SSH Real Estate

Health Partners Plan


​Service Provided

Tenant Representation

Location

901 Market Street, Philadelphia, PA

Size

Multiple

Overview:

Health Partners Plans (HPP) is a nonprofit health insurance organization that currently serves more than 175,000 members in Philadelphia and the Delaware Valley. SSH began working with HPP over 25 years ago, when it was a much smaller organization. At this time, HPP had approximately 8,000 square feet. As the organization grew rapidly, its space requirements increased exponentially. After several relocations – all managed by SSH – SSH relocated HPP to 80,000 square feet of space in Center City Philadelphia in 1998. In this particular lease, SSH was able to negotiate a tenant termination option, which would become important due to HPP’s rapid growth. By 2002, it had become apparent that HPP would outgrow its space. Once again, it appointed SSH to assist in its relocation.

EXECUTION:

SSH began the process of evaluating HPP’s alternatives for expansion, which included a comprehensive search of the market to determine viable alternatives and corresponding cost analysis for each alternative. It was determined the firm would need approximately 130,000 RSF. In addition, HPP’s leadership wanted visible signage on a prominent building along Market Street.

After the review of each alternative, HPP decided to exercise its termination option and sign a long-term lease at 901 Market Street, where there would be plenty of space for future expansions. In addition, SSH was able to negotiate for signage rights on the building, as shown in the picture above, as well as on the skyline. In 2013, SSH negotiated for the expansion of HPP’s space requirement from approximately 130,000 to 200,000 SF and extended its lease terms.

Result:

This building met all of HPP’s requirements: large floor plates (which allow for effective space layout), relatively low occupancy costs, and prominent signage. The building has been able to accommodate HPP’s continued growth.

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