With Large Chunks of Space Scarce in Philly, Law Firm Relocates

Fox Rothschild L.L.P., a tenant at 2000 Market St. for three decades, has wrapped up its search for a new home, having found just the right space right under its nose. The law firm signed a new lease for nearly 104,500 square feet of premier space on three floors in the 665,600-square-foot building. Located in the Market Street West area of Philadelphia’s Central Business District, 2000 Market St. is a 29-story tower that was developed in 1972. The Class A building consists of 648,800 square feet of office space, 5,900 square feet of ground-level retail and 10,800 square feet of storage accommodations. Under the new 15-year lease, the firm will relocate from the 9th, 10th and 11th floors to newly built-out space on the 19th, 20th and 21st floors, while also maintaining its space on the 12th floor.  Fox surveyed the Philadelphia office scene before deciding to upgrade to new space at its longtime home. “The market is still on the tight side for large blocks of space, and they wanted to stay on Market Street West,” Jim Mullarkey, partner with GVA Smith Mack, told CPN. GVA Smith Mack represented the building owner, RREEF, in the transaction, and Tactix Real Estate Advisors L.L.C. stood in for the tenant. The direct vacancy rate in the Market Street West submarket is 9.2 percent, marking a miniscule decline from last quarter’s 9.3 percent. Comparing the city’s vacancy rate patterns with those of other major metropolitan areas in the country, Mullarkey said “Philadelphia doesn’t rise as high or fall as low.”