom Business Center Dr.
2,525 SF
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555 Croton Rd.
2,476 SF
215 W. Church Rd.
2,403 SF
601 S. Henderson Rd.
2,400 SF
215 W. Church Rd.
2,263 SF
214 Hertzog Blvd.
2,246 SF
Tourneau (expansion)
King of Prussia Mall
4,976 SF
Psycho Bunny
King of Prussia Mall
1,201 SF
Scotch and Soda
King of Prussia Mall
1,655 SF
Capital One Café
King of Prussia Mall
3,186 SF
AE77
King of Prussia Mall
2,596 SF
Purple
King of Prussia Mall
3,418 SF
Therabody
King of Prussia Mall
800 SF
Arabian Oud
King of Prussia Mall
700 SF
* Commercial Office
* Retail
Not a complete listing.
Retail leases submitted to King of Prussia District for Q3 2021 as of 10/18/21. 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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© 2021 King of Prussia District. All rights reserved.
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