Tag: Newmark Knight Frank

The Greater Philadelphia Office Market Closes the Decade on a High Note

Amanda Nardi

Philadelphia, PA (January 16, 2020) — Newmark Knight Frank (NKF) released its fourth-quarter 2019 office reports for the Philadelphia CBD and suburbs, Southern New Jersey, and Northern Delaware today. Across the region, the office market concluded 2019 with robust positive absorption, continued rent growth, new construction, and the promise of more demand-driven development to kick off the new year.

In Philadelphia’s Central Business District (CBD), market activity was largely driven by the “eds & meds” sector, which contributed significantly to the overall quarterly absorption of 142,976 square feet through notable deals such as Children’s Hospital of Philadelphia and Limelight Bio, each leasing a full floor at 3535 Market Street in University City. “Eds & meds” is also among the sectors catalyzing new development. Drexel University officially signed for a 258,000-square-foot build-to-suit in University City this quarter and exercised the option to expand the building to 454,000 square feet to accommodate multiple College of Medicine programs. This was one of two new build-to-suit deals signed in the fourth quarter downtown; Morgan Lewis & Bockius also signed with Parkway Corporation for a 308,000-square-foot build-to-suit at 2222 Market Street.

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130 Monument Road Development Site Sells for $8.94 Million

Amanda Nardi

Newmark Knight Frank Represents Seller in 5.23 Acre Shovel Ready Multifamily Development Transaction

Philadelphia, PA (November 26, 2019) — Newmark Knight Frank’s (NKF) greater Philadelphia Capital Markets team comprising Mike Margolis, Dave Dolan and Dave Garonzik, along with local market expert, Jeff Mack, have successfully completed the sale of 130 Monument Road in Bala Cynwyd. The team represented Roseland Residential Trust, a Mack-Cali Company of Jersey City, NJ, in the $8.94 million sale to Woodfield Development of Chevy Chase, MD.

The 5.23-acre development was site plan approved and is pending only a building permit before construction can begin. The site is zoned and approved for the development of 205 multifamily units. As approved, the design features five stories of residential units over a podium. The building will be a mix of studio, one-bedroom and two-bedroom apartments, along with a parking garage and leasing office. The site sits directly on Monument Road, providing unmatched regional connectivity with tremendous access to major roadways such as City Avenue, I-76, and US-1. Residents will be a short walk away from shopping and dining, along with nearby transportation from SEPTA’s regional rail station. Bala Cynwyd lies directly on the City Avenue Corridor, Philadelphia’s “Golden Mile.” Adjacent to Center City with thriving demographics, this location has evolved into a surging urban/suburban environment, with a large employment base, walkable amenities and a flourishing residential community.

130 Monument Road will experience an accelerated lease-up period and the investor will be able to garner premium rents due to the heavy supply-constrained location. At $43,416 per unit, 130 Monument Road was one of the highest price-per-unit development sales in the last seven years among suburban multifamily land sale comparables, emphasizing the demand for luxury apartments in one of Philadelphia’s premiere live, work, play environments.

About Newmark Knight Frank

Newmark Knight Frank (“NKF”), operated by Newmark Group, Inc. (“Newmark Group”) (NASDAQ: NMRK), is one of the world’s leading and most trusted commercial real estate advisory firms, offering a complete suite of services and products for both owners and occupiers. Together with London-based partner Knight Frank and independently-owned offices, NKF’s 18,000 professionals operate from approximately 480 offices on six continents. NKF’s investor/owner services and products include investment sales, agency leasing, property management, valuation and advisory, diligence, underwriting, government-sponsored enterprise lending, loan servicing, debt and structured finance and loan sales. Occupier services and products include tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate services consulting, project management, lease administration and facilities management. For further information, visit www.ngkf.com.

Discussion of Forward-Looking Statements about Newmark

Statements in this document regarding Newmark that are not historical facts are “forward-looking statements” that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. Except as required by law, Newmark undertakes no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Newmark’s Securities and Exchange Commission filings, including, but not limited to, the risk factors and Special Note on Forward-Looking Information set forth in these filings and any updates to such risk factors and Special Note on Forward-Looking Information contained in subsequent reports on Form 10-K, Form 10-Q or Form 8-K.

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Newmark Knight Frank Retained to Sell Liberty Walk at East Gate

Amanda Nardi

Philadelphia, PA (November 7, 2019) — Newmark Knight Frank (NKF) has been appointed as the exclusive broker in the sale of Liberty Walk at East Gate, a four-building office park located in Mount Laurel, New Jersey. NKF’s Philadelphia Capital Markets team comprising Mike Margolis, Dave Dolan and Dave Garonzik will market the property for sale. The 235,000-square-foot office park, located at 300, 302, 330 and 350 Fellowship Road, was acquired by current ownership in 2014 from Liberty Property Trust, the building’s developer, as part of a larger property portfolio.

“The buildings, highlighted by a completely revitalized long-term corporate headquarters building and the only LEED Gold Certified building in Southern New Jersey outside of Camden, are some of the highest quality buildings in the extremely accessible and desirable ‘3M’ submarket encompassing Mount Laurel, Marlton and Moorestown,” said Margolis

Liberty Walk at East Gate is currently 76 percent leased to eight tenants, providing an investor long-term upside with a weighted average lease term of approximately 7.5 years, as well as the ability to create significant value through the lease-up of remaining vacancies. Investment grade companies such as Morgan Stanley, Oracle, Comcast and PMA Companies highlight the office park’s impressive tenant roster. Marlin Capital Solutions, another high-quality publicly traded company, is the office park’s long-term (since 2004) anchor tenant. Marlin Capital Solutions recently extended its lease term and is undertaking a gut-renovation of the 300 building and a portion of the 302 building.

About Newmark Knight Frank
Newmark Knight Frank (“NKF”), operated by Newmark Group, Inc. (“Newmark Group”) (NASDAQ: NMRK), is one of the world’s leading and most trusted commercial real estate advisory firms, offering a complete suite of services and products for both owners and occupiers. Together with London-based partner Knight Frank and independently-owned offices, NKF’s 16,000 professionals operate from approximately 430 offices on six continents. NKF’s investor/owner services and products include investment sales, agency leasing, property management, valuation and advisory, diligence, underwriting, government-sponsored enterprise lending, loan servicing, debt and structured finance and loan sales. Occupier services and products include tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate services consulting, project management, lease administration and facilities management. For further information, visit www.ngkf.com.

Discussion of Forward-Looking Statements about Newmark
Statements in this document regarding Newmark that are not historical facts are “forward-looking statements” that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. Except as required by law, Newmark undertakes no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Newmark’s Securities and Exchange Commission filings, including, but not limited to, the risk factors and Special Note on Forward-Looking Information set forth in these filings and any updates to such risk factors and Special Note on Forward-Looking Information contained in subsequent reports on Form 10-K, Form 10-Q or Form 8-K.

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200 N Warner Road Sells for $37.85 Million Newmark Knight Frank Represents Seller in 165,000± SF Office Transaction

Amanda Nardi

Philadelphia, PA (October 22, 2019) — Newmark Knight Frank’s (NKF) greater Philadelphia Capital Markets team comprising Mike Margolis, Dave Dolan and Dave Garonzik, along with local market expert, Jim Dugan, have successfully completed the sale of 200 N Warner Road in King of Prussia. The team represented the joint venture of Taconic Capital and Cohen Equities, both of New York, NY, in the $37.85 million sale to Pembroke Capital of Bryn Mawr, PA.

When Taconic Capital and Cohen Equities acquired the property in May of 2016, the occupancy rate was at 65 percent. The seller completed a $4.2 million comprehensive modernization program that included enlarging and remodeling the lobby, creating all new common areas and restrooms, full replacement and addition of windows, as well as the addition of two common area tenant conference rooms and a lobby grab n’ go. This capital investment led to momentous leasing success, and rental rates increasing approximately 35 percent at the property.

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Industrial Development Momentum Continues for Greater Philadelphia

Amanda Nardi

Wayne, PA (October 14, 2019) — Newmark Knight Frank (NKF) released its third-quarter 2019 industrial market reports for Greater Philadelphia and the I-81/78 Corridor. The I-81/78 Corridor realized positive net absorption to the tune of approximately 751,000 square feet, regaining momentum following last quarter’s net occupancy losses, the first in a decade. Development in the Corridor remained at record levels, with 18.1 million square feet under construction. In the Greater Philadelphia industrial market, overall development levels hit an all-time high of 7.9 million square feet during the past three months.

In the third quarter of 2019, vacancy in the I-81/78 Corridor rose 50 basis points to 7.6 percent, the highest level since 2014. This increase came as a result of speculative supply additions outpacing demand, although millions of square feet in pending occupancies planned by year-end are likely to trim the vacancy rate in the fourth quarter. The largest occupancy in the third quarter occurred at 4532 United Drive in the Central Pennsylvania submarket where Lowes moved into the 1.2-million-square-foot warehouse that completed construction earlier this year. Development levels in the Corridor remained at record highs, with 18.1 million square feet across 30 projects under construction, posting an overall preleasing rate of 38.7 percent. Among the projects that broke ground this quarter was a 352,000-square-foot warehouse at 693 North Hills Road, at the site of a former industrial building that the developer, Endurance Real Estate Group, purchased and razed. This is the latest example in a growing trend of redevelopment or raze/new-build in the Corridor market. NKF Associate Director Nick Pickard noted, “First-class development sites are dwindling and as users seek modern logistics space, obsolete industrial buildings in prime locations have become greater targets for redevelopment.” Other examples of this trend include the renovation and expansion of the existing structure at 485 St. Johns Church Road in Central Pennsylvania and the redevelopment of Kraft Food’s demolished plant into Park 100 Logistics Center in the Lehigh Valley.

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Inventory Fails to Keep Up With Demand

Amanda Nardi

Wayne, PA (October 29, 2018) — Newmark Knight Frank (NKF) released its third-quarter 2018 industrial market reports for Greater Philadelphia and the I-81/78 Corridor. The combined markets closed the period with 5.0 million square feet of positive absorption. Warehouse properties accounted for 4.5 million square feet of this quarter’s occupancy gains. Overall vacancy declined 10 basis points to 6.2 percent, while warehouse vacancy decreased 20 basis points to 7.0 percent. 4.3 million square feet delivered during the third quarter with most of it centered in the I-81/78 Corridor market.

The Southeastern Pennsylvania market closed the third quarter of 2018 with 263,684 square feet in negative absorption. Total vacancy for all property types increased 20 basis points from the second quarter to 5.9 percent. Philadelphia County and Montgomery County were the only submarkets in Southeastern Pennsylvania with quarterly positive absorption reporting occupancy gains of 31,748 square feet and 111,795 square feet, respectively. During the third quarter, AgustaWestland began its move into 47,750 square feet at 9230-9250 Ashton Road in Philadelphia County. The tenant will occupy its remaining space in October. In Montgomery County, Cambria moved into 65,000 square feet at 780 3rd Avenue.

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NKF Welcomes Sandra Benek to its Project Management Team

Amanda Nardi

Philadelphia, PA (October 26, 2018) — Newmark Knight Frank (NKF) welcomes Sandra Benek as a senior member of its Project Management team in the greater Philadelphia region. Ms. Benek is an accomplished project manager with over 10 years of commercial real estate experience, specializing in project coordination, programming, space planning, design details and interior design.

In her role at NKF, Ms. Benek will focus on working closely with the end-user to understand their culture, expectations and full scope of each requirement. Her deep experience in programming and developing budget estimates will also ensure all planning and construction cost efficiencies are captured at the early stages of the engagement when budget expectations are being set. With this tried-and-true process, all critical milestones are met, vendors are coordinated seamlessly during the installation process, and minimal distractions are guaranteed on move date.

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New Warehouse Deliveries Drive Absorption Gains

Amanda Nardi

Wayne, PA (August 6, 2018) — Newmark Knight Frank (NKF) released its second quarter 2018 industrial market reports for Greater Philadelphia and the I-81/78 Corridor. The combined markets closed the period with 1.3 million square feet of occupancy gains. Despite the positive absorption, the combined vacancy rate rose 50 basis points to 6.4 percent as six properties were delivered. Of the six, five warehouse properties delivered this quarter along the I-81/78 Corridor totaling 3.7 million square feet. Three of the buildings delivered vacant, for a total of 2.4 million square feet. The sixth building, a 1.1 million-square-foot warehouse located in the Southeastern market at 270 Midway Road in Berks County, also delivered vacant.

The Southern New Jersey market recorded 278,921 square feet in positive absorption, rebounding from rare negative absorption in Q1 2018. At midyear, the market posted 106,007 square feet in occupancy gains. Quarter-over-quarter, overall vacancy fell 20 basis points to 3.8 percent, a near record low for the market. The Burlington County submarket led the way with 174,684 square feet in positive quarterly absorption, followed by Camden County with 81,996 square feet and Gloucester County with 22,241 square feet. Both Burlington County and Camden County fell 30 basis points to 3.2 percent, while Gloucester County remained steady at 5.4 percent. The two largest moves were Revel Nail, which occupied 115,681 square feet at 90 Coles Road in Camden County and Ta Chen International occupying 96,529 square feet at 1651 River Road in Burlington County. Additionally, Amazon leased 1.0 million square feet of warehouse space at 1101 East Pearl Street. NKF Senior Managing Director Kurt Montagano said, “The market is stretched tight between e-commerce firms serving the region and companies out of New York and Northern New Jersey searching for cheaper warehouse space. Expect rates to continue to rise under this demand pressure.”

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Comcast Technology Center Opens

Amanda Nardi

Philadelphia, PA (July 24, 2018) — Newmark Knight Frank (NKF) released its second-quarter 2018 office reports for the greater Philadelphia region. The reports detail no slowdown in activity for Southeastern Pennsylvania, while the delivery of the Comcast Technology Center results in the Philadelphia Central Business District (CBD) recording over 1.0 million square feet of positive absorption. Both Delaware’s suburban submarkets and the Southern New Jersey market struggle with rising vacancy.

Southeastern Pennsylvania recorded 709,719 square feet of positive absorption for the first half of the year and surpassed 2017’s year-end absorption by 148,000 square feet. Overall vacancy decreased 60 basis points quarter-over-quarter to 14.0 percent. USSC Group’s expansion into 300,000-square-foot at 101 Gordon Drive, located in the Exton/Malvern submarket, accounted for most of the quarter’s 355,000 square feet of absorption. On the downside, some suburban tenants decided to shed excess space, which pushed year-over-year sublease availability up 10 basis points to 2.0 percent. In the Fort Washington submarket, T-Mobile relocated and downsized from 45,000 square feet at 500 Virginia Drive to 24,112 square feet at 475 Virginia Drive. Transamerica, located in the Exton/Malvern submarket, outsourced a number of business line jobs to a third-party provider, downsizing from 90,300 square feet at 300 Eagleview Boulevard to 9,500 square feet at 350 Eagleview Boulevard.

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New Warehouse Deliveries Drive Absorption Gains

Amanda Nardi

Philadelphia, PA (January 24 2018) — Newmark Knight Frank (NKF) released its fourth quarter 2017 reports for the Greater Philadelphia and the I-81/78 Corridor industrial markets. The combined markets closed the fourth quarter with 2.2 million square feet of occupancy gains and 15.9 million square feet of positive absorption for the year. Quarter-over-quarter, the combined vacancy rate stayed steady at 6.8 percent as the market, especially in Southeastern Pennsylvania, remained extremely tight. Several buildings also delivered this quarter, the majority of which were warehouse/distribution space: two warehouse buildings delivered in the Southern New Jersey market totaling 0.67 million square feet, and two warehouse buildings delivered in the I-81/78 Corridor market totaling 1.62 million square feet. The I-81/78 Corridor continued to capture the majority of the construction pipeline; 11.0 million square feet of the combined markets’ 16.0 million square feet under construction, is warehouse space.

The Southern New Jersey market recorded only 310,194 square feet in positive absorption, the lowest quarterly absorption in two years. Still, the year-to-date absorption of 5.8 million is almost equivalent to 2016’s 5.9 million. The Burlington and Camden County submarkets drove absorption this quarter, posting occupancy gains of 192,716 square feet and 181,048 square feet, respectively. The Gloucester County submarket posted negative absorption of 63,570 square feet. Quarter-over-quarter, overall vacancy in the market increased 30 basis points to 4.3 percent. While vacancy in Burlington County stayed level at 3.6 percent and Camden County fell 50 basis points to 2.9 percent, the Gloucester County submarket rose 190 basis points to end the year at 7.3 percent. The rise in vacancy was attributed to 480,480 square feet being vacated at 395 Pedricktown Road; Kenco Logistics plans to occupy the property in its entirety in early 2018. Kurt Montagano, NKF senior managing director, had this to say on the health of the market, “Activity remains high, driven mostly by logistics and e-commerce companies. Rental rates are also climbing, but remain low enough to attract companies from Northern New Jersey as even higher rates there drive businesses south.”

In the Delaware market, tenant activity picked up again in the warehouse sector after a slow third quarter. The sector reported 144,920 square feet in positive absorption, lowering the vacancy rate by 130 basis points to end at 7.3 percent. With the increased activity, warehouse and R&D/flex lease rates both rose, moving up $0.26 to $4.81 per square foot and $0.25 to $6.08 per square foot, respectively. Overall rents in Delaware rose $0.10 to $4.54 per square foot as general industrial rents declined along with activity.

Southeastern Pennsylvania’s vacancy rate remained at 6.8 percent for the sixth consecutive quarter. According to Eustace Wolfington, NKF senior managing director, “While activity in the market remains high, industrial sales and leasing is hampered by a lack of product. Build-to-suit opportunities exist, but for prospects with immediate needs, the timing is problematic.” The fourth quarter closed with 393,863 square feet in positive absorption for the market, but only 134,804 square feet for the year. Lancaster and Montgomery Counties posted the largest quarterly occupancy gains, with 207,945 square feet and 203,249 square feet of positive absorption respectively. Large movements included Steel-Tec occupying 43,979 square feet at 167 Greenfield Road in Lancaster County and Provident Marketing occupying 132,405 square feet at 330 S Warminster Road in Montgomery County. While vacancy has remained flat, industrial lease rates have continued to rise, reaching a new high of $5.47 per square foot, an increase of $0.13 per square foot over the previous quarter. The warehouse/distribution sector was the primary driver, as e-commerce demand increased the average lease rate $0.65 to end the year at $4.69 per square foot.

Vacancy for I-81/78 Corridor warehouse/distribution properties stayed steady in the fourth quarter of 2017 to end the year at 6.7 percent, down 20 basis points from the end of 2016, despite the addition of 9.2 million square feet of new space. Tim Brogan, NKF senior managing director, noted, “Construction continued steadily in the I-81/78 Corridor warehouse market, just barely keeping up with demand. 1.6 million square feet delivered this quarter, with 11.0 million in the pipeline, all of which slated for warehouse/distribution space as the e-commerce boom continues.” Rents for warehouse product rose slightly, going up $0.07 to end the fourth quarter at $4.38 per square foot. Overall, the Central Pennsylvania submarket recorded 1.2 million square feet of positive absorption as Kohler occupied one million square feet at 225 Allen Road. Absorption was smaller in the Lehigh Valley and Northeastern Pennsylvania submarkets, but was still positive. Lehigh Valley posted 169,349 square feet in occupancy gains, attributed to Air Liquide’s occupying 105,000 square feet at 1379 South Delaware Drive, while Northeastern PA had just 24,855 square feet of absorption.

About Newmark Knight Frank
Newmark Knight Frank (“NKF”), operated by Newmark Group, Inc. (“Newmark”), is one of the world’s leading commercial real estate advisory firms. Newmark has over 4,600 employees in over 120 offices. Together with London-based partner Knight Frank and independently-owned offices, NKF’s 15,000 professionals operate from more than 400 offices in established and emerging property markets on six continents. With roots dating back to 1929, NKF’s strong foundation makes it one of the most trusted names in commercial real estate. We offer a complete suite of services and products for both owners and occupiers across the entire commercial real estate industry.

Our investor/owner services and products include investment sales, agency leasing, property management, valuation and advisory, diligence, underwriting and, under trademarks and names like Berkeley Point and NKF Capital Markets, government sponsored enterprise lending, loan servicing, debt and structured finance and loan sales. Our occupier services and products include tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate services consulting, project management, lease administration and facilities management. We enhance these services and products through innovative real estate technology solutions and data analytics designed to enable our clients to increase their efficiency and profits by optimizing their real estate portfolio. We have relationships with many of the world’s largest commercial property owners, real estate developers and investors, as well as Fortune 500 and Forbes Global 2000 companies. For further information, visit www.ngkf.com.

Newmark, which is listed on the NASDAQ Global Select Market under the symbol “NMRK”, is a publicly traded subsidiary of BGC Partners, Inc. (“BGC”), a leading global brokerage company servicing the financial and real estate markets. BGC’s common stock trades on the NASDAQ Global Select Market under the ticker symbol “BGCP”. BGC also has an outstanding bond issuance of Senior Notes due June 15, 2042, which trade on the New York Stock Exchange under the symbol “BGCA”.

Discussion of Forward-Looking Statements about Newmark

Statements in this document regarding Newmark that are not historical facts are “forward-looking statements” that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. Except as required by law, Newmark undertakes no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Newmark’s and BGC’s Securities and Exchange Commission filings, including, but not limited to, any updates to such risk factors contained in subsequent Forms 10-K, 10-Q, or Forms 8-K.

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