National Trends in Investment and Transit

National Trends In Investment + Transit

King of Prussia: The Real Estate Imperative For Rail

National Trends: Transit-Served Submarkets Transit-Accessible Submarkets

Average Rents In Transit-Accessible Submarkets

Transit accessible submarkets are some of the strongest performers nationally, achieving vacancy, rent and development levels and volumes in excess of the broader office market at the national, market and submarket levels.

This space, which is only slightly more than one-third of national inventory, is poised for sustained capital appreciation and strong tenant demand over the long-term, making it one of the strongest niche asset classes.

Rents are 49.3 percent higher in transit-served submarkets compared to non transit-served submarkets.

37.3% of office space in the United States is transit-accessible.

Average Asking Rent ($ PSF) $51.52

Tra nsit-Se r ve d (Cla ss A)

$45.57

Tra nsit-Se r ve d (Ove ra ll)

$44.43

Wa lka ble

$42.16

Te c h-D r ive n

All Subma r ket s

$32.40

N ot Tra nsit-Se r ve$25.39 d

Non Transit-Accessible

Transit-Accessible

Source: JLL Research

Page 2

National Trends: Vacancy + New Construction Transit-Accessible Submarkets Significantly Outperform Vacancy

New Construction

Transit-accessible submarkets are 370 basis points lower than non-accessible ones (12.2 percent, compared to 15.9 percent elsewhere).

Sustained tenant interest in transit-accessible areas is also keeping developers active: 47.9 percent of all new office construction in the United States is found in transit-accessible submarkets.

47.9% Outside Outside of of New New York, York, only only 29.5 29.5 percent percent of of office office space space is is found found in in transit-accessible transit-accessible submarkets. submarkets.

of new construction is taking place in transit-accessible submarkets Non Transit-Accessible

Transit-Accessible

Source: JLL Research

Page 3

The Rail Imperative King of Prussia | Radnor | University City Submarket Comparison Description

Radnor

University City

King of Prussia

Size

3.3M SF

5.8M SF

12.8M SF

Current Vacancy

8.5%

5.2%

14.5%

Historical Vacancy

7.2%

3.6%

15.1%

Class A Vacancy

4.9%

4.6%

14.4%

Current Rents (All)

$33.40

$33.70

$24.37

Current Rents (Trophy + Class A)

$36.70

$38.70

$27.32

2%

1.5%

1%

Historical Rent Growth

National Trends: Major Metro Rail Projects C A

Los Angeles - $61.5B

B

San Francisco – $7.85B

C

Seattle - $50B

D

Denver - $5.3B

E

Miami - $2.5B

F

Atlanta - $3.3B

G

DC Metro - $2.7B

H

New York City - $10B

H B

G

D

A

$143+B In Metro Rail Projects Underway

F

E Source: JLL Research

Page 5

King Of Prussia: Why The Rail Project?

The proposed King of Prussia Rail Project will extend the Norristown High Speed Line to the KOP Mall and Business Park (the largest employment centers).

The KOP Rail Will:  Connect KOP to Center City and University City.  Alleviate congestion.  Attract and connect a broader pool of employees to employers in the area.  Stimulate economic development in KOP. 

510,000 SF Projected Real Estate Development.



Strong ROI: Every $1 invested in public transportation generated @ $4 in economic benefits.

 Grow Jobs. 

5,400 - 6,300 Jobs (Direct + Indirect) During Construction.



1,000 Projected KOP Jobs Created Annually.

 Rail service will increase commercial real estate values leading to local tax revenues.  Increase property values along the line and proposed stations.  Create walkable, mixed-use neighborhoods around the proposed stations.  Reduce up to 18 M of automobile Vehicle Miles Traveled Annually.

Page 6

Thank You!

Page 7