Large deals made headlines in the third quarter of 2015, according to JLL’s Office Statistics and Insights, released in October:
Four investment sales took place totaling more than $211.5M in the King of Prussia/Wayne area.
- CrossPoint at Valley Forge, a recent redevelopment project at 550 E. Swedesford Road, sold for $328 per square foot, topping last year’s high watermark of 1000 Continental Drive by $22 per square foot.
- Liberty Property Trust continued its exit from suburban Philadelphia office buildings, selling a three-building portfolio at Devon Park Drive to a private partnership for $253 per square foot
- Liberty Property Trust also sold the four-building Bay Colony Executive Park to Equus Capital Partners for $151 per square foot.
- The fully leased 211 S. Gulph Road sold for $205 per square foot, breaking the Class B office sales $200-per-square-foot water mark.
King of Prussia / Wayne’s looming large vacant office space has dropped, significantly.
- More than 600,000 square feet of vacant office space was going to be brought to market over the next two years as GlaxoSmithKline will leave 200,000 square feet in King of Prussia in January 2017.
- Shire has accelerated the process of vacating 400,000 square feet in Chesterbrook through the end of 2016
Despite this change, Comcast Spotlight announced plans to consolidate several locations into 129,459 square feet that Shire exited at 725 Chesterbrook Boulevard, Deacom will relocate and expand into 29,625 square feet, and Saul Ewing renewed 15,000 square feet – all positive developments.
Malvern’s absorption posts positive gains for the quarter. In Q2, Malvern / Exton’s occupancy losses of 133,790 square feet in Q2 were quickly negated in Q3 with 137,844 square feet of absorption largely due to Siemen’s Healthcare occupying the recently vacated 40 Liberty Boulevard.