Urban Cores Get The Glory. Burbs Get The Tenants.
To clarify our headline, yes, urban cores do get tenants too. But suburban office leasing is looking strong and should thrive beyond 2016, says Keystone Property Group SVP Rich Gottlieb. You can hear more about why at Bisnow's Future of the 'Burbs event on Jan. 26 at 502 W Germantown Pike in Plymouth Meeting. Sign up today! We asked two of our speakers (including Rich) for a preview.
Rich says more companies are making leasing decisions based on "access to a lively and invigorating work setting, and we believe that this can be achieved by reimagining once-outdated suburban assets."
In its first deal of the new year, Keystone closed on its acquisition of the 245k SF One Belmont Ave in Bala Cynwyd for an estimated $46M. Keystone plans to make $13M in upgrades to the property, also known as the GSB building (the Germantown Savings Bank used to occupy it). The company also owns One Presidential Blvd, 150 Monument Road, 225 City Ave and 15 King’s Grant, all in Bala Cynwyd, and a lot of other suburban office properties.
Core suburban submarkets are certainly still landlord favorable, JLL SVP Patrick Gallagher tells us. "This is causing increased tenant activity elsewhere and it will continue throughout 2016. Adjacent submarkets, along with specific development and redevelopments, will receive the most attention from tenants." Please join us to hear more about the suburbs on Jan. 26. Sign up here for the Future of the 'Burbs.
Feeling nostalgic? Find coverage from our 2014 Future of the Suburbs event here.