Philly Office Space Vacancy Rate Among Lowest in U.S.

Philadelphia’s office market is rounding out 2019 in good health.

Thanks in large part to minimal levels of new construction, the vacancy rate in the Philadelphia commercial real estate market remains among the lowest of any major market in the U.S., and tighter than current vacancy levels in Chicago, Los Angeles and Washington, D.C.

Leasing by life science, health care and coworking tenants have helped propel rent growth in centrally located submarkets involving Philly office space in such areas as University City and Market Street West to more than 4 percent year-over-year.

This CoStar Realty Information Inc. report involving Philadelphia commercial properties is being made available through Philadelphia commercial real estate broker Wolf Commercial Real Estate, a Philadelphia commercial real estate brokerage firm. You can view the report by clicking here.

There are some signs of weakness under the surface. As low unemployment and an increasingly weaker economic outlook make it more challenging for companies to expand their payrolls, job growth in the Philly office space market is slowing and office tenant expansions have been following suit.

But compared to most major U.S. markets, Philadelphia remains well positioned to weather any potential economic slowdown. Sky-high local construction costs in the Philly office space market has kept office construction to a minimum here, meaning there’s no risk of speculative office development driving up vacancies over the next two years. Meanwhile, the local economy’s outsized exposure to the nearly recession proof healthcare sector also limits downside risks. – By Adrian Ponsen, CoStar Realty Information Inc.

For more information about Philly office space or other Philadelphia commercial properties, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@wolfcre.com) at Wolf Commercial Real Estate, a leading Philadelphia commercial real estate broker that specializes in Philly office space.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier Philadelphia commercial real estate brokerage firm 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, rettail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Wolf Commercial Real Estate, a Philadelphia commercial real estate broker with expertise in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new Philly office space with the Philadelphia commercial properties that best meets their needs.

As experts in Philadelphia commercial real estate listings and services, the team at our Philadelphia commercial real estate brokerage firm provides ongoing detailed information about Philadelphia commercial properties to our clients and prospects to help them achieve their real estate goals. If you are looking for Philly office space for sale or lease, Wolf Commercial Real Estate is the Philadelphia commercial real estate broker you need – a strategic partner who is fully invested in your long-term growth and success.

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

Architectural firm moving HQ to Center City

Formcraft, an architectural firm based in Delaware County, has decided to relocate its headquarters to Philadelphia and bring a total of 31 jobs to the city.

The move comes after the company opened a Philadelphia satellite office in 2016 in 2,800 square feet at 1515 Market St. “Our goal at that point was to get our foot in the door and test the waters and figure out where we really wanted to be,” said Owen Druckenmiller, managing director at Formcraft. “Earlier this year, we realized how much better it would be under one roof.”

It was also became apparent the company’s location at 712 Henderson Road in Folcroft wasn’t giving it the access it needed to talent. The building, which it owns, isn’t convenient to mass transit and the location is not as hip as Center City.

The company made the decision in April and accelerated plans to make the move to Philadelphia. In its search for new space, the company knew it wanted to be in a trophy building to reflect the type of clients it provides architectural services. Formcraft focuses on corporate office interiors and it is working on an 8,000-square-foot space for CapREIT at Two Liberty Place and a 16,000-square-foot headquarters for AGC Chemicals Americas Inc. in Exton.

Formcraft narrowed its choices to Two Logan Square, 1735 Market St., and Two Commerce Square. It signed a deal for 8,500 square feet at Two Commerce Square.

“This fits into our continued growth plans,” Druckenmiller said. “The company has been growing over the last eight years and it’s going to help continue that growth and give us access to talent.”

The company is figuring out what it will do with its 8,000-square-foot building in Folcroft. The structure sits on 2 acres and is not far from Philadelphia International Airport. Options include possibly redeveloping it or selling.

The company will move November into Two Commerce Square.

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 Philadelphia Biz Journal, Natalie Kostelni

Philly Office Space for Lease at 6712-6714 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 well-located 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 an excellent office layout for either a medical office or a legal 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 15,000 vehicles a day pass this Philadelphia office space for lease and more than 39,000 people reside within a one-mile radius of this office space in Philadelphia. The average household income in that same area near this Philly office space for lease is $55,847.

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 Ty Martin (215-799-6144; ty.martin@wolfcre.com) or Mitch Russell (215-799-6143; mitch.russell@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.

Philadelphia’s Market Street West Vacancies Near 10-Year Low

CoStar Market Insights: Center City Philadelphia’s Minimal New Office Construction and Rising Rents Have Local Office Owners in a Comfortable Position Heading Into Late 2019

Philadelphia’s largest office submarket, Market Street West, wrapped up the second quarter in good health.

As cited in the latest Market Street West video update, the submarket’s vacancy rate is holding steady around 8%, close to a 10-year low and even tighter than vacancy rates in other prime northeast submarkets, including Washington, D.C.’s, CBD, and the Plaza District in Midtown Manhattan.

Market Street West’s office absorption has been slightly negative year-to-date, but the complete lack of new office construction underway has helped keep the overall market tight and asking rents growing by over 6% year-over-year.

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, August 2, 2019

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

Philly Office Space Vacancy Rate Among Lowest in U.S.

Architectural firm moving HQ to Center City

Philly Office Space for Lease at 6712-6714 Rising Sun Avenue

Philadelphia’s Market Street West Vacancies Near 10-Year Low

CoStar Market Insights: Center City Philadelphia’s Minimal New Office Construction and Rising Rents Have Local Office Owners in a Comfortable Position Heading Into Late 2019

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

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