Brandywine Realty Trust has "monopolized" the Center City office market, with "similar dynamics" in Radnor, Philadelphia Business Journal's Natalie Kostelni reports in this story today. I posted a similar story here in January.
"78% of the available space in the city's trophy buildings is currently under Brandywine's control," according to the Savills Studley Report (corrected) on the local office market for year-end 2013 here.
Does this mean Brandywine, which has been selling properties outside Philadelphia while consolidating its hold on Center City, University City and the Main Line's high-rent district, can force higher rents on Philly-area employers?
Well, the same Savills Studley brokerage report also noted that office vacancies across the area were up, and office rents were down. Center City office rents, in the $20s-low $30s range, are still in the range they've been stuck for 20+ years, and a lot lower than in New York, Boston or Washington.
And with Brandywine's FMC Tower and Liberty Property Trust's Comcast tower 2 going up, which will remove those two companies from of hundreds of thousands of sq. ft. of Center City office space,"the question on everbody's mind is whether there will be demand to fill" existing properties, Savills Studley noted last quarter...One landlord 'monopolized' Philly's best markets. That a problem?
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