From the Worldwide Faith News archives www.wfn.org
BOARD OF PENSIONS SIGNS NEW LEASE;
05 May 1996 08:40:06
95285 BOARD OF PENSIONS SIGNS NEW LEASE;
WILL MOVE IN OCTOBER 1996
by Jerry L. Van Marter
PHILADELPHIA--The Presbyterian Church (U.S.A.)'s Board of Pensions has
signed a lease for new space in downtown Philadelphia and will be moving in
October of 1996.
The board's new offices will be at 2000 Market Street in a 25-year-old
building across the street from the Philadelphia Stock Exchange, less than
a mile from its current offices at 1027 Arch Street. The board has been in
the Arch Street building since October of 1988.
The agreement, described by Board of Pensions President John Detterick
as "a phenomenally good deal," is estimated to save the board $3 million in
the next 10 years. It includes no rent for the first two years of the
lease -- the same amount of time remaining on the Arch Street lease.
"Rates [for office space] have been going down ever since we signed
the Arch Street lease in 1988," said Detterick, "and so we began looking
around last year when we could see the end of the Arch Street lease
Senior vice president Frank Maloney said he likes everything about the
new lease. The new lease rate is $13.61 per square foot, compared with
$17.91 on Arch Street. The new space is on three floors, where on Arch
Street the board was spread over seven floors ("with the slowest elevators
in the world," Maloney added). And the lease contains provisions for
"giving back" surplus space as automation of services and computerization
of records reduces the amount of space needed for the board's operations.
Up to 85,000 square feet are available.
Maloney, who negotiated the new lease, said the board looked at
relocating to Louisville. That option was fairly quickly ruled out, added
Detterick, because many key employees of the board would not have moved,
thus hampering a major reorganization the board has embarked upon in the
last two years.
"We couldn't move (to another city) and implement our quality program
both," said Detterick , "so we opted for the quality program."
Once the decision was made to remain in Philadelphia, the board had to
decide where in Philadelphia to relocate -- and made an intentional
commitment to the city center. Detterick cited three factors in that
* lease rates have already begun to rise in suburban areas
* transportation -- "a great majority of our employees use public
transportation to get to work"
* the diversity of the urban work force -- "the church has an
obligation to be where people need jobs."
For more information contact Presbyterian News Service
Presbyterian Church (U.S.A.), Louisville, KY 40202
phone 502-569-5504 fax 502-569-8073
E-mail PCUSA.NEWS@pcusa.org Web page: http://www.pcusa.org
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