CoStar Market Insights: Philadelphia Office Fundamentals Are Benefiting As Growing Coworking Operators Move Into This Market for the First Time
This week, San Diego-based flexible workspace provider CommonGrounds announced its 62,461-square-foot lease at Shorenstein’s 1700 Market, with the new location scheduled to open by the first quarter of 2020.
When CommonGrounds opens the facility, it will be Center City Philadelphia’s largest coworking space, surpassing MakeOffices’ 57,000-square-foot space less than a block away, at 1635 Market. CommonGrounds’ announcement was also the third in a chain of large leases signed by coworking operators in Center City during 2019 including WeWork’s 50,000-square-foot lease at 1100 Ludlow and Industrious’ 55,000-square-foot lease at Two Liberty Place.
All told, these three deals have pushed Center City’s coworking leasing to over 160,000 square feet seven months into 2019, already surpassing any full year on record.
Many of Center City’s largest leases by more-traditional government, financial and legal tenants have involved companies switching Center City addresses, but downsizing their overall amount of office square footage. This was the case with the EPA’s recent announcement that it would shed more than 125,000 square feet when it moves to Four Penn Center.
Meanwhile, coworking companies are some of the few new tenants increasing the number of locations they operate in Center City, or in the case of CommonGrounds moving into Philadelphia for the first time.
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*Article is courtesy of CoStar News, Adrian Ponsen, July 24, 2019