Despite the poor economic climate for development, Radnor-based
Brandywine Realty Trust continues to exceed profit forecasts. This has been evidenced through out 2011, and has been true in the Delaware Valley and across the country. In fact, Brandywine has been able to execute almost 2.5 million square feet of leases through June of this year. As a result, "all operating and financial metrics equaled or exceeded our business plan targets," says Gerard Sweeney, President and CEO of Brandywine.
One major reason for Brandywine Realty's success in attaining leases can be found in Center City. This is where the realty titan inked a long-term lease with Janney Montgomery Scott at Three Logan Square, located on the 1700 block of Arch St. Brandywine "executed a 146,321 square foot, 15-year lease with Janney Montgomery Scott LLC at Three Logan Square," says Sweeney.
While Brandywine expanded its leased space in Center City, it also sold unloaded property in South Jersey. "During the second quarter of 2011, we completed the sale of Three Greentree Center, a 13.9-percent occupied 69,300 square foot office building in Marlton, NJ," says the CEO. The company was able to use considerable profits made on this sale to reduce their credit balance.
Brandywine Realty Trust is one of the largest comprehensive real estate companies in the country. It has properties in Pennsylvania, New Jersey, Virginia, Texas, California, and elsewhere. They are well known for sustainable building practices, as many of their buildings nationwide are either LEED or Energy Star certified.
Brandywine's success shows that developers can still meet profit forecasts, even with the present economic uncertainty. Judging from Brandywine, sustainability seems to be one key to succeeding in leased properties. Another key seems to be the ability to know when to sell unprofitable properties.
Source: Gerard Sweeney, Brandywine Realty Trust
Writer: Andy Sharpe