10-27-17

12B — October 27 - November 9, 2017 — Ask The Experts— Owners, Developers & Managers — M id A tlantic

Real Estate Journal

www.marejournal.com

A sk T he E xperts

he office market con- tinues to flourish in the Philadelphia suburbs, Company space strategies focus on location, cost and replicating urban amenities Office Development in the Suburbs: What Concerns Tenants Most? T on zoning overlays to allow mixed-use development in districts previously zoned for office.

and education for their chil- dren. Other younger workers are choosing to live downtown while reverse-commuting to work in the suburbs. For ex- ample, trainloads of millennials can be found each day arriving at Paoli Train Station prepar- ing to spend the day in the suburbs. Forward-thinking companies are reacting to this increased market desire for an urban lifestyle regardless of the zip code. Office tenants are seek- ing the best suburban locations and premiere properties with amenities that compete with downtown environments. In

turn, developers are convert- ing tired suburban office parks into vibrant “live, work, play” centers designed to attract companies that employ this talented and educated genera- tion of workers. King of Prussia has been getting the bulk of the recent attention with high-profile proj- ects like The King of Prussia Town Center. But we’re seeing plenty of activity in submarkets like Fort Washington, Bala Cynwyd and Horsham Town- ship, where municipalities are investing in infrastructure improvements and working hand-in-hand with developers

When it comes to meeting ten- ant demands, each company’s re- quirements are unique but many face similar challenges. While companies want the right space to retain current employees and attract top talent, they have much to consider. A few key ten- ant concerns include whether or not their competitors are looking at the same buildings; who the landlord is and their long-term strategy for the property; and the best time to negotiate for space. It is true developers need tenants most at the start of a project, and a well-informed tenant within a submarket is the one least likely to pay a premium. The future of office and high- finish flex development in the Philadelphia suburbs presents continued opportunities and challenges for investors and occupiers. As businesses of all shapes and sizes closely examine their options, it’s our job to have forefront knowledge and provide real estate solutions that meet each business’ unique needs. Michael J. Sweeney is a di- rector of brokerage services at Cushman & Wakefield. n running for 35 years, is depen- dent on quality, reliability and longevity. If the CHP equipment selected will be the primary pow- er source, it must have a proven track record of meeting these performance standards - as well as ease of maintenance. In addi- tion, the length of the combined warranty / maintenance contract is also an essential factor with regard to the financial underpin- ning of any CHP installation. With the first five years of sav- ings from operations earmarked for project payback, a minimum of an additional five or even ten years is required for the invest- ment return. Harvard’s 35 years of successful CHP operations sets the gold standard in this regard. In terms of putting an actual face on one or two of the hundreds of successful CHP stories in the Metro Area, think of Interfaith Hospital operating for many years independent of the grid or the Brevoort Coop in Greenwich Village which successfully weath- ered SuperstormSandy with their lights on. In subsequent CHP articles, we will focus on case studies such as these as well as more specifics of CHP installa- tions and how they can work for your facility. George Crawford is princi- pal of Green Partners LLC. n continued from page 11B By George Crawford

with no short- age of devel- opment and r e d e v e l o p - ment across the regi on. Suburban de- velopers are taking note of evolving

In Upper Dublin Township, firms such as Kairos Real Es- tate Partners, Somerset Prop- erties, and Avir Realty Group aligned their Fort Washington Office Park projects with the substantial upgrades to the surrounding infrastructure. Office tenants can enjoy re- gional rail and many highway upgrades which easily connect them to a pool of workers from Center City to the outer edges of the Greater Philadelphia region.

Michael Sweeney

trends like the growing per- centage of millennials who are reaching an age where they are starting families and look- ing outside of the city for jobs as well as affordable housing

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