When Radian Group Inc. decided to relocate its headquarters to the suburbs from Center City and shrink the space it will occupy by more than two thirds, the company became an early outlier.
While a few firms such as Dropbox, Facebook and Ford Motor Co. have decided to forgo working in an office and go fully remote post pandemic, most businesses are hesitant to make major changes or commitments at this point. Most are waiting to see how hybrid arrangements and the coronavirus play out this fall and even into early next year before making any significant changes to their space needs.
“Radian is a bit of a unicorn,” said Scott Miller, a broker with CBRE Inc. who represents tenants in leasing decisions. “We have not seen urban tenants want to exit the city in a meaningful way. What Radian did is really unique. They rolled the dice on millions of dollars of lease obligation.”
That was part of the calculation. The mortgage insurance company still has more than six years remaining on its lease on 173,400 square feet at 1500 Market St. in Center City and wants to find a tenant to backfill it. In its move to the suburbs, Radian subleased 54,000 square feet of furnished space at CrossPoint off Swedesford Road in Wayne.
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‘Relatively complex calculation’: Radian an outlier moving to suburbs, significantly reducing office space