PHILADELPHIA-Among the major Northeast CBD office markets from Boston to Philadelphia, only midtown-Manhattan's vacancy rate--8.6%--starts 2003 lower than Philadelphia's 12.2%, according to Grubb & Ellis data. Asking rental rates in trophy properties here rose last year.

PHILADELPHIA-Ground is broken for a seven-story, 60-unit luxury multifamily rental building along the Schuylkill River bank at 3750 Main St. in the city's Manayunk neighborhood. Tower's owner, Bart Blatstein,

PHILADELPHIA-Burdened by debt, strapped for operating cash and haunted by the ghost of a disappointing Christmas past, the King of Prussia, PA-based toy retailer plans to shutter more than a quarter of its stores. The majority are Zany Brainy locations.

PHILADELPHIA-The $20-million purchase of a 507,000-sf distribution facility in Middletown, PA, takes the West Conshohocken, PA-based REIT's Pennsylvania portfolio close to 7 million sf. The facility outside Harrisburg is fully leased to Sears Logistics Services for four more years.

PHILADELPHIA-The communications giant's Mid-Atlantic directory sales unit signs a long-term lease, valued at $2.2 million, at 225 Wilmington West Chester Pike, one of two buildings totaling 90,527 sf in Gateway Corporate Center. Verizon takes Building 225 to above 80% leased.

PHILADELPHIA-The specialty finance firm leaves One Penn Square West for 15,000 sf at 40 Morris Ave., a 43-year-old building on the Main Line with fireplaces and hand-carved mantles that is undergoing renovation. The lease is valued at

PHILADELPHIA-With the purchase of two class-A office buildings in Blue Bell, PA for $34 million, the Cranford, NJ-based REIT makes good on its promise to increase its presence in the suburban Philadelphia market. This follows a King of Prussia acquisition.

PHILADELPHIA-Locally based Commercial Office Furniture Co. sells the single-story, 31,500-sf combined office, showroom and warehouse facility on North 5th Street for $76.19 per sf. Seaman's Church Institute will relocate there from its offices at 3rd and Arch Street this month.