Wednesday, April 13, 2016

Law firms in merger talks take up lots of Center City office space



Reed Smith and Pepper Hamilton, two law firms that are in merger discussions, are among Philadelphia’s leading users of office space.

Combined they occupy nearly 400,000 square feet, are two big tenants of Brandywine Realty Trust (NYSE: BDN) and among the anchors in two of the landlord's buildings.


In mid-2013, Pepper Hamilton renewed its lease at Two Logan Square. The 268,000-square-foot deal kept Pepper Hamilton as one of the leading tenants in the Center City building. The firm had been a longstanding tenant in the complex at 100 N. 18th St.

In December 2011, Reed Smith decided to relocate its Center City offices to Three Logan Square after spending more than 20 years at One Liberty Place. The law firm signed a long-term lease on 115,000 square feet on floors 28 through 33 at the signature office building at 1717 Arch St. It moved in early 2014.

It’s too soon to tell what impact a potential merger between the two firms might have on the office market though it’s likely that, if a deal is consummated, the combined firms won’t need both office spaces. Depending on the timing, the addition of more than 100,000 square feet of available trophy space would ease some of the tightness that high-end segment of the market is experiencing in Philadelphia.

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