Five Reasons to Believe in Philadelphia

Five Reasons to Believe in Philadelphia savills "Change" is Part of "Challenge" Studley #1 Philadelphia's CBD Viewed As an Asset Companies Who Relocated/ Opened Offices in Philadelphia HILL Hill International EISNERAMPER Independence AMERICAN BIBLE SOCIETY ACCOUNTANTS & ADVISORS AXALTA 100,000 SF 42,000 SF 60,000 SF 38,000 SF 112,000 SF 200 Jobs 130 Jobs 290 Jobs 100 Jobs TBD Source: Savills Studley Philadelphia credits up to $25,000/job created or 2% of the annual wages paid for firms that can create at least 25 new full-time jobs or increase their full-time Philadelphia workforce by 20% within a five-year period. Source: http://www.phila.gov/commerce/Documents/JCTC.pdf #2 Professional / Business Services Segment Is Growing Philadelphia Establishment and Employment Growth By NAICS Sector $871 Ш Accounting and Advertising and PR Management of Companies and Enterprises Architectural Computer Systems Design Management and Technical million and Bookkeeping Engineering Consulting 15% - 13.0% in 10% - 7.5% 6.9% NIH 5.2% 5.2% 3.8% 4.9% 4.7% 5% - 4.0% 3.9% 1.5% 0.8% grants 0% Establishment Growth, % Change Q3 2013 – Q3 2014 Employment Growth, % Change Q3 2013 – Q3 2014 Includes all NIH grants awarded in Philadelphia in FY 2014. Source: Bureau of Labor Statistics. #3 Young Workers Are Changing Philadelphia's Demographic Composition Change in Fraction of the Resident Population Aged 20-34 2007 and 2013, in Percentage Points New Privately-Owned Residential Building Permits Philadelphia 4,500 $900 Philadelphia | R County, PA 5.9% # Units 4,000 $800 Construction Cost (Millions) New York 5.1% 3,500 $700 County, NY 3,000 $600 District of 4.3% Columbia 2,500 $500 Fulton 2,000 $400 County, GA (Atlanta) 2.9% 1,500 $300 Baltimore 1.5% County, MD 1,000 $200 Essex 500 $100 County, MA (Boston) 1.0% $0 2007 2008 2009 2010 2011 2012 2013 2014 0% 1% 2% 3% 4% 5% 6% Source: American Community Survey, 1-Year Estimates, 2007 and 2013. Source: Census Bureau. #4 Rising Office Rents Trophy Space is at a Premium 18% Arrival of Comcast Center $36 11 "Trophy" Properties 16% Cira Center $34 1. 1650 Market St. -– One Liberty Place 14% $32 2. 50 S 16th St. – Two Liberty Place 12% $30 3. 130 N 18th St. – One Logan Square 4. 100 N 18th St. – Two Logan Square 10% $28 5. 1717 Arch St. – Three Logan Square 8% $26 6. 2929 Arch St. – Cira Centre North 7. 1701 JFK Blvd. – Comcast Center 6% $24 8. 1735 Market St. – BNY Mellon Center 4% $22 9. 1901 Market St. – Independence Blue Cross Total Vacancy Rate - Total Avg. Asking Rent 2% $20 10. 2005 Market St. – One Commerce Square 은 유 8 11. 2001 Market St. – Two Commerce Square Source: CoStar and Savills Studley. #5 The University Impact and the Comcast Effect University Impact: Comcast Effect: Penn Comcast. UNIVERSITY of PENNSYLVANIA The company is taking 1.28 msf of office space in the newly-constructed Innovation and Technology Center (which, at a cost of $1.2 billion, will mark the tallest building in the United States outside of New York and Chicago). A new $1.5 billion patient pavilion is underway, with 700-beds (and 50 operating rooms) planned. CH The Children's Hospital of Philadelphia® Preparations for a 563,000 sf development along the Schuylkill River have started. The company has announced the formation of a new enterprise led by its CFO that will focus on investments in global growth businesses, with $4 billion in investment capital coming from Comcast directly. E Drexel UNIVERSITY A preliminary strategy is developing for 10 sites and 6.4 msf from 30th to 32nd Streets and Market Street to JFK Boulevard Heidi Learner Greg Soffian Philadelphia Co-Branch Manager [email protected] Hether Smith Philadelphia Co-Branch Manager [email protected] Chief Economist [email protected] 212.326.8648 215.563.4000 215.563.4000 Savills Studley is the leading commercial real estate services firm specializing in tenant representation. Founded in 1954, the firm pioneered the conflict-free business model of representing only tenants in their commercial real estate transactions. Today, supported by high quality market research and in-depth analysis, Savills Studley provides strategic real estate solutions to organizations across all industries. The firm's comprehensive commercial real estate platform includes brokerage, project management, capital markets, consulting and corporate services. With 26 offices in the U.S. and a heritage of innovation, Savills Studley is well known for tenacious client advocacy and exceptional service. The firm is part of London-headquartered Savills plc, the premier global real estate service provider with over 27,000 professionals and over 600 locations around the world. Savills plc is listed on the London Stock Exchange (SVS.L). For more information, please visit www.savills-studley.com and follow us on Twitter @SavillsStudley and LinkedIn. 1997 3Q 1998 2Q 1999 1Q 1999 4Q 2000 3Q 2001 2Q 2002 1Q 2002 4Q 2003 3Q 2004 2Q 2005 1Q 2005 4Q 2006 3Q 2007 2Q 2008 1Q 2008 4Q 2009 3Q 2010 2Q :..: ...': .. · 2011 1Q 2011 4Q 2012 3Q 2013 2Q 2014 1Q 2014 4Q