Who will fill vacant Glaxo towers?
FMC, Pepper, Beneficial, PHMC, or no one?
Who will fill vacant Glaxo towers?
Joseph N. DiStefano
As my colleague Michael Armstrong writes today, one of Center City's big landlords, Mass.-based CommonWealth Real Estate Investment Trust, which owns Philly's BNY Mellon, PNC, Centre Square (ex-CoreStates and Comcast) and One Franklin Plaza (ex-Glaxo) towers, says it's talking to a potential tenant for a part of the vacant Glaxo complex (the whole place used to cover 800,000 sq ft, including 600,000 sq ft of CommonWealth property).
Read Mike's story, which also focuses on a CommonWealth shareholder revolt,here. Who's hunting for a big chunk of Philly office space these days? As I noted Feb. 4, citing Jeff Seligsohn-Peter Soens' SSH Real Estate's annual report:
- Frugal chemical-maker FMC Corp. is looking for a bloc of around 200,000 sq ft to consolidate its several headquarters and support offices in Center City.
-- Law firm Pepper Hamilton also needs around 200,000.
-- Beneficial Bank wants a new 100,000 sq ft headquarters, though boss Gerry Cuddy gives signs of closing on 1818 Market.
-- The nonprofit Pennsylvania Health Management Corp. is also looking for around 100,000 sq ft.
The City should take advantage of this to lure a NEW company to the building to create new jobs, not transfer of existing jobs. Can the city step up to this kind of leadership. I hear Technology is pretty popular industry these days...— Sports4Life- You're never going to lure a new company here. One who has employees who are already paying the onerous wage tax, or who have satellite offices in the region so commuters can be "on payroll" there and not have to pay the wage tax, maybe.— intelliwoman
- Joe - you or Mike should take a look at the management structure of CWH if you're bored. It's one of the last REITs to use an external management structure and pays its management company (RMR) 1% of gross asset value. Gross asset value is based on purchase price, isn't marked to market, and doesn't depreciate, incentivizing management to overpay for properties with shareholder money and earn higher fees. RMR manages CWH, SIR, GOV, HPT, and SNH in the REIT space. CWH has been the worst managed (headed by the son of the RMR founder), but the others have the same problems. Retail investors love these stocks for their yields, but they're losing out on total returns over multi-year periods.— atd
- comcast— Tyrone Biggums
- Yeah, sane business leaders are just lining up to move to Phila.....right!!!
— cubalaw - Somebody will rent it and pay the landlord with all the money the city will throw at their company to move there while raising our taxes and giving them tax breaks. Michael Nutter is the worst Republican Mayor this city has seen.— jn3
- How about a professional and 21st century Police headquarters. First class city needs first class facilities not a rehabbed 87 year old building in west philly— eastfalls
- Nice place to put a casino in! hotel is adjacent to property too!— surfbear
- You would have to be crazy to rent space in Philadelphia with the corruption and high taxes. Go to Blue Bell or Plymouth Meeting.— Ralph 1
