King of Prussia District Annual Report Findings Illustrate KOP’s Strong Performance in 2022 & Point to a Bright Future
King of Prussia, PA (April 3, 2023) –On March 30, King of Prussia District unveiled findings from its 2023 Report to the Community that illustrate the community’s strong post-pandemic recovery and bright future, despite the news about SEPTA’s King of Prussia Rail project. The District released the report during a presentation to a packed ballroom at the Sheraton Valley Forge during its Annual Report to the Community Lunch.
“While I am disappointed that this is the end for KOP Rail, I do not regret the work that King of Prussia District put into this project,” Eric Goldstein, President & CEO of King of Prussia District, told the crowd. “While King of Prussia Rail would have enhanced our position, it does not define our future. Over $4B worth of economic development in the past 12 years is only the beginning.”
The detailed report points to a strong post-pandemic recovery for King of Prussia, fueled by numerous large-scale development project approvals and constructions starts, and a notable number of CRE transactions and leases confirmed.
Key findings from the 2023 Report to the Community include:
- Employment trips to KOP increased to 67% of pre-pandemic levels, buoyed by an ever-increasing mix of business types that require work-from-work, while total trips (resident/employee/visitor) returned to 90% of pre-pandemic levels.
- Investors and business confidence in KOP remains high, with 6 projects completed in 2022, and 21 in the pipeline.
- King of Prussia’s commercial office market has rebounded strongly, with Class A vacancy below pre-pandemic levels (10.9% in 2023 vs 14.5% in Q1 2020) with Class A average rates higher than pre-pandemic levels ($33.20 price/SF in 2023 vs. $26.13 price/SF in Q1 2020).
- Retail still reigns supreme in KOP, with King of Prussia Mall reaching 92.3% of pre-pandemic trips, and King of Prussia Town Center reaching 90.3%. In 2022, 53 restaurants and retailers opened in KOP, while at least 15 are planned for 2023.
- With the second largest concentration of healthcare and life sciences outside of University City, King of Prussia continues to see growth in these sectors. Numerous prestigious companies in these industries are setting up shop and investing in their futures in KOP.
- King of Prussia continues to build an impressive portfolio of fun, with attractions moving in, like The Friends Experience, Cork & Candles and Thrillz High Flying Adventure Park, and Topgolf opening summer 2023. Valley Forge Casino Resort also had a banner year, ranking #3 in PA revenue, up 27.5% over the past year.
- Upper Merion Area School District opened the doors to a new 300,000 SF, $150M high school in 2022. The state-of-the-art building is one of three new schools opened since 2018.
King of Prussia District also recapped progress across each of its five programs. Highlights include:
- Building on Phase One of the First Avenue Linear Park, which connects 10 properties in Moore Park, the Linear Park continues to progress, with Phase Two nearly complete and Phase Three in design and engineering. The District hosted 10 events and activations along the Linear Park in 2022.
- The District advanced a number of multimodal trail plans and studies that will increase connectivity in KOP, including: the connection of Moore Road with the First Avenue Linear Park the Schuylkill River West Trail; the connection of Valley Forge National Historical Park with The Village of Valley Forge via N. Gulph Road; and connectivity within for Renaissance Park.
- The District’s multimodal work complements recent improvements to other trails by the Township and County including completion of the Chester Valley Trail Extension, Crow Creek Trail and Schuylkill River West Trail.
- King of Prussia District continued to make its mark on Renaissance Park with new gateway signs at the entrances to the business park. In partnership with the Renaissance Park property owners, the District also constructed a new pedestrian walkway that provides better access to SEPTA’s Hughes Park Station.
- The District enhanced the First Avenue Linear Park with a temporary beehive and a permanent outdoor ping-pong table, which were activated with special events in 2022.
Marketing & Communications:
- In early 2022, the District launched a new and improved VisitKOP.com, with new features such as an interactive development map, small business directory and information about KOP’s booming healthcare and life science scene.
- King of Prussia District rolled out HQ KOP in 2022, a multi-channeled marketing campaign targeting C-Suite executives to explore the many reasons why KOP is an ideal location to live and work.
- King of Prussia District’s event roster surpassed pre-pandemic levels and included several new events, including KOP Wellness Week, and Igloo Garden on the Green, a dreamy pop-up dining oasis in KOP Town Center, which raised $15,000 for Upper Merion Area Community Cupboard.
- King of Prussia District’s 2022 Tax Policy Report showed that Upper Merion Township ranked third lowest in terms of total tax burden on business, relative to competitive regional suburban jurisdictions.
Land Use & Zoning:
- King of Prussia District continues to work with Upper Merion Township on land use and zoning policies that support future planned growth of the community such as enhancements to the King of Prussia Mixed-Use District (KPMU).
ABOUT KING OF PRUSSIA DISTRICT
King of Prussia District was founded through an Upper Merion Township Ordinance in 2010 as a not-for-profit, 501(c)3, business improvement district to serve as a catalyst for economic development and job growth. Within its 1,935-acre boundary, King of Prussia District partners with 431 commercial, industrial and multi-family property owners who collectively have over $2.3B in total assessed property value.
King of Prussia District’s mission is to engage public and private partners to collaboratively improve the economic environment in King of Prussia by making it more vibrant, attractive and prosperous. This mission, and our core values – progressive, determined and fun – drive the organization’s work across five programs: Land Use & Zoning; Marketing & Communications; Physical Improvements; Tax Policy; and Transportation.