The Market at Comcast Center, the concourse level of shops and eateries underneath Center City’s largest skyscraper, is just shy of being fully leased up a year after opening despite a tough climate for retailers.
The 45,000 square feet are 97 percent occupied and just two spaces at roughly 500 square feet each remain to be filled. John Gattuso, senior vice president at Liberty Property Trust, isn’t worried those two spaces will linger vacant and he wants to make certain the right tenants fill the space.
“I think we set out to do something different,” said Gattuso, whose company developed the 58-story skyscraper for Comcast Corp.’s headquarters that is jointly owned by Liberty and a German bank.
“Instead of finding who would pay the highest rent, we looked at it more as something that would set the tone for the whole development.”
Though the space sits below street level and connects to the commuter rail tunnel, its feel is much more Rockefeller Center than Market East. A newspaper and gum stand didn’t survive even though 25,000 people funnel through the space monthly. However, Di Bruno Brothers, Tokyo Sushi and Catering, Under the C Seafood, LaScala’s, Sook Hee’s Produce and Termini Brothers have so far thrived.
Two new tenants — Omega Optical and Sony Style — recently opened shops and existing tenants are hopeful they will help drive more shoppers to the space. Rents run about $70 to $80 a square foot.
“I think it’s a great location,” said Lily Ferrill, manager of Under the C Seafood, which also sells fresh fish at the Ardmore Farmers Market and Reading Terminal Market. “It’s doing great.”
The space is heavy on eateries with about 80 percent of it filled with food joints compared to 20 percent other retail. Liberty looks at the space as an amenity for its office tenants that reside in the building and as a key component to making the mixed-use development a success. The building also houses Table 31, a white tablecloth restaurant developed by chefs Georges Perrier and Chris Scarduzio.
“In light of the economic environment, we’re very pleased,” Gattuso said.
While the space has successfully leased up, it’s not without its challenges.
“This is a good location for lunch,” said John Kim, who owns Tokyo Sushi and opened his third store in Comcast Center. But for evening and Saturday business, it’s not so good, he said.
“The market tenants are still finding our way to capitalize on this undeniable destination,” said Bill Mignucci, who runs Di Bruno Brothers and opened its fourth location in 2,000 square feet. “I consider the Comcast Center the Rockefeller Center of Philadelphia. From a business point of view, it’s a destination with rail, great public space and you’re in an occupied building in the middle of the Central Business District and two blocks away you have 10,000 residents.”
After nearly a year, however, Di Bruno’s and the other tenants are getting a handle on business volume and demand. For example, Di Bruno incorporated breakfast offerings to capture the commuter business coming off of the rails.
Gattuso acknowledges that after the evening rush and on Saturdays, tenants could use more traffic. Effects are ongoing to draw tourists who visit the lobby as well as Logan Square residents during off peak hours. To that end, a wine and food festival is scheduled for later this month.
“Whether there’s a market for that today is questionable but we’re committed to it,” Gattuso said.
http://philadelphia.bizjournals.com/philadelphia/stories/2009/06/15/story2.html
The 45,000 square feet are 97 percent occupied and just two spaces at roughly 500 square feet each remain to be filled. John Gattuso, senior vice president at Liberty Property Trust, isn’t worried those two spaces will linger vacant and he wants to make certain the right tenants fill the space.
“I think we set out to do something different,” said Gattuso, whose company developed the 58-story skyscraper for Comcast Corp.’s headquarters that is jointly owned by Liberty and a German bank.
“Instead of finding who would pay the highest rent, we looked at it more as something that would set the tone for the whole development.”
Though the space sits below street level and connects to the commuter rail tunnel, its feel is much more Rockefeller Center than Market East. A newspaper and gum stand didn’t survive even though 25,000 people funnel through the space monthly. However, Di Bruno Brothers, Tokyo Sushi and Catering, Under the C Seafood, LaScala’s, Sook Hee’s Produce and Termini Brothers have so far thrived.
Two new tenants — Omega Optical and Sony Style — recently opened shops and existing tenants are hopeful they will help drive more shoppers to the space. Rents run about $70 to $80 a square foot.
“I think it’s a great location,” said Lily Ferrill, manager of Under the C Seafood, which also sells fresh fish at the Ardmore Farmers Market and Reading Terminal Market. “It’s doing great.”
The space is heavy on eateries with about 80 percent of it filled with food joints compared to 20 percent other retail. Liberty looks at the space as an amenity for its office tenants that reside in the building and as a key component to making the mixed-use development a success. The building also houses Table 31, a white tablecloth restaurant developed by chefs Georges Perrier and Chris Scarduzio.
“In light of the economic environment, we’re very pleased,” Gattuso said.
While the space has successfully leased up, it’s not without its challenges.
“This is a good location for lunch,” said John Kim, who owns Tokyo Sushi and opened his third store in Comcast Center. But for evening and Saturday business, it’s not so good, he said.
“The market tenants are still finding our way to capitalize on this undeniable destination,” said Bill Mignucci, who runs Di Bruno Brothers and opened its fourth location in 2,000 square feet. “I consider the Comcast Center the Rockefeller Center of Philadelphia. From a business point of view, it’s a destination with rail, great public space and you’re in an occupied building in the middle of the Central Business District and two blocks away you have 10,000 residents.”
After nearly a year, however, Di Bruno’s and the other tenants are getting a handle on business volume and demand. For example, Di Bruno incorporated breakfast offerings to capture the commuter business coming off of the rails.
Gattuso acknowledges that after the evening rush and on Saturdays, tenants could use more traffic. Effects are ongoing to draw tourists who visit the lobby as well as Logan Square residents during off peak hours. To that end, a wine and food festival is scheduled for later this month.
“Whether there’s a market for that today is questionable but we’re committed to it,” Gattuso said.
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