Inquirer, DN moving to 8th & Market

Saying it would be part of a renaissance on East Market Street, Philadelphia Media Network Inc. will vacate the iconic 86-year-old home of The Inquirer and Daily News for new space in the renovated former Strawbridge & Clothier store.

Gregory J. Osberg, publisher and CEO, made the announcement Monday afternoon in the Inquirer newsroom and later at a news conference with Mayor Nutter.

The company will lease the third floor of the former flagship store at Eighth and Market Streets, with the move expected to happen by July 1.

The lease is for 12 years and six months.

Relocating the newsrooms and business offices at 400 N. Broad St. is expected to save substantial operating costs for the media company that last year was acquired by new owners in a bankruptcy court auction. Proceeds from the sale of the landmark building with the gold dome - a deal that closed in October - were used to pay down debt, said Michael S. Kuritzkes, the company's general counsel.

Philadelphia Media Network will shrink its newsroom and office space to 125,000 square feet from its current 525,000 square feet at Broad and Callowhill Streets. About 740 employees work at 400 N. Broad; 600 will relocate to the new location. Employees also could relocate to facilities in Montgomery County or South Jersey.

The company said there were ordinances that will allow Times Square-like signage on East Market to boost the visibility of the newspapers and their website, Philly.com, at the new location.

The new offices will be leased from the Pennsylvania Real Estate Investment Trust, a firm whose holdings include the Gallery at Market East, adjacent to the former Strawbridge's store. Ronald Rubin is chief executive officer and chairman and he attended the news conference. Sources close to the deal say state and city economic-development funds are expected to be used to assist the move.

Osberg said the company would merge its newsrooms in the new location but maintain separate identities of the company's brands, which are The Inquirer, Daily News, Philly SportsWeek, and Philly.com.

"This has been our home for more than 80 years, and it will be difficult to leave it all behind," Inquirer editor Stan Wischnowski said. "It was here in this building that countless numbers of reporters, photographers and editors performed with great distinction for many decades at the national and local level.