FORT WASHINGTON, PA—Trying to capitalize on a current boom in demand for upgraded space in the western and northwestern Philadelphia suburban market, Kairos Real Estate Partners is renovating its latest acquisition, the Fort Washington Executive Center.
The Center is the home of anchor tenants NutriSystem, AstraZenaca Pharmaceuticals, McNeil and AmeriHealth Administrators. Kairos and Artemis Real Estate Partners acquired the property from CW Capital Asset Management late last year. Terms of the deal were not disclosed.
“There has been a flight to quality that tenants are taking advantage of lower rents to move to better buildings than they historically would have,” Stephen J. Gleason, Kairos Real Estate Partners president, tells GlobeSt.com exclusively. “Tenants are trading up from B-minus properties to A-minus properties. There is a lot of demand, especially for large blocks of space. In the markets where we operate, from Fort Washington to King of Prussia, there is a dearth of 30,000-foot blocks of space and above. We're starting to see demand coming in from other submarkets and we're finally seeing tenants fighting over the few blocks of space that are remaining.”
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