PHILADELPHIA | Highrise Development Thread IX

[1487]

Lots of interesting info in here about the office market. A lot of action is taking place behind the scenes. The Market East project is supposed to start next month. We shall see.

http://sshrealestate.com/files/2014MidYearReport.pdf

[summersm343]

Originally Posted by 1487

Lots of interesting info in here about the office market. A lot of action is taking place behind the scenes. The Market East project is supposed to start next month. We shall see.

http://sshrealestate.com/files/2014MidYearReport.pdf

There is one huge take away from this:

• There are currently tenants looking for over 600,000 sq ft of office space in the city

[1487]

Originally Posted by summersm343

There is one huge take away from this:

• There are currently tenants looking for over 600,000 sq ft of office space in the city

i didnt realize cigna was looking to leave liberty place. I wonder why considering its a great location and prestigious building. There arent many places that can accommodate the space they are seeking.

[ILovePhilly]

Both the Hallmark and the Laila Rowe on the 1700 block of Chestnut Street are closing. I wonder if the stores will just be replaced or if either is ripe for a redevelopment into something much taller. The Hallmark in particular I think has a big enough footprint to do something at least moderately tall.

Anybody know anything more?

[tsarstruck]

Originally Posted by 1487

Lots of interesting info in here about the office market. A lot of action is taking place behind the scenes. The Market East project is supposed to start next month. We shall see.

http://sshrealestate.com/files/2014MidYearReport.pdf

Also of note that the retail domination of Walnut Street continues with the bottom floor (or floors?) of 1529 Walnut being converted from office into retail space.

And a curiosity: "The Philadelphia 76ers expanded their presence at Three Crescent by taking an additional 13,000 square feet of the Tasty Baking Company sublease." Is this just a temporary move until they take their NJ dole or are they planning to be on both sides of the river?

[PhillySteaks]

Originally Posted by Dean4983

This same thing has baffled me as well. I am always suprised when I see a new bank pop up. Obviously there is some economic reason I just don't get but it really seems bizarre to me.

A long number of years ago I worked at a retail bank branch part time. In addition to plenty of people wanting face to face service there are people with no bank accounts who cash checks drawn off the bank; this is cheaper then a check casher. Also there are a number of businesses which deal in volumes of large checks which need to be deposited (ex.realty escrow)....and even more so a number of retail businesses in the area empty their safes at the end of the day to tellers. Plenty of people still use cash ....places like gap, fro yo, mcdonalds, or whatever all bag, tag, and deposit their cash at the end of the day. You need to think about who uses a bank, it's not just you and your friends. Brick and mortar banks will be around as long as paper money and coin is around. Plain and simple. Also business lending and financial advising plays a huge role in retail locations. These banks invest money in the area and want to be a part of growth. We should all take it as a very good sign that they are all bidding very highly for these locations. Banks are by nature conservative, and if they see safe steady growth with good returns on their lending in an area that is very exciting. Especially if they are fighting to be a part of it. Yes they may look ugly aesthetically but they play a larger role then one may think.

[Baconboy007]

Originally Posted by PhillySteaks

A long number of years ago I worked at a retail bank branch part time. In addition to plenty of people wanting face to face service there are people with no bank accounts who cash checks drawn off the bank; this is cheaper then a check casher. Also there are a number of businesses which deal in volumes of large checks which need to be deposited (ex.realty escrow)....and even more so a number of retail businesses in the area empty their safes at the end of the day to tellers. Plenty of people still use cash ....places like gap, fro yo, mcdonalds, or whatever all bag, tag, and deposit their cash at the end of the day. You need to think about who uses a bank, it's not just you and your friends. Brick and mortar banks will be around as long as paper money and coin is around. Plain and simple. Also business lending and financial advising plays a huge role in retail locations. These banks invest money in the area and want to be a part of growth. We should all take it as a very good sign that they are all bidding very highly for these locations. Banks are by nature conservative, and if they see safe steady growth with good returns on their lending in an area that is very exciting. Especially if they are fighting to be a part of it. Yes they may look ugly aesthetically but they play a larger role then one may think.

I don't disagree with you but if people use them out of necessity why do they need prime real estate?

[Jayfar]

Originally Posted by Baconboy007

I don't disagree with you but if people use them out of necessity why do they need prime real estate?

Probably because business owners would prefer not to walk down a dark alley to make their deposits.

[PhillySteaks]

Originally Posted by Jayfar

Probably because business owners would prefer not to walk down a dark alley to make their deposits.

They want the accounts. Branches in a high commercial area are visible. It's marketing and visibility. Branches in a wealthy area bring in potentially wealthy customers. They want people to know they're the bank to use in an area where everyone wants to be. As far as one block being more strategically then the next I'm sure they look for areas of high visibility and foot traffic close to businesses that are showing increased growth in revenues.

[crackpinky]

Originally Posted by 1487

i didnt realize cigna was looking to leave liberty place. I wonder why considering its a great location and prestigious building. There arent many places that can accommodate the space they are seeking.

I work for Cigna (used to work in Two Liberty but now work from home), and I remember seeing not to long ago an email about potentially looking for other locations when their lease is up in 2016. Seems to me the reasons are to save money, and the fact that Cigna has always had co-headquarters in Philly and Connecticut, but is now looking to establish Connecticut as their primary headquarters. They have been lowering their presence in Philly gradually over the years, but hopefully a move out of TLP won't mean any job losses for our area.

[Flyers2001]

Originally Posted by Cro Burnham

I agree. I have rarely stepped into a bank over the last 5-10 years. I avoid them like ebola; I can't stand going into a bank to make a simple deposit only to be descended upon by voracious sales reps who are not really qualified to do so attempting to cross-sell overpriced low quality products - all of which have been designed to make money for the bank and not me - that I never asked for and don't need. Online banking is just better. You don't have to deal with any of that —, essentially sleazy and underqualified sales reps and brokers, and lower deposit interest. And don't get me started on the perpetual, randomly modulating cycles of ridiculous nickle-and-diming account fees.

As older people die off, brick and mortar banks will too, I suspect. It'll probably just take another 15 - 25 years. It's hard to imagine younger generations really being attached to physical bank branches. They are a waste of both space and money that could be used to increase depositor returns and bank profits

I love this post!!! Its the exact reason I left retail banking as a manager for a certain Yellow and red bank. Its disgusting what they do to their customers and employees.

[Cro Burnham]

Originally Posted by Flyers2001

I love this post!!! Its the exact reason I left retail banking as a manager for a certain Yellow and red bank. Its disgusting what they do to their customers and employees.

You mean the red and yellow bank that used to be a blue and green bank that used to be a green and white bank that used to be a blue and white bank?

I was with that merry go round of names and colors for decades and with each new iteration, they upped the ante with hidden nickle & dime fees, attempts at cross-selling, lower interest rates, and vulture-like antics. Finally I gave up on them and went on line. I'd never go back.

Having said that, the previous posters' point about serving local business customers makes alot of sense. I'm sure we'll have branches, just alot fewer, over the years.

[1487]

I was not aware that this project had grown by 35 apartments in recent months.

http://www.ocfrealty.com/naked-philly/market-east/checking-in-on-the-1100-block-of-chestnut-street

Has anyone seen or heard anything new about Divine Lorraine? Haven't been past there in quite a while. Wondering if actual work is going on.

[McBane]

Love everything about this project except one thing: if the developers were trying to create the illusion of separate/different buildings, they should have mixed up the height rather than having all the buildings be exactly the same. It's still a nice project and infinitely better than what was there previously. This is a real game changer for this block and, together with the activity a block north on Market St, will help finally turn around this forlorn stretch off CC. But again, wish a couple of the buildings were a story or two taller.

[Philly Fan]

Originally Posted by McBane

Love everything about this project except one thing: if the developers were trying to create the illusion of separate/different buildings, they should have mixed up the height rather than having all the buildings be exactly the same. It's still a nice project and infinitely better than what was there previously. This is a real game changer for this block and, together with the activity a block north on Market St, will help finally turn around this forlorn stretch off CC. But again, wish a couple of the buildings were a story or two taller.

The widest, easternmost section will be one story shorter than the other two sections:

Materials and finishes will change as you move down Chestnut Street, and the easternmost building will only rise five stories.

http://www.ocfrealty.com/naked-philly/market-east/checking-in-on-the-1100-block-of-chestnut-street

[Mappy]

Does anybody have a connection to someone at The St. James?

If so we should try to get a wide angle view Web Cam put on top facing west, because that will give us a great view of most of the highrises going up in the next few years.

[Aaamazarite]

Originally Posted by Mappy

Does anybody have a connection to someone at The St. James?

If so we should try to get a wide angle view Web Cam put on top facing west, because that will give us a great view of most of the highrises going up in the next few years.

Mappy- is there any way you can upload those building 3d polygons somewhere so we can get them and see them in our own Google Earth programs?

[Mappy]

Originally Posted by Aaamazarite

Mappy- is there any way you can upload those building 3d polygons somewhere so we can get them and see them in our own Google Earth programs?

I saved a KMZ file here: https://drive.google.com/file/d/0B1M7ORw1X9nMY2dPem9tMVlHUU0/edit?usp=sharing

If you click on it, they will all look like ugly 2D polygons in Google Maps... But if you download the file, and drag it into Google Earth, I think the 3D attributes will come with it.

[Aaamazarite]

Originally Posted by Mappy

I saved a KMZ file here: https://drive.google.com/file/d/0B1M7ORw1X9nMY2dPem9tMVlHUU0/edit?usp=sharing

If you click on it, they will all look like ugly 2D polygons in Google Maps... But if you download the file, and drag it into Google Earth, I think the 3D attributes will come with it.

Excellent! Thanks!

[iheartphilly]

FYI...article on commercial construction. Doesn't appear we made the cut from the article...hopefully this will change with the FMC tower, CITC, and other office, hotel, and apartment highrises in and around CC core and the Cira/Amtrak pad.

http://finance.yahoo.com/news/u-construction-shifts-second-tier-224100205.html