PHILADELPHIA | Highrise Development Thread IX

[relnahe]

Originally Posted by Insoluble

26 million per year for 400 jobs?!?! That works out to $65,000 per job annually. That's crazy. I know Camden needs jobs, but there has got to be a better way.

What a joke! It cost taxpayers in America 100 BILLION dollars a year for these corporate "subsidies". It would be more cost productive to just eliminate all business taxes in this country than it would to continue this.

[PhiLaw]

Originally Posted by relnahe

What a joke! It cost taxpayers in America 100 BILLION dollars a year for these corporate "subsidies". It would be more cost productive to just eliminate all business taxes in this country than it would to continue this.

It's not a joke at all. This is 26 million per year in tax subsidies/tax breaks, meaning the company will realize a tax exemption of up to $26 million per year. The state is not losing any money from this deal over a 35-year period (required by law) - it is simply telling Holtec that NJ will not gain any money from the deal. In fact, NJ will make money in the form of wage tax, consumption tax and other ancillary taxes from the employees working in Camden - not to mention the lunch and other amenities that will realize new business from this site.

We do not have a homogenous tax structure in the 50 states. Business will go to the path of least resistance (lower taxes), just like you will buy the cheaper loaf of bread at the market if both choices are of same quality. No difference. If state tax regimes were cartelized, that would be a different story. NJ is simply trying to compete with the likes of the South, who almost took Holtec from the Northeast.

It is, however, unfortunate that NJ and PA have to pick and choose who gets tax breaks. Why should one large company with ties to government (cronyism) be afforded these tax breaks, while other smaller companies must pay the high-tax rates that forced the State to doll out these breaks in the first place? Why not just lower taxes across the board? Why not take the aggregate amount of tax breaks Harrisburg cherry-picks every year, and use that number to spread it out across the state, lowering taxes for everyone?

[Londonee]

Originally Posted by josef

This is different from being a slumlord how?

It's a good point. They've been squatting on this thing for years.

I think the only hope being. that perhaps Brandywine is seriously considering a much grander concept here--otherwise, their initial proposal was so tame and easily built given market conditions, that i have no idea what their holdup could be.

[Salonica city]

When for a visit earlier today at the Evo to look at potential commercial space . Wow they did it right. And also walked by FMC location and talked with a turner guy and he said that there won't be much digging for the foundation and that they are starting to put cranes together all they have to dig for is to put colums in to the bedrock and then build on that. Fascinating !!!

[tsarstruck]

The Class A apartment market saw its vacancy rate increase in the suburbs, Center City and South Jersey from mid-year 2013 to now, according to Delta Associates, a research firm that tracks the multifamily sector. Vacancy in Philadelphia went up to 5 percent while the suburbs it rose to 4.5 percent and South Jersey to 5.7 percent.

Rents also didn’t fair well. In the closely watched Center City market, where developers have dozens of projects underway and in the pipeline, average monthly rents took a dip, falling by 1.6 percent to $2,141, or $2.24 a square foot.

I'm a little suspicious of what this means, especially focusing on Class A, which is the only thing that's getting built. Could this increase in vacancy be the result of the many new developments on the market and the inevitable lag as they come on market? Of course, the falling rents cuts that argument...

http://www.bizjournals.com/philadelphia/...-of-cooling-in-the-apartment-market.html

[summersm343]

Originally Posted by tsarstruck

I'm a little suspicious of what this means, especially focusing on Class A, which is the only thing that's getting built. Could this increase in vacancy be the result of the many new developments on the market and the inevitable lag as they come on market? Of course, the falling rents cuts that argument...

http://www.bizjournals.com/philadelphia/...-of-cooling-in-the-apartment-market.html

Occupancy rates always drop in the summer in Philly. It's just the time of year with a lot of turn over. Come winter occupancy will be back up.

This is just a lull in activity. I see no long term slowing down in the rental market in Philly.

[summersm343]

Hay Group moves to new headquarters

Hay Group is moving from the Wanamaker Building (is this for the Macy's expansion maybe?) to 1650 Arch. They will add 65 new employees over the next few years.

http://www.bizjournals.com/philadelphia/.../07/hay-group-picks-new-center-city.html

Hotlec International moving to Camden
It's official. Holtec is moving 395 jobs to Camden. However, only 235 will be new to the state of NJ. The other 160 will be moving from Evesham to Camden.

http://www.bizjournals.com/philadelphia/...any-gets-260m-in-tax-credit-to-move.html

[Baconboy007]

Will they be building a new facility in Camden or taking over existing buildings?

[PhiLaw]

Originally Posted by Baconboy007

Will they be building a new facility in Camden or taking over existing buildings?

From what I gather they are building a new facility. The Economic Development laws in NJ are such that a certain investment threshold has to be met to meet the tax subsidies requirements. In Camden, it's 100% of investment spread over 35 years, so their investment is probably around $260 million - most likely for a new facility.

[1487]

Another 2 floors in Centre Square were just leased according to the PBJ. The article says building is 20% vacant, which is a high figure. Guess they never recovered fully from comcast vacating.

[summersm343]

Originally Posted by 1487

Another 2 floors in Centre Square were just leased according to the PBJ. The article says building is 20% vacant, which is a high figure. Guess they never recovered fully from comcast vacating.

It says the Complex remains vacant. The Center Square complex is two towers. So figure about 10% vacant in each tower, each tower is 90% leased. That's not bad at all. The problem is the small space that is available. It's difficult to get firms to fill small space in office towers because the rent is high. Firms that fill small space would rather relocate to small office space like those in Old City.

[summersm343]

University of Pennsylvania Health Systems expands in Center Square

They have added 56,000 sq feet or two floors.

http://www.bizjournals.com/philadelphia/...h-takes-more-space-at-centre-square.html


Think Brownstone, a Conshohocken based Tech company opens Center City office space

They have opened an office in the Packard Grande Building at 15th and Sansom. Only 15 employees will work in the space and they will grow up to 22. However, this is just another fast growing tech company to open office space in Center City, which is great news. One of their clients is Comcast, so it looks like the whole Comcast drawing tech companies to Center City thing has definitely started.
http://www.bizjournals.com/philadelphia/...en-tech-company-opens-new-office-in.html

[Philly Fan]

Originally Posted by summersm343

It says the Complex remains vacant. The Center Square complex is two towers. So figure about 10% vacant in each tower, each tower is 90% leased. That's not bad at all.

Uhhhhh, you need a refresher course in percentages.

If 10% of each of the towers that comprise the complex were vacant, then the whole complex would be 10% vacant. If the whole complex is 20% vacant, then each of the two towers that comprise it is, on average, 20% vacant.

[summersm343]

Originally Posted by Philly Fan

Uhhhhh, you need a refresher course in percentages.

If 10% of each of the towers that comprise the complex were vacant, then the whole complex would be 10% vacant. If the whole complex is 20% vacant, then each of the two towers that comprise it is, on average, 20% vacant.

Haha whoops. You're right. No idea where my head is today. Crazy day

[josef]

Originally Posted by summersm343

Hotlec International moving to Camden
It's official. Holtec is moving 395 jobs to Camden. However, only 235 will be new to the state of NJ. The other 160 will be moving from Evesham to Camden.

http://www.bizjournals.com/philadelphia/...any-gets-260m-in-tax-credit-to-move.html

Just a small tweak here; the tax credits have been approved by the state Economic Development Authority, but Holtec has yet to commit. They're deciding between Camden and Charlestown, SC.

That said, they're holding a conference on Monday in Camden to announce their decision. And Norcross is on their board. So unless they're extreme dirtbags who're going to announce that they're leaving the state from the place that wanted them, I assume it's as good as done. But, we'll see on Monday.

From http://www.njtvonline.org/news/video/eda...es-for-energy-company-to-come-to-camden/

Holtec says it is gratified by the decision and is reviewing the grant. A formal announcement is expected to be made in Camden on Monday.

[GarCastle]

Originally Posted by summersm343

University of Pennsylvania Health Systems expands in Center Square
They have added 56,000 sq feet or two floors.

http://www.bizjournals.com/philadelphia/...h-takes-more-space-at-centre-square.html

Yeap, the floors are being outfitted with a move-in date in December or so. This will be more of a shuffle than an expansion though our department alone tends to grow about 25 people per year (~5%).

More importantly, I heard twice this week, that the Centre Square floors are just temporary until the non-clinical building is built for Penn Medicine. That is the building that I posted a few months back where the garage will be built first and then the unknown number of floors blue glass building will be built on the street side of the garage in the same lot. (far side of the Colket(?) CHOP research building). I heard the future, possibly 2017'ish, building mentioned twice this week so I'm starting to almost believe I'll eventually get out of the crappy Drexel roach-filled building I'm in now. I would lose all the lunch choices I have now of being next to 30th Street Station.

Also heard that 3737 Market will now be potentially ALL Penn. I think originally it was 6 floors? Then the Penn lease expanded to 8 floors? Apparently the idea is to shift people from Penn Tower so they can actually have a chance of emptying Penn Tower in order to tear it down (which is a pre-cursor to much bigger and better things).

Cheers,
G.

[summersm343]

Aerials of Philly from Spring 2014







http://www.phillybyair.com/

[bucks native]

[Jelly Roll]

Originally Posted by Baconboy007

Will they be building a new facility in Camden or taking over existing buildings?

New building is what I heard...

[domodeez]

Not exactly development, but certainly has development implications.. You likely remember the #SEPTA247 campaign to bring round-the-clock service to SEPTA subways. There's been some coverage of a similar campaign to double SEPTA regional rail frequencies between Philly & Wilmington.

http://planphilly.com/articles/2014/07/1...uld-we-boost-septa-service-to-wilmington

http://philly.curbed.com/archives/2014/0...ervice-to-wilmington.php#reader_comments

This would certainly help spur some transit-oriented development to replace the surface parking lots around Wilmington Station. What do you think?