Center City Coworking Leasing Hits All-Time High in 2019

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.

For more information about Philadelphia office space for sale or lease in Philadelphia or about any other Philadelphia commercial properties for sale or lease, please contact WCRE at 215-799-6900

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier Philadelphia commercial real estate broker that provides a full range of Philadelphia commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Please visit our websites for a full listing of Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.

*Article is courtesy of CoStar News, Adrian Ponsen, July 24, 2019

Prime Philly Office Space for Lease on Rising Sun Avenue

Wolf Commercial Real Estate, the leading Philadelphia commercial real estate brokerage firm that specializes in Philly commercial real estate listings and services, is offering prime Philadelphia office space for lease at 6712-6714 Rising Sun Avenue Philadelphia PA.

The asking lease price for this office space in Philly is $24.00 sf NNN. This Philadelphia office space for lease is being offered for immediate occupancy through Wolf Commercial Real Estate, a Philly commercial real estate broker with expertise in Philadelphia commercial real estate listings and services.

This Philly office space for lease at 6712-6714 Rising Sun Avenue Philadelphia PA contains a total of +/- 4,600 of divisible Philadelphia office space for lease. Exterior building signage is available at this Philly office space for lease and there is a full fit-out for a legal or medical office at this office space in Philadelphia.

This Philly office space for lease is available for lease through Wolf Commercial Real Estate, a Philadelphia commercial real estate brokerage firm with expertise in Philly commercial real estate listings and services.

More than 39,000 people reside within a one-mile radius of this office space in Philadelphia while the average household income in the same geographic area near this Philly office space for lease is $55,847. More than 15,000 vehicles a day pass this Philadelphia office space for lease.

For more information about this Philly office space for lease at 6712-6714 Rising Sun Avenue Philadelphia PA or about any other Philadelphia commercial properties for sale or lease, please contact Mitch Russell (215-799-6143; mitch.russell@wolfcre.com), Ty Martin (215-799-6144; ty.martin@wolfcre.com) at Wolf Commercial Real Estate, a Philly commercial real estate broker that specializes in Philadelphia commercial real estate listings and services.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier Philly commercial real estate broker that provides a full range of Philadelphia commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philly commercial properties for buyers, tenants, investors and sellers. Please visit our websites for a full listing of Philadelphia commercial properties for sale or lease through our Philly commercial real estate brokerage firm.

Medecision Inks Deal at CrossPoint at Valley Forge

Medical Software Company Signs Sublease in Wayne, Pennsylvania

Medecision, a leader in software solutions for the healthcare industry, subleased 24,726 square feet at Prime US REIT’s Class A office building at CrossPoint at Valley Forge in Wayne, Pennsylvania.

The 272,360-square-foot, four-story building at 550 E. Swedesford Road was built in 1974 and renovated in 2014. The 4-Star property spans 25.3 acres less than four miles from King of Prussia.

For more information about Philadelphia office space for sale or lease in Philadelphia or about any other Philadelphia commercial properties for sale or lease, please contact WCRE at 215-799-6900

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier Philadelphia commercial real estate broker that provides a full range of Philadelphia commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Please visit our websites for a full listing of Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.

*Article courtesy of CoStar News, JULY 12, 2019|ALDEN DYSON

Philadelphia’s Center City Office Rent Growth Outperforms Most East Coast Central Business Districts

Market Stat: Center City Office Rent Growth Outpaces Manhattan, Downtown Boston and the District of Columbia on a Year-Over-Year Basis

The Central Business Districts of global gateway markets such as New York, Washington, D.C., and Boston, have long been perceived as the powerhouses for office rent growth in the Northeastern U.S. But that dynamic appears to be changing.

Since 2016, rents in the CBDs of the most-expensive East Coast markets have been flat-lining. With average office rents now between $55 to $75 per square foot, affordability constraints are coming into play for CBD tenants in New York, Washington, D.C., and Boston. Meanwhile, these three locations have seen a combined 48 million square feet of new office projects either complete, or break ground in the past five years. For owners of existing office properties, this rapid expansion in high-end office inventory means more properties to compete with and less bargaining power during lease negotiations.

The situation is very different in Center City Philadelphia, where the list of technology and finance tenants looking to expand may be limited, but sky-high construction costs are keeping new office development to a minimum. Averaging $33 per square foot, Center City’s rents are vastly more affordable than those in other nearby East Coast CBDs, and rent growth, which made a strong showing from 2013 to 2015, has only accelerated in recent years.

Investors who have piled into Midtown Manhattan and District of Columbia properties at 3% to 4% capitalization rates in recent years may not like it, but this divergence may well continue over the long-term, given the prohibitively high cost of doing business in the Northeast’s global gateway markets.

For more information about Philadelphia office space for sale or lease in Philadelphia or about any other Philadelphia commercial properties for sale or lease, please contact WCRE at 215-799-6900

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier Philadelphia commercial real estate broker that provides a full range of Philadelphia commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Please visit our websites for a full listing of Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.

*Article courtesy of CoStar News, JULY 03, 2019|ADRIAN PONSEN

Philadelphia’s Unemployment Rate Falls to 30-Year Low

CoStar Market Insights: Tight Labor Market Favors Apartment Rent Growth, but Limits Office Tenant Expansions

After another month of job growth, Philadelphia’s economy has reached an important milestone. The metro area’s unemployment rate fell to 3.1% in May, the lowest level of unemployment recorded in Philadelphia since the Bureau of Labor Statistics (BLS) began publishing the figure in 1990.

For local commercial real estate markets, current record-low unemployment represents both a blessing and a potential risk.

On the positive side, it reflects how Philadelphia’s economy is clearly stronger than it was 10, 20, or even 30 years ago. The healthcare sector has powered this transformation, growing its employee count by 25% – or over 100,000 local jobs – since the end of the last recession 10 years ago.

With available workers in short supply, competition for new recruits is forcing companies to raise wages across industries and not just for the highest paid positions.

At least five local health systems have announced plans to raise their minimum wage since late 2018. The BLS also reported that average hourly wages across all sectors grew by 3.6% last year. Pay increases like these have supported rent growth over 3% among Philadelphia’s workforce housing rentals.

But the lower Philadelphia’s unemployment rate goes, the harder it will become for local companies to find the employees they need, making it more difficult for businesses to grow and less likely that they will expand their real estate footprints.

At 1.2% year-over-year, Philadelphia’s pace of job growth has already slowed to about two-thirds of the pace recorded in 2014 to 2015, when available workers were easier for companies to find. In line with that trend, the pace at which local office tenants are expanding their square footage has also slowed in the past three to four years.

Philadelphia’s tight labor market will likely persist into next year. Under this scenario, wage gains should continue to support accelerated rent growth in workforce housing rentals while slowing job gains keep a lid on office tenant expansions.

Office tenants may not be growing aggressively, but they will likely continue to put increased emphasis on leasing high-end space to help recruit and retain employees, as it is becoming increasingly costly to lose them.

For more information about Philadelphia office space for sale or lease in Philadelphia or about any other Philadelphia commercial properties for sale or lease, please contact WCRE at 215-799-6900.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier Philadelphia commercial real estate broker that provides a full range of Philadelphia commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Please visit our websites for a full listing of Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.

*Article Courtesy of CoStar News, Adrian Ponsen

Corporate Downsizings Are Causing Available Office Space to Accumulate in Philly’s Northern Suburbs

CoStar Market Insights: Office Availabilities Reach 10-Year High in Philadelphia’s Horsham/Willow Grove Submarket

The share of Horsham/Willow Grove’s office stock listed as available for lease rose to 15% last quarter, the highest level recorded there since CoStar began tracking the figure in 2005.

Toll Brothers was the largest single contributor to the recent rise in availabilities. In early 2019 the home builder announced it would vacate its 203,000-square-foot headquarters at 250 Gibraltar Road in Horsham by the end of the year and move to a smaller, 167,000-square-foot office at 1100 Virginia Dr., in the nearby Fort Washington/Spring House submarket.

Toll Brothers’ announcement followed 120,000 square feet coming available at 425 Privet Road in Horsham during late 2018. This property long housed a U.S. office of Israel-based Teva Pharmaceuticals, which enacted a major restructuring that included 14,000 layoffs globally last year.

Horsham/Willow Grove has long been the tightest office submarket in the northern suburbs, and it still is. But the accumulation of record space availabilities at a time when Philadelphia’s economy remains healthy and unemployment is at multi-decade lows sends a clear signal that tenant preferences are shifting away from the submarket. Long-term challenges could lie ahead for local landlords as tenants loyal to the northern suburbs gain increased bargaining power in lease negotiations.

For more information about Philadelphia office space for sale or lease in Philadelphia or about any other Philadelphia commercial properties for sale or lease, please contact WCRE at 215-799-6900

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier Philadelphia commercial real estate broker that provides a full range of Philadelphia commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Please visit our websites for a full listing of Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.

*Article courtesy of CoStar News, Adrian Ponsen, July 9, 2019

Shared Office Space Provider Inks Deal in Center City

Shared office space provider WeWork has signed a 50,514-square-foot lease at New York-based JOSS Realty Partners and SSH Real Estate’s Class A office building in Philadelphia.

The eight-story building at 1100 Ludlow St. in Philadelphia’s East Market development totals 227,313 square feet. Built in 1920, the landlords recently tapped Morris Adjmi and BLT Architects to transform and improve the facade of the facility.

The modernized exterior features Adjmi’s signature grid design, and the “post-industrial style” emulated in the facade and interior is helping to create the dynamic urban neighborhood that will connect Midtown Village with the business district along Market Street. 1100 Ludlow is located in the heart of Philadelphia’s City Center with proximity to City Hall, Chinatown and public transportation.

WeWork’s lease includes the entire top two floors of the 4-Star building, which is the company’s fifth location in the city. The coworking company is also located at 1000-1010 N Hancock St., 1430 Walnut St., 1601 Market St. and 1900 Market St.

For more information about Philadelphia office space for sale or lease in Philadelphia or about any other Philadelphia commercial properties for sale or lease, please contact WCRE at 215-799-6900

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier Philadelphia commercial real estate broker that provides a full range of Philadelphia commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Please visit our websites for a full listing of Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.

*Article Courtesy of CoStar News, Samantha Reeves

Environmental Protection Agency Inks Deal at Four Penn Center Office Tower

Government Agency Signs 173,000-SF Lease in Downtown Philadelphia

Environmental Protection Agency leased 172,658 square feet at Treeview Real Estate Advisors’ Four Penn Center office tower in Philadelphia.The 4-Star, 522,050-square-foot building at 1600 John F Kennedy Blvd. spans three quarters of an acre across from Suburban Station. The 20-story structure was built in 1964 and renovated in 2001.

The EPA’s 15-year lease encompasses six full floors at the Class A tower.

For more information about Philadelphia office space for sale or lease in Philadelphia or about any other Philadelphia commercial properties for sale or lease, please contact WCRE at 215-799-6900

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier Philadelphia commercial real estate broker that provides a full range of Philadelphia commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Please visit our websites for a full listing of Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.

*Article Courtesy of CoStar News, Rachelle Pinchiat June 12, 2019

Zarwin Baum Devito Kaplan Schaer Toddy P.C. Inks Deal at One Commerce Square

Law Firm Signs Lease at Downtown Philadelphia Office Tower

Law firm Zarwin Baum Devito Kaplan Schaer Toddy P.C. subleased 29,724 square feet at One Commerce Square in downtown Philadelphia.

The 1.02 million-square-foot tower at 2005 Market St. was built in 1987 and renovated in 2013. The 41-story, 4-Star building spans 1.4 acres one block from the 22nd Street trolley station.

The new tenant plans to occupy the tower in October 2019.

The landlord, Brandywine Realty Trust, originally purchased One Commerce Square in December 2013, CoStar data shows.

For more information about Philadelphia office space for sale or lease in Philadelphia or about any other Philadelphia commercial properties for sale or lease, please contact WCRE at 215-799-6900

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier Philadelphia commercial real estate broker that provides a full range of Philadelphia commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Please visit our websites for a full listing of Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.

Industrious Expands Philadelphia Footprint

Flexible Workspace Provider Signs Office Lease at Two Liberty Place

Flexible workspace provider Industrious signed a 55,000-square-foot lease at the Two Liberty Place office tower in Philadelphia.

Joyce Oh, Mid-Atlantic area manager of Industrious, said in a statement, “Industrious first entered Philadelphia in 2015 and we have continued to witness strong demand for our product. As we were looking to expand across the market, our existing relationship with Coretrust opened the door to one of the city’s top Class A buildings.”

Industrious plans to open at Two Liberty Place in the first quarter of 2020. The company will occupy two full floors, and the deal brings the tower to over 90% occupied.

The 57-story tower at 50 S. 16th St. was built in 1990 and renovated in 2018. The 5-Star property spans 0.76 acres less than two blocks from the Suburban train station.

Industrious’ first existing Philadelphia location is at Industrious Avenue of the Arts in Center City.

Coretrust acquired Two Liberty Place in October 2016 via its Coretrust Value Fund I for $219 million, or about $233 per square foot, CoStar data shows.

“Industrious is the ideal partner for us at Two Liberty Place as it is the premier provider of flexible workspace,” Spike Whitney, vice president of Coretrust, said in a statement.

For more information about Philadelphia office space for sale or lease in Philadelphia or about any other Philadelphia commercial properties for sale or lease, please contact WCRE at 215-799-6900

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier Philadelphia commercial real estate broker that provides a full range of Philadelphia commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Please visit our websites for a full listing of Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.

Center City Coworking Leasing Hits All-Time High in 2019

CoStar Market Insights: Philadelphia Office Fundamentals Are Benefiting As Growing Coworking Operators Move Into This Market for the First Time

Prime Philly Office Space for Lease on Rising Sun Avenue

Medecision Inks Deal at CrossPoint at Valley Forge

Medical Software Company Signs Sublease in Wayne, Pennsylvania

Philadelphia’s Center City Office Rent Growth Outperforms Most East Coast Central Business Districts

Market Stat: Center City Office Rent Growth Outpaces Manhattan, Downtown Boston and the District of Columbia on a Year-Over-Year Basis

Philadelphia’s Unemployment Rate Falls to 30-Year Low

Corporate Downsizings Are Causing Available Office Space to Accumulate in Philly’s Northern Suburbs

Shared Office Space Provider Inks Deal in Center City

Environmental Protection Agency Inks Deal at Four Penn Center Office Tower

Government Agency Signs 173,000-SF Lease in Downtown Philadelphia

Zarwin Baum Devito Kaplan Schaer Toddy P.C. Inks Deal at One Commerce Square

Law Firm Signs Lease at Downtown Philadelphia Office Tower

Industrious Expands Philadelphia Footprint

Flexible Workspace Provider Signs Office Lease at Two Liberty Place

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