Since 2010, Listed Funds and REITs have disposed of five times more office in Suburban Philadelphia than they’ve acquired
Since 2010, Listed Funds and REITs have decreased their investment in existing office properties by 13.3 million square feet.
November 20, 2019
- Since 2010, Listed Funds and REITs have decreased their investment in existing office properties by 13.3 million square feet across Bucks, Chester, Delaware, and Montgomery Counties (inclusive of JV’s). REITs such as Mack Cali, Liberty Property Trust, Corporate Offices Property Trust, and Grammercy Property Trust have contributed to over $1.9 Billion in dispositions across this geography the past ten years, with only $400 Million in acquisitions happening during the same time frame. Notable REIT dispositions include Mack Cali’s 2013 1.7 million s.f. portfolio sale to local private investor Keystone Property Group for $233 million and Liberty Property Trust’s 31 office, 1.9 million square foot Horsham portfolio sale to a joint-venture of Workspace Property Trust, Forum Partners, and Safanad for $190 Million in 2015. In addition to this sale, Liberty Property Trust disposed of $818 Million in other office investments, which was the result of a strategic shift to focus solely on investments in industrial properties prior to their acquisition by Prologis.
- With REIT’s being less active on the buyer side of office investments in this region, both institutional and private investors have stepped in to assume a greater presence, often engaging in large capital investments to redevelop aging properties. Active buyers not already mentioned include Equus Capital Partners, Rubenstein Partners, and Spear Street Capital and private investors Maguire Hayden RE Investments, Chambers Street Properties, Arden Group and M&H Properties. In total, including properties that traded more than once, over 52 million square feet of office sales have occurred in this region since 2010.
Source: JLL Research, Real Capital Analytics