PHILADELPHIA | American Commerce Center | 1,510' Pinnacle / 1,210' Roof | 63 FLOORS - Page 70

SSBMEXPERT · #**1381** Posted **Mar 30, 2009, 8:11 PM**

Quote:

Originally Posted by Chriss

Anyone have photos of the signs?

From the Philly VII development thread...

Also, there is another quick snapshot of the sign up on phillyskyline.com. Other than that, I know of nothing else right now.

philadelphiathrives · #**1382** Posted **Mar 31, 2009, 2:59 AM**

Quote:

Originally Posted by graupner

Projects are beeing cancelled all across the world and a promoter wants to build a 63 floors office tower close to Ground-Zero of the global credit crunch ?

He's either brave or running on TARP money...

Philadelphia has a very diverse economy, the downtown office market isn't dominated by financial companies. This area has plenty of medical, pharmaceutical, engineering, telecommunications, aerospace, and service companies, in addition to financial companies, headquartered here. In fact, the two companies rumored to be interested in the site are GlaxoSmithkline, which has its North American HQ here, and Verizon, which used to be headquartered here a few years ago.

And what's more, the vacancy rate in downtown is around 10%, which is considered low during a normal economy and incredible during a recession. Right now, there are no buildings in downtown that have enough space for a large company to expand or for a large company to move in to. So, a new building that would be completed in 3 to 4 years would seem very good for the market.

We Got Five · #**1383** Posted **Mar 31, 2009, 12:24 PM**

Quote:

Philadelphia has a very diverse economy, the downtown office market isn't dominated by financial companies. This area has plenty of medical, pharmaceutical, engineering, telecommunications, aerospace, and service companies, in addition to financial companies, headquartered here. In fact, the two companies rumored to be interested in the site are GlaxoSmithkline, which has its North American HQ here, and Verizon, which used to be headquartered here a few years ago.

True, we're not dominated by financial companies. However, I would not call us diverse by any stretch. We have 1 major Pharma company (and we're no longer the NA HQ - that got stripped about a year ago when they moved some operations to North Carolina). Maybe you're including south Jersey and the northern/western suburbs in your response but center city is far from diverse. If you are including the burbs then yes I would agree with you. Our strength lies with our Health Systems and Education sector. We desperately need to grow the core to include an array of different industries. Would a Verizon move be so bad for Comcast? Competition is a great thing! Would another Pharma company (Teva? although highly unlikely) be interested in center city? Until somebody not named GSK shows interest, it's highly unlikely.

Swinefeld · #**1384** Posted **Mar 31, 2009, 3:44 PM**

Quote:

Originally Posted by We Got Five

Or he has a lead tenant(s) in play.

Right now American Commerce Center's main focus is on landing tenants both major and minor. Keep hope alive!

Cro Burnham · #**1385** Posted **Mar 31, 2009, 3:45 PM**

Quote:

Originally Posted by We Got Five

However, I would not call us diverse by any stretch.

Not to be argumentative, but I disagree - Philadelphia's economy, both inside and outside the City - is almost too diversified. Other than pharmaceuticals, there is virtually no industry or employer that could really be described in any way as dominant. Almost of all of largest corporate offices in the region represent different industries: chemicals, pharma, finance, petroleum, manufacturing, wholesaling/retailing, technology, food processing, communications, professional.

Look at the names of the top companies with national HQ or large corporate presence, almost all in different industries:

Comcast, Sunoco, Crown Cork & Seal, Cigna, Rohm & Haas, Lincoln National, GSK, Delaware Investments, SAP, Siemens, Subaru, Atochem, FMC, Amerisource, ACE, Sovereign Bank, Wachovia, PNC, Wyeth, Astra Zeneca, Unisys, Campbells, GE Aerospace, L3, TD Bank, Boeing, Vanguard, Radian, Pep Boys, Advanta, etc . . .

None of these big companies is that big compared to the real giants - the real backbone of industry here is a diverse patchwork of middle market firms and professional services, not Fortune 100 companies.

We Got Five · #**1386** Posted **Mar 31, 2009, 6:58 PM**

Quote:

Not to be argumentative, but I disagree - Philadelphia's economy, both inside and outside the City - is almost too diversified. Other than pharmaceuticals, there is virtually no industry or employer that could really be described in any way as dominant. Almost of all of largest corporate offices in the region represent different industries: chemicals, pharma, finance, petroleum, manufacturing, wholesaling/retailing, technology, food processing, communications, professional.

Look at the names of the top companies with national HQ or large corporate presence, almost all in different industries:

Comcast, Sunoco, Crown Cork & Seal, Cigna, Rohm & Haas, Lincoln National, GSK, Delaware Investments, SAP, Siemens, Subaru, Atochem, FMC, Amerisource, ACE, Sovereign Bank, Wachovia, PNC, Wyeth, Astra Zeneca, Unisys, Campbells, GE Aerospace, L3, TD Bank, Boeing, Vanguard, Radian, Pep Boys, Advanta, etc . . .

None of these big companies is that big compared to the real giants - the real backbone of industry here is a diverse patchwork of middle market firms and professional services, not Fortune 100 companies.

Yes you are correct, but the original discussion was centered on center city, not the region as a whole.

philadelphiathrives · #**1387** Posted **Mar 31, 2009, 7:15 PM**

Quote:

Originally Posted by Cro Burnham

Look at the names of the top companies with national HQ or large corporate presence, almost all in different industries:

Comcast, Sunoco, Crown Cork & Seal, Cigna, Rohm & Haas, Lincoln National, GSK, Delaware Investments, SAP, Siemens, Subaru, Atochem, FMC, Amerisource, ACE, Sovereign Bank, Wachovia, PNC, Wyeth, Astra Zeneca, Unisys, Campbells, GE Aerospace, L3, TD Bank, Boeing, Vanguard, Radian, Pep Boys, Advanta, etc . . .

None of these big companies is that big compared to the real giants - the real backbone of industry here is a diverse patchwork of middle market firms and professional services, not Fortune 100 companies.

Whatever...

!

Cro Burnham · #**1388** Posted **Apr 1, 2009, 2:02 AM**

Quote:

Originally Posted by We Got Five

Yes you are correct, but the original discussion was centered on center city, not the region as a whole.

I'm surprised you wouldn't say the same for Center City - it is not heavily dependent on any single industry or major company as far as I know.

Don098 · #**1389** Posted **Apr 1, 2009, 3:12 AM**

Quote:

Originally Posted by Cro Burnham

Not to be argumentative, but I disagree - Philadelphia's economy, both inside and outside the City - is almost too diversified.

Maybe you meant that the business pool isn't very deep in Philadelphia - in the sense that there are a ton of mid-range companies without many top level ones to anchor the city? If I liken it to hockey, are you saying that we have some of the best 2nd and 3rd lines, but we severely lack that next tier of talent for our first line?

You forgot Pew Trust, btw. I'd say they're one of the most important centers of research in Philadelphia with a MAJOR national presence...I'm talking major. However, I don't think they're going to remain headquartered in Philly for too long. The Center down here in DC is growing like mad, and it would make much more sense putting it down here next to the federal government. But still something to very proud of in Philly!!

hammersklavier · #**1390** Posted **Apr 1, 2009, 8:44 PM**

I think Pew would prefer to stay in Philly, if it could be lured to stay here. Cira South offices, anyone?

slow-v6 · #**1391** Posted **Apr 2, 2009, 5:05 AM**

Quote:

Originally Posted by Cro Burnham

Not to be argumentative, but I disagree - Philadelphia's economy, both inside and outside the City - is almost too diversified. Other than pharmaceuticals, there is virtually no industry or employer that could really be described in any way as dominant. Almost of all of largest corporate offices in the region represent different industries: chemicals, pharma, finance, petroleum, manufacturing, wholesaling/retailing, technology, food processing, communications, professional.

Look at the names of the top companies with national HQ or large corporate presence, almost all in different industries:

Comcast, Sunoco, Crown Cork & Seal, Cigna, Rohm & Haas, Lincoln National, GSK, Delaware Investments, SAP, Siemens, Subaru, Atochem, FMC, Amerisource, ACE, Sovereign Bank, Wachovia, PNC, Wyeth, Astra Zeneca, Unisys, Campbells, GE Aerospace, L3, TD Bank, Boeing, Vanguard, Radian, Pep Boys, Advanta, etc . . .

None of these big companies is that big compared to the real giants - the real backbone of industry here is a diverse patchwork of middle market firms and professional services, not Fortune 100 companies.

Isnt that a good thing being diverse? gives us a better chance at landing more companies right? and I dont know what is bigger then Wachovia/WellsFargo, Comcast, Pepboys, Boeing, L3, and GE in there industry? Maybe Bank of America for Wachovia, Lockheed Martin for L3. When I think autoparts I think Pepboys as the biggest. when I think Aircraft I think of Boeing as the biggest, Same with GE. What about Verizon and Aramark? are they just names of buildings in the city or are they hq's??

slow-v6 · #**1392** Posted **Apr 2, 2009, 5:13 AM**

Quote:

Originally Posted by Cro Burnham

I'm surprised you wouldn't say the same for Center City - it is not heavily dependent on any single industry or major company as far as I know.

What do you mean by dependant on a single industry? Is Tourism a industry? Are resturants an Industry? Are arts an industry? You mean Like Detroit with GM ( automotive) industry were if it falls the city really hurts from it?

Cro Burnham · #**1393** Posted **Apr 2, 2009, 6:03 AM**

Quote:

Originally Posted by slow-v6

What do you mean by dependant on a single industry? . . . You mean Like Detroit with GM ( automotive) industry were if it falls the city really hurts from it?

that's exactly what i mean - or nyc with finance, la with entertainment, dc with government, houston with oil, seattle or sf with hi-tech, pitt with steel (in the old days), hartford with insurance, boston with education, wilmington with dupont and credit cards, vegas with gambling, miami with tourism, milwaukee with beer, etc., etc., etc.

by comparison, chicago, philly, atlanta, dallas, st. louis are more diversified

it's neither good nor bad.

Don098 · #**1394** Posted **Apr 2, 2009, 1:07 PM**

You take away healthcare from Philadelphia and there's not much left at all. What's the stat again? 1 out of 2 people in Philadelphia works for the healthcare industry in some shape or form? Healthcare is Philly's steel.

Pennsgrant · #**1395** Posted **Apr 2, 2009, 2:15 PM**

Quote:

Originally Posted by Don098

You take away healthcare from Philadelphia and there's not much left at all. What's the stat again? 1 out of 2 people in Philadelphia works for the healthcare industry in some shape or form? Healthcare is Philly's steel.

The only cities with more Fortune 500 companies than Philly are NYC, Chicago and the upstart sunbelt cities of Houston,Dallas and Atlanta.Keep in mind that Dallas is 3x Houston 4x times the land area of Philadephia which skews the statistics significantly.

Fortune 500 Companies

Philadelphia

Sunoco 56
Comcast 79
Cigna 141
Aramark 216
Rohm & Haas 295
Crown Holdings 325
Sovereign Bancorp 469

Boston

Liberty Mutual 94
State Street Corp. 225

Los Angeles

Northrop Grumman 76
Occidental Petroleum 123
KB Home 340
Reliance Steel 345
CB Richard Ellis 405

lawfin · #**1396** Posted **Apr 2, 2009, 5:58 PM**

Quote:

Originally Posted by slow-v6

Isnt that a good thing being diverse? gives us a better chance at landing more companies right? and I dont know what is bigger then Wachovia/WellsFargo, Comcast, Pepboys, Boeing, L3, and GE in there industry? Maybe Bank of America for Wachovia, Lockheed Martin for L3. When I think autoparts I think Pepboys as the biggest. when I think Aircraft I think of Boeing as the biggest, Same with GE. What about Verizon and Aramark? are they just names of buildings in the city or are they hq's??

Boening's HQ is in Chicago not Philly

winxs · #**1397** Posted **Apr 2, 2009, 6:31 PM**

Quote:

Originally Posted by lawfin

Boening's HQ is in Chicago not Philly

The previous posts did not say it was. It stated that those companies have either their HQ or a large corporate presence in the area. Boeing DOES have a large Integrated Defense Systems contract center located in Philadelphia employing over 4,300. Their Chinook, V-22, FCS, Modeling Simulation and Analysis Center (MSAC), Advanced Rotorcraft and Aerospace Support programs are all based in the Philadelphia region (Ridley Park). Also located in Philly is their legal counsel team amongst other smaller Boeing operations.

QuarterMileSidewalk · #**1398** Posted **Apr 8, 2009, 4:58 AM**

^It's a bit off-topic, but in the absence of frequent updates about the building, I'm curious for some more details on how those economies are similar or not to Philadelphia's.

hammersklavier · #**1399** Posted **Apr 9, 2009, 3:37 PM**

Our hyper-compressed central business district mitigates in its favor, though. And don't forget that some 90% of our office space is currently rented out (even in this economy). Don't forget, when Comcast was built, analysts forecasted that the company's movement of its resources into the new building would leave a lot of open office space in the city. Didn't happen--it was all snapped right up. Also don't forget that this is meant to be a pride-of-place headquarters / first-level subsidiary for a (multi)national firm, a type of company we have quite a few of (Comcast, Sunoco, Cigna, GlaxoSmithKline, etc.).

Cro Burnham · #**1400** Posted **Apr 9, 2009, 3:56 PM**

Right now, it's all a question of tenant credit and the rent premium tenant prospects would be willing to pay over market to be in the building.

Comcast Center is possible only because Comcast was willing to pay a 25%+ premium over standard Philadelphia CBD Class A market rent to have their own signature HQ tower.

ACC would only be possible if the main tenants were highly creditworthy and willing to pay similar premiums.

It's certainly possible.