KEYSTONE PHILLING UP?

Sometimes even a hugely established Philadelphia CRE firm goes across state to develop a new office building. (Variety is the spice of life, and travel is the herbs.)
Keystone Property Group could move forward with a new 100k SF spec office building in Pittsburgh as part of its 550k SF Keystone Summit Business Park. And Keystone's Development SVP Richard Gottlieb tells us the company is in talks with a potential tenant that would lease half the building. The company also went into Wilmington, Del., and purchased a tower out of bankruptcy for $22M—919 Market Street, a building it actually owned six years ago. Keystone is actively scouting the Northeast and even the South for other investment deals.
We “borrowed” a US spy drone to grab this image of Keystone Summit. Closer to home, Richard says leasing activity, particularly among the bread-and-butter tenants, has picked up. The company recently leased 25k SF at Devon Square and 28k SF at its King of Prussia property in a total of 11 small deals. “They add up,” Richard says. As for future buys in Philly, Richard says Keystone could add 2M or 3M SF to its local portfolio. But he says the market is still a struggle. “For our taste, there's not enough activity in the marketplace right now.”

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