Comcast and Liberty Strike Deal for $435M Tower

Ever since, the plan has been mired in controversy, initiated primarily by other Center City office building owners, who coalesced to mount a campaign against its construction. The group objected both to tax breaks for the building and the city's largest national tenant, and to construction of a building that would cause further Downtown office vacancies already hard hit by corporate downsizing.

Comcast's lease at Centre Square at 15th and Market streets is set to expire in 2008. Until today, it was the last remaining large corporate tenant yet to commit to remaining in Center City.

Previously called One Penn Plaza, Liberty's new tower is named Comcast Center. The cable TV giant inked a 15.5-year lease for an initial 534,000 sf on 24 floors, which accounts for approximately 44% of the total rentable space. The rental rate is undisclosed. The state legislature has yet to vote on any potential tax-abatement zoning for the site. Under its agreement with Liberty, Comcast has the ability to request construction of a second, 250,000-sf office building on the site.

Construction cost for the initial tower is $435 million. The lead architect is New York City-based Robert AM Stern, principal of Robert AM Stern Architects. Comcast Center will rise 975 feet, piercing the Center City skyline from a city block that has laid largely vacant for more than 20 years. It will include a half-acre public plaza and a new entrance to Suburban Station and is expected to be ready for occupancy in fall 2007.

In the final quarter of 2004, Gov. Ed Rendell provided $30 million in state aid for the development of infrastructure on the site, and the City Council approved acceptance of the aid less than a month ago. At that time, William Hankowsky, Liberty's CEO, failed to commit to the project, saying the aid "means the project is still alive. It doesn't mean it's going to happen."

At a hastily called press conference on this opening business day of the new year, Hankowsky and Brian L. Roberts, chairman and CEO of Comcast Corp., put concern over the fate of the building and Comcast's continuing Center City tenancy to rest. Hankowsky said, "Comcast Center will be one of the most environmentally advanced office towers in the US, a state-of-the-art commercial office building that takes advantage of existing business infrastructure."