FS Investments scoured the Northeast region for its next office headquarters, but ultimately decided there was no place like its Philadelphia home.
The asset management firm signed a lease for 117,000 square feet at 3025 JFK Boulevard in the city’s Schuylkill Yards neighborhood, property owner Brandywine Realty Trust announced on Monday. The lease is for 16 years, while the asking rent was not disclosed.
FS Investments, which has more than $83 billion in assets under management, looked at offices in Connecticut and New York, in addition to its native Philadelphia, before settling on Schuylkill Yards. (The company does have smaller offices in both Connecticut and New York.)
The company has occupied 80,000 square feet at the Navy Yard for a decade and is increasing its foothold by 46 percent with its deal, looking to have enough space for 600 employees. Schuylkill Yards is also closely located to Philadelphia’s Amtrak train station.
Tactix Real Estate Advisors represented the tenant in the lease. A representative for Brandywine did not immediately respond to a request for comment from The Real Deal.
Brandywine broke ground on the master-planned Schuylkill Yards back in 2016, delivering the first piece of the neighborhood months before the pandemic. The $3.5 billion project will include 6 million square feet of property when fully delivered, which is expected by the end of the decade.
There are more than 65 tenants at Schuylkill Yards across property types, including life science and retail occupants. Roughly 33,000 square feet of retail space is expected to come online this year, on top of 70,000 square feet already open in the sector.
Philadelphia’s office market appeared to level out during the fourth quarter, according to a report from Colliers. The vacancy rate barely inched higher year-over-year, though the forecast in the report stated that a “meaningful recovery for the office market remains unlikely in the near term.”
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