The turbulent office market presents ‘a blend of danger and opportunity.’ Here’s how Philly’s top commercial landlord is handling it.

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Construction of Schuylkill Yards, expected to take decades, “will drive the growth trajectory of the city for the next generation,” said Brandywine Realty Trust CEO Jerry Sweeney.

Jerry Sweeney, CEO of Brandywine Realty Trust and Drexel University President John Fry sign a large beam that was later placed atop Brandywine's building at 3151 Market St. in the Schuylkill Yards development.

While Philadelphia’s vacancy rate climbed to 19% as of September, according to real estate services company Jones Lang LaSalle, Brandywine’s properties in the city are 95% occupied and 97% leased.Even so, Brandywine, which is a publicly traded real estate investment trust, or REIT, is facing skepticism from investors who have soured on the office market.

Tenants aren’t just seeking the best amenities — they want to make sure their landlords will have the resources to pay for improvements, according to Sweeney and independent analysts. “The aggregation of talent and companies in place — whether it’s University City, or at the Navy Yard, is … a powerful magnet,” Alan Greenberger, vice president for real estate and facilities at Drexel, said during a conference hosted by Saul Ewing last month.

 

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