Out with the old and in with the new: The positive impact of Philadelphia’s new Comcast building
May 1, 2014
Philadelphia’s skyline is getting a facelift. Just six years after the construction of the Comcast Center — Philadelphia’s tallest skyscraper — Comcast is upping the ante again. The company recently gained approvals to build the new Comcast Innovation and Technology Center. The center will be the eighth tallest building in the U.S. at 1,121 feet, edging out its predecessor by one floor.
The building marks significant growth for the perpetually overlooked city, one often overshadowed by New York’s financial power and D.C.’s political heft, but gaining new recognition in recent years. This new construction answers the cry for more office space in downtown Philadelphia, and stands to improve the economy as a whole. While not slated for completion until 2017, the Comcast Innovation and Technology Center is expected to increase jobs, spur new construction, improve rental rates, and enhance tourism. Here’s how.
Increase jobs
The new construction adds much needed office space to downtown Philadelphia. Comcast will retain ownership of 75% of the building upon completion, leaving 25% of the center open to other office tenants. Comcast currently plans to fill the offices with approximately 1,500 new hires as well as existing software developers, engineers, and other technical professionals from Comcast offices around the Philadelphia region and the world. Currently, the development is slated to create some 2,800 new permanent jobs in the city, while its construction is predicted to generate around 20,000 direct and indirect jobs.
Spur new construction
The building will also encourage supporting projects throughout the city. With the increase in downtown jobs, more housing for these new employees will be needed. This will spur further construction of apartments and single-family homes within the city and throughout the suburbs. The increase in people living and working in the city will also boost the development of downtown retail centers and parking garages. From a developer’s perspective, it’s a great time to begin construction in the city of Philadelphia.
Improve rental rates
The Comcast Innovation and Technology Center is also expected to improve rental rates throughout the city. Since Comcast plans to take over the majority of the building, the new structure won’t add a surplus of offices to the Philadelphia market or drive down office prices. Demand for office space has been on the rise in Philadelphia with vacancies falling and rental rates rising. And the new Comcast building could push rents even higher. While the average price for commercial space in the city was $28.12 per square foot in 2012, Liberty Property Trust, the developer behind the new construction, plans to debut the space in the upper $30s per square foot, even “kissing $40.”
Enhance tourism
The most unexpected outcome of the construction of the new Comcast center is its boost to the city’s tourism sector. While the building alone isn’t enough to draw in crowds, it’s expected to have tourist appeal similar to the Comcast Center (known for its Christmas-themed multimedia projection shows). In addition, the new building will house a 220-room Four Seasons Hotel and a restaurant in its upper stories. The top-tier accommodations paired with the spectacular view will certainly keep visitors happy and booking return visits.
The Comcast Innovation and Technology Center marks a new age for Philadelphia. The building finally positions Philly as the world-class city it’s always been, and highlights the growth destined to come in the near future. Philadelphia is a city of history, passion, and now, a real estate hotbed.
Posted by: Michael Silverman
