Philadelphia Office Reinventing Itself To Accommodate Growth Industries
The Philadelphia office market's hot, but it isn't peaking. It's transforming itself into something new as growth industries and Millennials they employ increasingly populate space, office market experts say. That's why we're excited to present Philadelphia's Office Revolution next Thursday, Feb. 11, at the Rittenhouse Hotel.
For instance, MRP Realty managing director Charley McGrath notes that 64% of non-natives who arrive in the city for higher education choose to remain in the Philadelphia region after graduation, according to a recent survey by Campus Philly. That provides a steady supply of well-educated workers for city employers and occupants for Center City’s expanding housing options, and creates new opportunities for property owners who can adapt their buildings to the new generation of workers. Charley's snapped with MRP SVP Mike Cassidy at Griffin, a 217-unit apartment building the company will complete next month.
This week MRP acquired a majority interest in 400 Market St, 325 Chestnut St, 111 S Independence Mall East (the Bourse Building, pictured) and 400 Ranstead St (Bourse Garage), a portfolio of 702k SF of office, retail and parking, from the family that had owned the properties for more than 30 years. Charley tells us that MRP intends to do a comprehensive renovation on all the assets over the next 18 months, renovating the common areas, amenities and streetscapes while capitalizing on the portfolio’s strong location in Market Street East within Center City to reposition and lease up the portfolio.
Two growth sectors of the local economy in particular will benefit office space in the city, Charley adds. For one, Philadelphia’s biomedical and pharmaceutical industries have brought 14 major pharmaceutical firms and nearly 100 biotech firms to the area in recent years. Also, the metro area’s strong education/health services industry is playing a role in making the region a prominent locale for the advanced manufacturing sector.