Vacancy Remains at High Levels in the Philadelphia Central Business District

Philadelphia, PA (October 4, 2017) — Newmark Knight Frank (NKF) has released its third quarter 2017 office reports for the greater Philadelphia region. The reports detail how downsizing by tenants within the Philadelphia Central Business District (CBD), and fewer regional companies relocating to the CBD this year, kept vacancy at high levels. Market fundamentals weakened in both the Southern New Jersey and Delaware office markets, but Suburban Philadelphia continues to record gains in occupancy.

The CBD recorded its highest level of vacancy since the third quarter of 2014, closing the third quarter of 2017 at 13.7 percent. Tenants such as PNC, Wells Fargo and Verizon continued to downsize in the CBD. Downtown has been slow to absorb these large blocks of vacant space. Wayne Fisher, NKF executive managing director relates, “The number of tenants relocating from the suburbs to downtown has dwindled. Also, a decline in leasing activity by co-working firms and Comcast have failed to move space off of the market so far this year.” Year-over-year, Class A vacancy increased 250 basis points to 13.1 percent; over the same time period, the average direct rental rate for Class A space declined by $0.31 per square foot to $32.78 per square foot.

Click here to read the full press release.

NKF Represents Seller in 13± Acre Land Sale of 7777 State Road, Philadelphia

Wayne, PA (September 14, 2017) — Newmark Knight Frank (NKF) is pleased to announce it has completed the $1,500,000 land sale of 7777 State Road in Philadelphia. Located along the State Road industrial corridor, the 13± acre site is adjacent to the Delaware River, and is between the Cottman Avenue and Academy Road interchanges of I-95. Neil Shupak and Justin Bell of NKF’s Wayne, PA Industrial team represented the seller, Wilson State, LLC in the land sale.

The new owner plans to use the site to expand its scrap metal processing, recycling and shipping activities. A legislation to change the zoning of 7777 State Road from mixed-use to the newly proposed use of industrial build to suit was recently introduced by the City Councilman.

Read full press release.

Newmark Knight Frank Announces Agreement to Acquire Six Integra Realty Resources Offices

Offices to be Acquired Include New York/New Jersey, Philadelphia, Wilmington, Baltimore, D.C., Atlanta

New York, NY (September 5, 2017) — Newmark Knight Frank (NKF) is pleased to announce that it is continuing the ground-up construction of its Valuation & Advisory practice with thoughtful selection of some of the most prominent professionals and practices in the market, with an agreement to acquire the assets of six Integra Realty Resources offices, including New York/New Jersey, Philadelphia, Wilmington, Baltimore, Washington D.C., and Atlanta. The acquisitions were led by NKF Chief Executive Officer, Barry Gosin and Valuation & Advisory President, John Busi.

The acquisitions will mark another pivotal moment for the firm, which has recently announced its agreement to acquire leading commercial real estate finance company Berkeley Point Financial, has made several key hires in its Capital Markets business segment, and continues to concentrate on its near- and long-term future. The IRR offices will augment a rapidly expanding Valuation & Advisory practice group, which has grown significantly in the past year.

Click here to read the full press release.

NKF Arranges Sale of the Callowhill Center in Philadelphia, Pennsylvania for $20.1 Million

Philadelphia, PA (August 9, 2017) — Newmark Knight Frank (NKF) today announced the sale of 421 North 7th Street in Philadelphia, a two-building, 188,167-square-foot property, situated on 2.47 acres. The long-time home of the iconic Electric Factory was sold for $20.1 million.

NKF’s capital markets team comprising Mike Margolis, Dave Dolan, and Dave Garonzik, along with area leasing experts Jeff Tertel and Jim Egan of NKF, represented the seller, Callowhill Center Associates, LP in the sales transaction. The buyer, Arts & Crafts Holdings, chose the location based on The Electric Factory’s 20-year tenancy and long-term lease, which lends to the creative atmosphere at the property. Additionally, the parking lot allows for multiple development sites under the new CMX-3 zoning overlay.

Read full press release. 

NKF Represents Seller in Sale of 212 Church Road in Upper Gwynedd Township

Wayne, PA (July 19, 2017) — Newmark Knight Frank (NKF) announced today that Neil Shupak and Justin Bell, of NKF’s suburban Philadelphia office, represented the seller, Patriarch VIII, LP, a part of Patriarch Management, LP in the sale of 212 Church Road for $3,700,000. The 94,000 square foot one-story building is situated on 8.5 acres adjacent to the Pennbrook Business Center. Gorman & Company, the new owner, has plans to convert the building into a high-end, climate controlled self-storage facility. The building’s attractive exterior façade, large parking field, ceiling height and proximity to a densely populated residential market make it ideal for a conversion to self-storage.

Patriarch Management, the seller, owns several other buildings in and around the Pennbrook Business Center, including the building next door that the previous tenant of 212 Church Road, ICON Clinical Research, now occupies. In addition, Patriarch owns high-end office, warehouse, a neighborhood convenience center and multifamily communities in Pennsylvania.

Click here to learn more.

Warehouse Rents Rise with Increased Demand

Philadelphia, PA (July 17, 2017) — Newmark Knight Frank (NKF) released its second-quarter 2017 reports for the Greater Philadelphia region and the I-81/78 Corridor industrial markets this week. Greater Philadelphia’s industrial market closed the second quarter of the year with 540,000 square feet in positive absorption. While the vacancy rate stayed level from the first quarter of 2017, it has dropped 110 basis points from one year ago to 6.8 percent. Several warehouse buildings also delivered, while the I/81-78 Corridor continued to capture the majority of the construction pipeline.

The Southern New Jersey market accounted for 450,000 square feet in occupancy gains. The Burlington County submarket contributed the bulk of the gains, 500,000 square feet of absorption with Quality Packaging moving into 377,440 square feet at 2030 Route 130 in Florence, New Jersey. Vacancy in Southern New Jersey’s warehouse sector remained at record low levels in the second quarter of the year.

Click here to read the full press release.

Rents for Greater Philadelphia Have Not Yet Peaked

Philadelphia, PA (June 29, 2017) — Newmark Knight Frank (NKF) released its second quarter 2017 office reports for the Greater Philadelphia region. The reports detail increased rental rates in the Philadelphia suburbs and Philadelphia Central Business District (CBD) with no sign that rents will peak soon. There was also positive absorption in Greater Philadelphia and the New Castle County (Delaware) markets, but occupancy growth stalled in Southern New Jersey.

Vacancy in the Philadelphia suburbs declined by 20 basis points from the first quarter of 2017 to 15.7 percent. The King of Prussia submarket showed considerable occupancy growth, posting 394,588 square feet in positive absorption. During this period, Highway to Health occupied a newly delivered 110,550-square-foot building located at 933 First Avenue and Hartford Funds moved into 75,922 square feet at 690 Lee Road. Both tenants relocated from Radnor.

Click here to read the full press release.

NKF Arranges Sale of Premier Retail/Mixed-Use Development Site in Rehoboth Beach, Delaware for $13.5 Million

Wilmington, DE (June 20, 2017) — Newmark Knight Frank (NKF) today announced the sale of the 10.3-acre; 448,668-square-foot parcel at the southeast corner of the Coastal Highway (Route 1) and Holland Glade Road, in Rehoboth Beach, Sussex County, Delaware. The $13.5 million sale represents the last large commercial land tract along the Route 1 corridor between Lewes and Rehoboth Beaches. Mike Margolis, Dave Dolan and Neal Dangello of NKF represented the seller, the Corrado Family, LLC in the sales transaction. Coastal Station Development Co., LLC were the buyers.

The site will be redeveloped with the first phase to begin immediately and will include a Royal Farms convenience store and Iron Hill Brewery and Restaurant (planned to open in summer 2018).

Click here to read the full press release.