Wednesday, March 6, 2013

Why would anyone build a skyscraper in Philly?

Class A office space in Philadelphia has fluctuated in the 28-35 dollar range (approximate) per square foot for years with trophy space in the upper 40’s. While we have only a few “Trophy” towers in Center City, there is a large supply of beautiful Class A space.    
“Why would a company or landlord spend the estimated $500/sq. ft. (SF) it would cost to build a new high-rise office tower in Philadelphia, when it could buy serviceable Class A buildings for a quarter or a third of that cost, or lease it for maybe 5% as much per year?”  I don’t know why, but some do and the prestige of the space may be the driving force.  Read Mr. DeStefano’s blog on this subject here…

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