Thursday, November 20, 2014

Shire's relocation could mean big changes to Chesterbrook office market



Shire's decision to relocate its headquarters from Chesterbrook Corporate Center in Wayne, Pa., to Lexington, Mass., means eventually more than 400,000 square feet of office space could come on the market.


It will not be vacated all at once, which will soften the blow somewhat.

Shire has different lease expirations on the buildings it now occupies and the company said it intends to retain a small office presence in Chesterbook, where about 250 to 300 company employees will continue to work.

Shire (NASDAQ: SHPG) currently has 978 employees in Chesterbrook and plans to relocate 500 jobs to Lexington in several phases beginning in the first quarter of 2015.

The company occupies four buildings in the business park. They are: 725-735 Chesterbrook Blvd., a two-building complex that totals 235,000 square feet; 1400 Liberty Ridge, which is about 100,000 square feet; and 1200 Morris Drive, a 105,000-square-foot building.

It's speculated that the first property Shire will likely move out of is 725-735 Chesterbrook Blvd., which is owned by Pitcairn Properties. CBRE Inc. handles leasing at the property.

"They are beautiful buildings and we are confident they will lease right up," said Dan Dagit, an office broker with CBRE who oversees leasing the property.

Tenant activity is brisk and being driven by M&A activity, relocations and growth, Dagit said.

The other two buildings' leases reportedly expire in 2017 and it's uncertain how much of that space Shire will continue to occupy.

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