Brandywine Pivots From Life Sciences To Office At Schuylkill Yards Tower, Signs First Tenant
Even before the pandemic, life sciences had overtaken office as the most desirable asset class in Philly, to the extent that building owners were seeking conversions wherever possible.
Now, the inverse has happened: Brandywine Realty Trust signed an office tenant to its recently completed West Tower at Schuylkill Yards and is marketing the rest of the building's commercial space as office, the Philadelphia Business Journal reports. Law firm Goodwin Procter signed a 12.5-year lease for 31.5K SF with an option to expand in the building.
Goodwin, one of the largest law firms in the U.S., only opened its Philadelphia office nine months ago in a temporary space within One Commerce Square, another Brandywine-owned office building at 2005 Market St., the PBJ reported. Goodwin's client base is heavy on life sciences and healthcare companies, making University City a better fit for its Philly base than Center City.
The firm will take the entire eighth floor of the West Tower at 3025 John F. Kennedy Blvd., the highest in its 200K SF commercial podium, and part of the seventh floor, PBJ reported. Goodwin is expected to take a year for internal fit-out and move in the second half of next year. It has a three-days-per-week policy for in-person work.
On top of that podium is an 18-story, 326-unit apartment tower called Avira, which opened for leasing this summer. Avira, which Brandywine co-developed with the Gotham Organization, has signed 45 residential leases to date, the PBJ reported.
Even though the office leasing market remains depressed amid widespread tenant downsizing, the flood of demand for life sciences never fully materialized before the economy turned. Rising interest rates sapped startups of new venture capital funding, and life sciences landlords are now targeting 2025 as the next big year for the market in Philly.
When the master plan for Schuylkill Yards was released in 2016, office was presumed to be the largest commercial component. By the time Brandywine broke ground on the West Tower in 2021, it pivoted to focusing on life sciences, as had virtually the rest of new construction in Philly.
Brandywine never explicitly marketed the podium of the West Tower as a lab or life sciences facility, spokesperson Katie Schaad said in a statement provided to Bisnow after this article was published.
Though the West Tower now looks to be back to Brandywine's earliest vision for it, the REIT isn't backing away from life sciences in general. It has converted a sizable portion of its Cira Centre office building at 2929 Arch St. to lab incubator space, and is constructing a 400K SF life sciences-focused development at 3151 Market St., with completion penciled in for late next year or early 2025.
CORRECTION, SEPT. 11, 6 P.M. ET: This article has been updated with clarification of Brandywine's plans for 3025 John F. Kennedy Blvd. and 3151 Market St. provided by spokesperson Katie Schaad.
