Comcast/NBC merger may mean office growth 

Comcast Corp.’s merger with NBC Universal is expected to have a range of economic effects on Philadelphia with the potential for new jobs, the need for additional office space and even the arrival of businesses desiring to be close to the giant cable and media company. 

With the merger still in need of regulatory approval and not set to be officially completed for another year, how much growth there eventually will be is difficult to predict, but many observers anticipate the region will get a boost. The headquarters for the entire merged entity will be in Philadelphia, though company officials have said there could initially be a small number of local job cuts as part of the merger. 

“This is a wonderful opportunity for Comcast as well as Philadelphia,” said D’Arcy Rudnay, Comcast spokeswoman. “To be the headquarters city for NBC Universal as well as Comcast is terrific in many ways and will most likely create opportunities for the business community.” 

It’s too early to tell what those opportunities might be, she added. Still, the accepted perception is the merger will have positive ramifications. 

“What it does for the rest of the market is tremendous,” said John Binswanger of commercial real estate broker Binswanger. I can’t imagine that there won’t be growth. It opens a whole unique position for Philadelphia and the region being the headquarters of one of the largest communications companies in the world.” 

Comcast will likely need additional employees to help shepherd the merging of the two companies and to provide headquarters-based support for the needs of both Comcast and NBC, Binswanger said. “Support for the consolidation gives us a tremendous opportunity for growth but how much at this point is too difficult to predict,” he said. 

Binswanger’s firm represents Comcast in its real estate needs but isn’t able to identify what the company may eventually need or disclose if it’s in the market seeking space. Comcast is looking for some additional office space in Center City and the western suburbs to accommodate some short-term needs, according to other real estate sources. 

The merger has renewed speculation whether Comcast would construct a companion tower to its 1.2-million-square-foot headquarters. Comcast occupies about 90 percent of the building. Earlier this year, Liberty Property Trust sold an undeveloped parcel on the Comcast site at 17th Street and John F. Kennedy Boulevardto the cable giant for $11 million. The deal kept Liberty as the developer if Comcast ever decided to build anew. A building on that land could run between 300,000 square feet to 600,000 square feet. 

If growth is in the future here and Comcast doesn’t build, which might be too costly at current construction costs, the company has limited choices in Center City where it could occupy large blocks space. 

While the growth isn’t imminent, it is anticipated. 

“This could have a huge economic impact on Philadelphia,” said Les J. Cranmer, senior managing director at Studley Inc., who advises corporations on their real estate needs. “If you just look at headquarters and mergers as they come and go, wherever you end up with seat of power, good things happen.” 

There’s what Cranmer called the “affinity play,” a dynamic that occurs when people and businesses want to be close to Comcast and decision makers at the company. Back-office jobs and a roll-up of management may also translate into additional jobs and a need for more space. 

Tom Morr, president and CEO at Select Greater Philadelphia, sees the merger as valuable promotion for the region. Select, an arm of the Greater Philadelphia Chamber of Commerce, markets the region to attract new businesses to it. The deal could help help Select in attracting new businesses to the region.