,  
 

Q3 of 2016 was a strong quarter for those investing in King of Prussia commercial properties. Vacancy rates for Class A commercial office space continued to drop by another half percent from the last quarter to 7.8%, while the average lease rate increased to $28.77 /SF. This drop in the vacancy rate lowers the amount of available space in this class by almost half from the same quarter last year. At this time last year, the rate was 14.2% with lease rates less than $27/SF.
 
Class B office space also experienced renewed interest in the past quarter with a 4% drop in the vacancy rate. The average lease rate climbed a bit over $21/SF. The limited amount of Class C space remained about the same at 15.3% vacant. When all three classifications are combined, the office vacancy rate has reduced from 17% in September 2015 to 13% at the end of September 2016, with the average lease rate rising by the same 4% to $25.33/SF.
 
Industrial/Flex space remains in high demand with vacancy rates continuing to drop and lease rates rising from the same time last year. Vacancy has dropped from 4.8% in Q3 2015 to 3.1% at the end of last month, while the average lease rate rose to $7.45/nnn.
 
We expect this trend in the office market to persist as investors continue purchasing renovated properties in King of Prussia. MIM-Hayden Fund recently sold the fully leased, 4-story office building at 150 S. Warner Road [that it purchased in 2012 for $11M when the property was only 44% occupied]. After making $3.5M in improvements, the property sold for $28M to Spaulding and Slye Investments.
 
Also in the same neighborhood, The Judge Group celebrated the opening of its new headquarters at 151 S. Warner Road, on October 10. This impressive professional services company relocated and expanded their head office, bringing 300 new employees to King of Prussia. (read more on The Judge Group below)
 
Sincerely,

Eric T. Goldstein
Executive Director, King of Prussia District
Dominant KOP Corner Hits Market for $12.2M
Purchased earlier this year for $4.1M by Florida-developer Hector Vinas, the 18,000 SF future Basset Furniture is on the market for $12.2M. Vinas' strategy has been successful in King of Prussia, yielding him high returns on similar projects on DeKalb Pike. Read More from the Philadelphia Business Journal...
New King of Prussia HQ for The Judge Group
Building is "a Tribute to Our Employees", says CEO Marty Judge 
The search was long but convenient location, unmatched area amenities and the perfect building made King of Prussia an easy choice for The Judge Group CEO Marty Judge.

On October 10, 2016, The Judge Group officially opened their new 89,000 SF headquarters. The modern offices feature multiple group conference and think stations for the company's nearly 300 employees. Focused on providing recruitment services for technology and health-related industries, the growing company needed a new location that would be convenient for the majority of its employees and after 46 years, The Judge Group now has its own building.

151 S. Warner Road, Ste 100
610.667.7700 | judge.com

In the News

New URBN wing at King of Prussia Mall featuring all brands and a beer garden.  
4 KOP Companies Make "50 On Fire in Philly" List 
Philadelphia Business Journal  
The newspaper launched a new initiative to identify the fast-growing companies in Greater Philadelphia and Montgomery County is home to nearly half of them!
Read More...

URBN Creates "One-Of-A-Kind" Shopping Experience at King of Prussia Mall
Philadelphia Business Journal 
The re-imagined wing at King of Prussia Mall now houses all Urban Outfitter brands, including a beer garden and Pizzeria Vetri. Read More...

KOP Redevelopment Continues
Philadelphia Business Journal 
Once home to Sears Auto, this section of King of Prussia Mall is being redeveloped into two separate food and beverage concepts. Read More...

Leasing Activity
   
3200 HORIZON DRIVE
RENAISSANCE PARK
39,687 SF

150 S. WARNER ROAD
35,172 SF

2560 RENAISSANCE BOULEVARD
RENAISSANCE PARK
35,000 SF

210 MALL BOULEVARD
GENERALS OFFICE COMPLEX
29,252 SF

610 FREEDOM BUSINESS CENTER DRIVE
21,431 SF

1000 FIRST AVENUE
MASCHELLMAC OFFICE COMPLEX
19,708 SF

2200 RENAISSANCE BOULEVARD
TRIAD BUILDING
RENAISSANCE PARK
10,144 SF

640 FREEDOM DRIVE
8,174 SF

2200 RENAISSANCE BOULEVARD
TRIAD BUILDING
RENAISSANCE PARK

5,359 SF

198 ALLENDALE ROAD
5,000 SF

901 EAST 8TH AVENUE
CEDAR RUN CORPORATE CENTER
4,677 SF

Not a complete listing.
Leases submitted to KOP-BID as of 10.18.16.




King of Prussia District (KOP-BID) is a 501(c)(3) not-for-profit, special 
 services organization. KOP-BID engages public and private partners to 
 collaboratively improve the economic environment in King of Prussia 
 by making it more vibrant, attractive and prosperous.

Learn more at visitKOP.com



DISCLAIMER: All information obtained using CoStar Analytics and field checked for accuracy by KOP-BID. Vacancy rates are calculated using existing, non-owner occupied commercial buildings, over 10,000 SF, Class A, B, and C plus retail, industrial and flex. KOP-BID uses "Direct % Vacant Available" in its vacancy rate reporting.



234 Mall Boulevard, Suite 150, King of Prussia PA 19406 
484.681.9452 | [email protected]
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