PHILADELPHIA | Highrise Development Thread IX

[kingtut]

A one month snap shot of rental prices really is not giving a direction on prices . A past three month rolling average gives better trend line .
Last week was a very positive in terms of development for Philly ie 3675 Market St. leasing and Penn Med acquisition of Princeton Hospital System one step closer to becoming a closed deal .

[jsbrook]

Originally Posted by summersm343

When you have a dozen buildings all finishing at the same time, it's going to cause a bit of an oversupply for a little. It will all get absorbed and sorted out by next summer. Rents dropped between November and December, because they do every single year in Philadelphia, this is nothing new. Rents are the lowest in Philly between December and February. They go back up again in March. The same thing happens every year.

2116 Chestnut is not struggling with vacancies... as of this past Monday, it's 97% leased. How is that struggling?

I think I had some misinformation on 2116 Chestnut. They are giving some new incentives to get people to rent, not an uncommon practice, but occupancy is high. Personally, though there is a lot of inventory, I don't feel there is a massive glut that will take years to absorb or bottom out prices. Guess we'll see.

[jsbrook]

Originally Posted by Larry King

I don't know if enough apartments are being built here to result in a big decrease in price... Maybe stagnation. Brooklyn lux apartments on the other hand looks like they're gonna get slaughtered. I feel like the for-sale market is stronger here than given credit for, surprised more condo projects aren't launching

We could see some conversion projects of apartments to condos perhaps. It's happened towards the end of other large residential build cycles where the rental market starts to soften but the condo market looks strong. I think the Alison Building on Rittenhouse Square is a good target for that.

[1487]

Perhaps this will be torn down for a new tower

http://www.bizjournals.com/philadelphia/...il-building-across-from-two-liberty.html

[Larry King]

Originally Posted by jsbrook

We could see some conversion projects of apartments to condos perhaps. It's happened towards the end of other large residential build cycles where the rental market starts to soften but the condo market looks strong. I think the Alison Building on Rittenhouse Square is a good target for that.

It would make sense for lux condos though very few units and I don't think Allan is taking on new projects while in city council.

[summersm343]

Originally Posted by jsbrook

I think I had some misinformation on 2116 Chestnut. They are giving some new incentives to get people to rent, not an uncommon practice, but occupancy is high. Personally, though there is a lot of inventory, I don't feel there is a massive glut that will take years to absorb or bottom out prices. Guess we'll see.

Just got updated market survey this morning from 2116 Chestnut and they're 98% leased.

1919 Market is a miraculous 77% leased already.

There are really only a few buildings struggling right now, but I think it's mainly their locations.

All in all, yes there is a lot of inventory available right now, but that's because so much has finished construction and come available at once. I think by the end of next summer, most of these new units will be absorbed, and the next round of apartment buildings will probably start in the spring/summer.

[1487]

Originally Posted by summersm343

Just got updated market survey this morning from 2116 Chestnut and they're 98% leased.

1919 Market is a miraculous 77% leased already.

There are really only a few buildings struggling right now, but I think it's mainly their locations.

All in all, yes there is a lot of inventory available right now, but that's because so much has finished construction and come available at once. I think by the end of next summer, most of these new units will be absorbed, and the next round of apartment buildings will probably start in the spring/summer.

people say the amount of new construction apts here is modest relative to the size of the city and region, it's just more than we're used to. I also think that occupancy rates are so high in this area that people start to act like anything lower is reflective of a struggling market. I don't know what optimal vacancy is supposed to be, but I'm pretty sure you can be higher than we are and still be relatively healthy.

[Larry King]

Originally Posted by 1487

people say the amount of new construction apts here is modest relative to the size of the city and region, it's just more than we're used to. I also think that occupancy rates are so high in this area that people start to act like anything lower is reflective of a struggling market. I don't know what optimal vacancy is supposed to be, but I'm pretty sure you can be higher than we are and still be relatively healthy.

5-8% vacancy is healthy imo

[SJPhillyBoy]

Office tower planned at long-empty lot near Philadelphia City Hall

http://www.philly.com/philly/business/Of...pty-lot-near-Philadelphia-City-Hall.html

West Conshohocken-based developer Oliver Tyrone Pulver Corp. is under contract to acquire the long-vacant lot at 13th and Market Streets near City Hall, with plans for a 38-story office tower at the site, the company said in a release Monday.

The 840,000-square-foot 1301 Market Street Building, to be designed by architecture firm Skidmore, Owings & Merrill, should be ready for occupancy in early 2020, the developer said. The glass-sheathed office building also will include retail space, two landscaped outdoor roof terraces, and other amenities, it said.

38 stories is short for that location and that part of Center City.

[summersm343]

Originally Posted by SJPhillyBoy

Office tower planned at long-empty lot near Philadelphia City Hall

http://www.philly.com/philly/business/Of...pty-lot-near-Philadelphia-City-Hall.html



38 stories is short for that location and that part of Center City.

38 floors of office space will be nearly 500 ft tall. I'll take it!!

[El Duderino]

Originally Posted by 1487

Perhaps this will be torn down for a new tower

http://www.bizjournals.com/philadelphia/...il-building-across-from-two-liberty.html

MM Partners, who bought the building, have said on their Instagram account that this will remain retail (they'll be working with MSC Retail on finding retailers). No mention of any plans for the building itself though, but they do some pretty cool work (the Pyramid Electric Building they're working on up in Brewerytown is going to be pretty awesome).

[3rd&Brown]

Originally Posted by SJPhillyBoy

Office tower planned at long-empty lot near Philadelphia City Hall

http://www.philly.com/philly/business/Of...pty-lot-near-Philadelphia-City-Hall.html



38 stories is short for that location and that part of Center City.

38 stories is tall for a spec commercial office building in a city with no history of building spec commercial buildings. It is also tall for a lot that has been empty for how many decades?

But of course, the Negadelphians have a way of rearing their head. Everywhere.

Of course, it might be taller than we are expecting, as increasingly, the trend is to create higher and higher floor to floor heights to allow light into the center of the building. Both Comcast Buildings have very few floors relative to their heights (40ish)?

So remains to be seen.

Excited to see renderings. This is a huge vote of confidence in the city.

[reparcsyks]

Originally Posted by summersm343

38 floors of office space will be nearly 500 ft tall. I'll take it!!

Same here! I care more about a strong street wall than height. Market Street should have a height minimum of 10 floors, so anything above that makes me happy.

[PhilliesPhan]

Originally Posted by SJPhillyBoy

Office tower planned at long-empty lot near Philadelphia City Hall

http://www.philly.com/philly/business/Of...pty-lot-near-Philadelphia-City-Hall.html



38 stories is short for that location and that part of Center City.

One of the worst surface parking lots in the city is about to bite the dust! What an excellent use for that site. 13th and Market is a major transit node, with connections to the MFL, BSL, trolley and bus routes, Regional Rail, and PATCO via the Center City Concourse. There is really no reason why this site should not have a tower given its strong connection to the entire Philadelphia region.

By the way, wouldn't 38 stories and 840,000 square feet give us something close to or exceeding 550 ft? That would possibly give us our first tower east of Broad to be taller than City Hall, which could be the starting point for much more height in that area following this tower's completion!

[El Duderino]

Originally Posted by SJPhillyBoy

Office tower planned at long-empty lot near Philadelphia City Hall

That is a beautiful thing to read.

[skyscraper]

Originally Posted by 3rd&Brown

38 stories is tall for a spec commercial office building in a city with no history of building spec commercial buildings. It is also tall for a lot that has been empty for how many decades?

But of course, the Negadelphians have a way of rearing their head. Everywhere.

Of course, it might be taller than we are expecting, as increasingly, the trend is to create higher and higher floor to floor heights to allow light into the center of the building. Both Comcast Buildings have very few floors relative to their heights (40ish)?

So remains to be seen.

Excited to see renderings. This is a huge vote of confidence in the city.

I started a thread for this proposal.
Reading the article, it doesn't specifically say that it is a spec building. They didn't say anything about a definite tenant either, but that doesn't mean they don't have one or plan to try to get one.

[skyscraper]

One thing I love about this proposal is the fact that SOM is designing it. They have almost no buildings in Philly. The only other one I can think of that they designed was the old Spectrum.
They are also master planning the 30th street station district.

[PhilliesPhan]

Originally Posted by 1487

Perhaps this will be torn down for a new tower

http://www.bizjournals.com/philadelphia/...il-building-across-from-two-liberty.html

This is also great news! That portion of Chestnut can sustain some serious height given its proximity to the towers along Market. Hopefully, this property, the Boyd lot, and this one-story structure at 17th and Chestnut can also be redeveloped:

https://www.google.com/maps/@39.9515089,...2j5VMmFbu74oQ!2e0!7i13312!8i6656!6m1!1e1

[Knight Hospitaller]

Originally Posted by summersm343

38 floors of office space will be nearly 500 ft tall. I'll take it!!

Merry Christmas to us! If they're smart, they'll build in the retail square footage that Bloomingdales is looking for.

[summersm343]

Link to the new thread for 1301 Market created by skyscraper:

http://forum.skyscraperpage.com/showthread.php?p=7655757#post7655757