KING OF PRUSSIA DISTRICT
ANNUAL REPORT TO THE COMMUNITY LUNCHEON March 23, 2017
SHERATON VALLEY FORGE
#OurEdge2017
ERIC GOLDSTEIN Execu've Director
King of Prussia:
Success Built on Strategic Partnerships
“… how far we’ve come
considering that just 7 years ago, UMT had serious financial & legal problems & our commercial real estate market was struggling. ” - UMT Supervisor Greg Waks
In 2010…
Commercial Office Vacancy Rates were High
Q4 2016
Class A Commercial OďŹ&#x192;ce Vacancy Rates <8%
CSL BEHRING
DRUGDEV
150 S. WARNER
In 2010â&#x20AC;¦
No New Housing Units were Under Construction
as of Q4 2016â&#x20AC;Ś
2,500+ New Multi-Family
Units Recently Completed or Under Construction!
INDIGO 301
HANOVER
CANVAS
THE BROWNSTONES
PARK SQUARE
In 2010…
KOP’s Profile was Not Top of Mind
In 2016â&#x20AC;Ś
3 Companies Established
Corporate Headquarters in King of Prussia
THE JUDGE GROUP 90,000 SF 250 Employees
HTH WORLDWIDE 110,000 SF 250 Employees
VERTEX, INC. 168,000 SF Nearly 800 new jobs
Jobs ounces 225 New n n A lf o W r o n ns in Gover f Vertex Locatio o n o ti a d li so n o with C unty Montgomery Co October 28, 2016
porate tax solutions t Vertex, Inc., a cor yn area into one central ounced today tha rw ann Be lf the Wo in m ngs To Governor new national separate buildi Harrisburg, PA – aying jobs at the ions from seven ate 225 new, high-p solidate its operat cre con l and wil y, er, unt vid Co pro omery of Prussia, Montg location in King n. rations in headquarters locatio headquarters ope m 560 to more sen to maintain its headcount here fro that Vertex has cho yee ce plo oun em ann its to g re ing, and growin pay ue ll tin we , con ble to “It’s a great pleasu s sta end are I unty and that it int s company offers nia’s middle class. Montgomery Co positions that thi sustain Pennsylva vernor Wolf. “The help rebuild and monwealth.” can com t than 785,” said Go the tha of ent g ym ein nomic well-b type of emplo exemplary of the tributions to the eco its significant con for its new applaud Vertex for e an 11-year lease ject, Vertex will execut ,498,500 in the pro $23 e future growth, dat est mo inv to om ns acc e pany pla ions and niture, and fixtur ulevard. The com fur To facilitate operat Bo , ent nce ssa ipm nai equ Re IT at 2301 and new e years, and to headquarters site re improvements; s over the next fiv new, full-time job sehold; infrastructu 225 of n atio cre including the lea to the x has committed purchases. Verte s. existing employee earch, employee the retention of 560 s that included res multi-year proces said Lainie Sitko, gh ,” rou ion tho vis a ic of ult strateg move was the res gressive culture and we continue as pro lve our of evo “The decision to n tio and w r us to gro careful considera ortunity to partne move will enable opp s his thi “T focus groups, and y. for teg ul tef stra are gra workplace its economy.” ing client base. We and a Vertex director of and are exp the our of n to tio revitaliza ional value contribute to the providing except ’s Action Team and opment that with the Governor Economic Devel be of Community and n Tax Credits to atio m the Department Cre fro al Job in pos 00 pro g fundin and $450,0 Vertex received a st Program grant Fir nia lva nsy 00 Pen includes a $750,0 jobs. creation of the new nomic distributed upon enced group of eco are n Team, an experi h businesses that Governor’s Actio wit the rk by wo ed and nat or rdi coo govern The project was ort directly to the fessionals who rep lvania. development pro anding in Pennsy exp or g e atin loc Inc. for innovativ considering relied on Vertex, vices, and an companies have ser 000 ed 10, nag n ma tha y, re log s. Vertex ished in 1978, mo es advanced techno to business succes Since it was establ company combin tegic contributors utions. Today, the clients’ to be stra its corporate tax sol p hel to s ert of tax exp experienced team s worldwide. n 850 professional employs more tha
Thousands of New Jobs Coming to K OP as 3 Companies M ove Headquarters to Montgomery Cou nty The new energy and momentum in King of Prussia continues headquarters in 201 to attra 6. Within the last six • • •
months, three significa
nt leases were announ
The Judge Group (151 South Warner Roa d) HTH Worldwide (955 First Avenue) Vertex, Inc. (2301 Renaissance Bouleva rd)
Combined, these com
ct the interest of corp
ced in KOP includin
orate
g:
panies will bring mor e than 1,000 new, high -paying jobs to KO P. “King of Prussia is experiencing a surg e in Class A office Prussia District Exe leasing activity,” said cutive Director. “Co Eric Goldstein, Kin rporations seems to taxes, great schools, g of be attracted to the exc and business-friend iting amenities, low ly township.” Vertex, a corporate tax solutions provider currently headquarte County, will consoli red in neighboring date its operations Berwyn in Chester in multiple location new 180,000-squares to one central loca foot national headqu tion in KOP. The com arters will bring 225 five years. That is in pany’s new, high-paying jobs addition to the 560 existing employees to KOP over the nex who will now be loca t ted in KOP. “The decision to mov e was the result of a thorough, multi-y focus groups, and care ear process that incl ful consideration of uded research, emp our progressive cult Vertex Director of loyee Workplace Strategy ure and strategic visi . “This move will ena on,” said Lainie Sitk providing exceptiona o, ble us to grow and l value to our expand evolve as we continu ing client base.” e In October 2016, The Judge Group – a lead ing global provider technology, talent, and learning solution of professional serv ices specializing in s – opened its 90,0 Warner Road. The 00-square-foot corp new location allows orate headquarters for future growth and bett employees. on South er access to amenitie s for its 235 Brandywine Realty Trust is currently con structing a build-to HTH Worldwide, in -suite, 110,00-squarethe newly rezoned foot office building King of Prussia bus for iness park.
King of Prussia Mall has Always Been Synonymous with Retail but nowâ&#x20AC;Ś
King of Prussia is Attracting the Best Retail & Dining Throughout
KING OF PRUSSIA MALL 155,000 SF Expansion
KOP Town Center 260,000 SF
VALLEY FORGE SHOPPING CENTER
King of Prussia Shopping Center
since 2010â&#x20AC;Ś
137+ New Retail & Dining Locations Have Opened in KOP
In 2010â&#x20AC;¦
Hotel Occupancy was at 55.1%*
*Tourism Economics
In 2016â&#x20AC;¦
Avg. Weekday, 64.6% Avg. Weekend, 72.9%
*Valley Forge Tourism & Conven'on Board.
*
*
In 2010â&#x20AC;¦
Employment Population was 55,697
Q4 2016
60,000+ Employees in KOP
In 2010â&#x20AC;Ś
KOP Commercial Property Values were Stagnant
Q4 2016…
Commercial Office Real Estate Transactions Point to Growing Value
• • • • • • • •
1170-1190 DEVON PARK DR. | Sold for $63.5M, $254/SF 1000 CONTINENTAL DR. | Sold for $63M, $307/SF 455 S. GULPH RD. | Sold for $37.7M, $285/SF 2200 RENAISSANCE BLVD. | Sold for $30.2M, $229/SF 150 S. WARNER RD. | Sold for $28M, $187/SF 151 S. WARNER RD. | Sold for $26.8M, $300/SF 935 FIRST AVE. | Sold for $25.5M, $245/SF 2701 RENAISSANCE BLVD. | Sold for $24M, $194/SF
What has all of this done for Upper Merion Township Revenues?
In 2010â&#x20AC;¦
UMT Revenues were $26M
For Adopted 2017 Budget...
UMT Revenues are Projected to be $36M 38.3% Increase
Raising KOPâ&#x20AC;&#x2122;s Profile Throughout the Region
THE TAKEAWAYS… • Unique & Successful Partnership. Working to create a cohesive vision • Potential is Limitless. Significant projects needed to remain competitive • Raising the Profile is Job 1. BIDs often serve as the marketing department for government
Our Edge. Your
#OurEdge2017