Thursday, February 9, 2017

Vanguard picks historic Center City building for satellite office



Vanguard Group has leased 16,000 square feet at 2300 Chestnut St. for a Center City satellite office that it is calling an “innovation center.”

The mutual fund company, which will maintain its vast headquarters in Malvern, Pennsylvania, will occupy two floors at the building and start out with 20 employees in the space.

Vanguard expects to eventually have 100 people working from 2300 Chestnut and even have “external partners” co-locate in the building with it. It expects to occupy the space during the second quarter.


Known as the Philadelphia Design Building, the 100,000-square-foot historic structure has been marketed by JLL as creative office space. Among its tenants are Saxbys Coffee, which has its headquarters in the building, Lauletta Birnbaum, a New Jersey law firm that has a satellite office, as well as Running Press.

While it is in Center City, 2300 Chestnut’s location is accessible to University City and educational institutions such as Drexel University and the University of Pennsylvania, with which Vanguard plans to work. It is also not far from 30th Street Station, and it keeps with a recent trend of companies taking space in older buildings that have more character rather than locating sleek office towers built in the late 1980s and early 1990s.

Vanguard indicated last November that it intended to open a Center City outpost, a first for the company. It selected the building because it had the "right combination of location, style of space and open floor plan and floor-to-ceiling windows," said Arianna Sherlock, a Vanguard spokeswoman. "It will be different for us."

The company wanted to find something different from its Malvern space and that was one of the drivers in looking downtown, Sherlock said. It also wanted to secure an office that was dedicated to the innovation team so that it could think and work and still be within proximity to the company's home base but not involved with the every day routine of it.

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