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The office leasing market in Philadelphia has made a return from the summer doldrums.
Big Four accounting firm KPMG signed a lease for a 97K SF office at 1735 Market St., which it will occupy when its 134K SF lease at 1601 Market St. expires next June, the Philadelphia Business Journal reports. KPMG will occupy the entirety of the third, fourth and sixth floors of the 54-story tower, also known as the BNY Mellon Center.
Both 1601 and 1735 Market have New York-based owners: Silverstein Properties for 1735 Market and APF Properties for 1601 Market. Based on occupancy data reported in April by PBJ, KPMG will bring the 434K SF 1735 Market to virtually full occupancy.
The deal is the largest new office lease to be signed in the Philly region since Chubb agreed to occupy a 438K SF build-to-suit office from Parkway Corp., which began construction early this year.
The departure of KPMG, the largest accounting firm in Philly by employee count, per PBJ, will leave a gaping vacancy at the 704K SF 1601 Market. APF's website listed less than 60K SF of available space in the building.
Updated amenity offerings and transit access were among the biggest factors cited by KPMG's Dave Greed in selecting a new Philly office for the firm, PBJ reported. Silverstein spent over $20M on building improvements in 2021.
The deal follows a summer in which more downtown office buildings experienced debt distress than major new leases. KPMG's lease comes on the heels of law firm Goodwin Procter last week agreeing to be the first office tenant at Brandywine Realty Trust's West Tower at Schuylkill Yards.
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