Brandywine Realty Secures Major Lease in Philadelphia

FS Investments and Brandywine Realty Trust have entered a 16-year lease agreement for 117,000 square feet at 3025 JFK Blvd., a mixed-use tower within Philadelphia’s $3.5 billion Schuylkill Yards master-planned development.

The alternative asset manager is planning to relocate its global headquarters to the new space in early 2026. The company’s move from its current headquarters at Navy Yards will grow its footprint by 46 percent at 3025 JFK Blvd., where it has taken up four floors.

FS Investments has been in Philadelphia since its inception in 2007 and at Navy Yards since 2015. The company will bring its 300 local employees close to key transit connections at 30th Street Station, which is undergoing a large-scale restoration and renovation.

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The 28-story mixed-use building at 3025 JFK Blvd. features 200,000 square feet of office space, a 29,000-square-foot indoor-outdoor amenity floor, 9,000 square feet of ground-floor retail and 18 floors of luxury residential. It also provides tenants and residents direct access to the newly expanded High Line Park.

Tactix Real Estate Advisors represented FS Investments in the transaction, according to The Real Deal. Last year, Goodwin Procter also signed a lease at the building, which is now 80 percent leased.

Schuylkill Yards’ progress

Last year, Brandywine Realty Trust and Drexel University topped out 3151 Market, a 435,000-square-foot 14-story life science building at Schuylkill Yards.

The tower at 3151 Market St. spans 14 acres in Philadelphia’s University City district. Offering 417,000 square feet of best-in-market lab and office space, 18,000 square feet of retail and amenity space, and 6,000 square feet of terrace space, it opened in 2024.

There are currently 65 office, life science and retail tenants at Schuylkill Yards. Upon completion at the end of the decade, the master-planned development is expected to total 6 million square feet of space across various property types.

Philadelphia’s office market performance

The prices for office space in Philadelphia decreased for the second half of 2024, according to CommercialEdge. Fundamentals did not improve over that time, with vacancy increasing by 510 basis points over the past 12-month period ending in October.

The muted supply pipeline had just 1.9 million square feet under construction. Four out of the five projects underway in October were life science assets, reinforcing the market’s emergence as a growing hub for the sector.