PHILADELPHIA | FMC Tower @ Cira Centre South | 736 FT | 49 FLOORS

[Londonee]

Originally Posted by Pennsgrant

Im not liking how the Brandywine promotional wraps around the fencing show no signs of the 2 towers, just a lame generic Brandywine print. Office vacancy in Center City up to 18%..
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Are you just making these numbers up?

Comparatively speaking, Center City's office market is pretty healthy, this is a report from May of this year--and that's following Q4 of 2008 and Q1 of 2009--two of the worst economic quarters in US history.

The Philadelphia CBD experienced very slight changes in the market since Q4 2008 with rental rates decreasing by a mere $0.05 across all CBD submarkets and classes. Direct vacancy still remains in the single digits at 8.9%, compared to 8.7% in Q4 2008. Even when comparing Q1 2008 to current rates, we have only seen a slight increase from 7.1%. Total vacancy, including sublease space, has remained equally unchanged between quarters at 10.3% for Q1 2009 versus 10.4% for Q4 2008, but has increased more than 2% since this time last year. Class AA space still holds the lowest vacancy rate of 5.7% which has decreased from Q4 2008's vacancy of 6.4%, which is attributed to positive absorption at One Commerce Square, Two Logan Square and the Mellon Bank Center totaling in excess of 90,000 SF. The overall CBD is reporting a positive net absorption of 28,100 SF versus a negative 172,000 SF last quarter, however when compared to Q1 2008's positive net absorption of 471,600 SF there is a significant decrease year-on-year. Market Street West was the most significant contributor to the first quarter net absorption rebound due to Thomson Reuters Scientific occupying a large bock of office space at 1500 Spring Garden Street.
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[cubanChris]

A whisper of Cira South in the news today... its not much & maybe not worth posting, but i couldnt help it.

What will Brandywine buy with its new millions?

...The analysts cite Brandywine's "relative strength" in the "defensive" markets around Philadelphia and Washington, D.C., and "the September 2010 delivery of the 100% leased Post Office and Cira South garage projects" at 30th Street, which will pay "over $25 million of annual Net Operating Income" once the Internal Revenue Service moves there from Northeast Philadelphia.

No word yet on the nearby Cira South project, the city- and state-tax-subsidized tower designed for BlackRock Inc., which hasn't said it actually wants the space. We hear the plan's not dead, just in a state of suspended animation, like most commercial real estate projects, these days....

http://www.philly.com/philly/blogs/inq-p...illions_in_hand_may_do_deals_report.html

[BUILDER5000]

From Chestnut street

[Urban Jungle]

Originally Posted by The Cheat

The parking garage will be built by 2010. The two towers are scheduled to be complete in 2012. With UPenn expanding and the tight office space situation in both UC and CC, I don't see why they wouldn't be trying to build this as fast as possible.

CC office vacancies are up. The market is far from saturated.

[cubanChris]

The only thing about the high vacancy rate is that, from what I understand, not large chunks of contiguous space - which would be one of the big selling points of Cira South.

The issue then becomes finding companies large enough to require 100+sq of contiguous space...

[Urban Jungle]

Sunoco is eliminating office space in the MBC as we speak

[Urban Jungle]

So I am guessing after 2 long months of not a single post or news on the Cira South Building this project can be safely called "dead" or on a permanant hiatus.

[hammersklavier]

Not quite yet. You wouldn't jump to such conclusions with the ACC, would you? There's been no news on that one for more than two months, too.

Brandywine's pulled off a miracle and they're still around. Their plans may be delayed somewhat, but I'm more certain than ever this building will be built--due merely to that.

Remember, large skyscrapers take longer to get from proposal to construction since they have to get so many moving parts lined up. Comcast took nearly a decade to get off the drawing board, after all!

[Pennsgrant]

Between ACC and Cira South imo Cira South has a much better chance at happening due to Brandywine and Penn. They just need one solid anchor tenant, ACC committments will have to be immense which isnt likely anytime soon.

[hammersklavier]

But at the same time, ACC has more glamor than Cira South. That may play a role in holding both projects back--remember, it took most of a decade to build the Comcast Center.

[Urban Jungle]

Unless I am forgetting something I remember reading awhile back that Black Rock may move some operations to the building. Along with the already planted few financial firms in Cira Centre it could make for a possible small philadelphia financial district.

Unfortunately Black Rock Realty and another joint partner recently failed in a venture to purchase Stuyvesant Town and Peter Cooper Village and create luxury living from the middle class rent controlled apartments. They defaulted on a major loan turning the properties over to creditors. It was a 5.4 Billion transaction, one of the largest recorded.

-If Black Rock Inc. wasn't already in the dumps about becoming a tenant Im sure this would help push them away.

[hammersklavier]

This is the Schuylkill River side as of 2-12-2010:

[Plokoon11]

I'm guessing the Circa South is next?

[teeheee]

hammer, what does that banner read?

[hammersklavier]

"A Development of Brandywine Realty Trust...[their web address]...$200 million investment, 6,000 JOBS" and a couple of words in green that just look like their slogan.

[alasi]

According to this weeks PBJ, CHOP is looking for space and Cira S. is listed as a possibility. With the estimated need of at least 400,000 sq. ft, that would be enough to get the party started. Let's get on it, Brandywine.

[Parkway]

Add that to the 100,000 sq feet that UPenn wanted and we are looking at a fully leased building. Maybe Blackrock can consider the Acc if they are still looking at the Philadelphia market.

[pwp]

Originally Posted by Parkway

Add that to the 100,000 sq feet that UPenn wanted and we are looking at a fully leased building. Maybe Blackrock can consider the Acc if they are still looking at the Philadelphia market.

I forgot about UPenn looking for space. How many sq ft would Cira South be again?

[hammersklavier]

IIRC Penn would have 20% (1/5) of the space, so that means that...100k x 5... it should ultimately have 500,000 sq ft of space?

[McBane]

I believe somebody posted an article (from Phila Biz Journal) in the main Philly thread about CHOP seeking space in the neighborhood of 100k s.f. If Penn and CHOP commits to Brandywine, would that be enough to kick off Cira South?