Suburban Office Is Putting Up A Fight. Here's Why.
The city's hot, but suburban office properties can be just as competitive for tenants, Equus Capital Partners VP George Haines tells us.
Well-located suburban office properties in amenity-rich environments compete favorably with CBD properties in Philly and other major markets, George explains. The suburbs, it turns out, have some competitive edges, such as proximity to a skilled workforce, favorable tax treatment, and—this is the kicker—lower overall occupancy costs. "Those continue to be major factors for companies decision to stay, and grow, in the suburbs.”
Equus Capital Partners recently acquired the 247k SF Bay Colony Executive Park, a four-building office park in Wayne, from Brandywine Realty Trust. The acquisition was made on behalf of BPG Investment Partnership IX, a fund managed by Equus. The property is 88% occupied. After a significant capital investment in building and campus upgrades, George says, the property will be in even greater demand. Also, later this year, Life Time Fitness will break ground on a 100k SF facility diagonally across Swedesford Road from Bay Colony.
