Philadelphia’s office market rounded out a great year in 2019, with vacancies holding near 20-year lows, and rent growth clocking in at 4%. But beneath the market level statistics, a noticeable divide in performance between Center City and the suburbs exists.
Urban core submarkets, including University City and Market Street West, remain well tied to emerging industries that drive leasing, including life sciences and co-working. At the close of 2019, the percentage of investment-grade office space listed as available for lease in these submarkets reached the lowest levels ever recorded since CoStar began tracking availability listings in 2005.
Trends are noticeably different in the suburbs. The Main Line maintains a drum-tight vacancy rate of 5%. However, at the end of 2019, the gap in availabilities rates between the Market Street West/University City area and Philadelphia’s suburbs was the widest recorded in more than 15 years.
Our latest Philadelphia office market video update dives into these trends in more detail, to help investors understand opportunities and risks emerging in 2020.
*Article courtesy of CoStar, Adrian Ponsen
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