The Philadelphia commercial real estate market enjoyed an overall strong year in 2015, with the Philadelphia office space, Philadelphia retail space and Philadelphia industrial space sectors all turning in solid performances, according to the latest quarterly market report from Wolf Commercial Real Estate, a leading Philadelphia commercial real estate brokerage firm with expertise in Philly commercial real estate listings and services including Philly office space, Philly retail space and Philly industrial space.
The quarterly reports Wolf Commercial Real Estate, a Philadelphia commercial real estate broker, have been expanded to include a section on transactions, rates, and news from Philadelphia and the suburbs, reflecting the firm’s 2015 expansion into southeastern Pennsylvania and the Philadelphia commercial real estate market.
Highlights from the fourth quarter on Pennsylvania and the Philadelphia commercial real estate market include:
- Philadelphia remains one of the most affordable markets for Philadelphia office space, but rents are rising due to increased demand from users and investors. The year 2015 saw a record number of Class A office properties traded, and investors are expected to continue focusing on well-located, well-leased Philly office space. Class A office rents are garnering support in the range of $29.40/sf in the central business district and $25/sf in the suburbs.
- The market for Philadelphia retail space is quite strong across all property types and locations and is well positioned to maintain its strength. Asking rents have been stable overall for the Philly retail space market, with sharply rising values for Center City. An ongoing expansion project at the King of Prussia Mall will transform the center into the largest shopping mall in the United States when the project is complete. The retail vacancy rate for community retail properties within the Philadelphia retail space market stood at 5.8 percent for the fourth quarter, which is below the national average of 8.1 percent. At 9.3 percent, the vacancy rate for neighborhood retail centers was somewhat higher but was the same as the sector’s national average.
- The Philadelphia industrial space market experienced a strong 2015, but in the face of record-breaking positive absorption figures in 2014, the 2015 Philly industrial space market was comparatively slow, registering 149 industrial property sales totaling $563 million. But the 2015 performance was sufficient volume to retain stability in rental and vacancy rates, both of which are expected to improve as long as macroeconomic factors remain stable. Price per square-foot for Philadelphia industrial space sales rose to $41.47 in 2015, in comparison to $39.75 in the 2014.
The full quarterly report on the Philadelphia commercial real estate market, which also encompasses the South Jersey commercial real estate market is available upon request from Wolf Commercial Real Estate, a Philadelphia commercial real estate broker with expertise in Philly commercial real estate listings and services
For more information about Philadelphia office space, Philadelphia retail space, Philadelphia industrial space or any Philadelphia commercial properties, please call 215-799-6900 to speak to Jason Wolf (215-588-8800-cell; jason.wolf@wolfcre.com), or Lee Fein (215-206-5580-cell; lee.fein@wolfcre.com) Anthony Mannino (215-470-6084-cell; anthony.mannino@wolfcre.com) or Drew Maristch (215-605-8018-cell; drew.maristch@wolfcre.com) at Wolf Commercial Real Estate, a Philadelphia commercial real estate broker.
Wolf Commercial Real Estate is a premier Philadelphia commercial real estate brokerage firm that provides a full range of Philly commercial real estate listings and services including Philly office space, Philly retail space, Philly industrial space and other Philadelphia commercial properties. We market 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.
