The Philly office space vacancy rate rose in the first quarter 2015, closing the quarter at 10.8%, according to a new market report from the CoStar Group.
The vacancy rate for office space in Philadelphia in the first quarter was an increase over the previous quarter, the CoStar Group’s First Quarter 2015 Market Report noted. Net absorption was negative 386,143 square feet of office space in Philly for the first quarter, compared to positive 378,460 square feet of Philadelphia office space in the fourth quarter, CoStar said.
Vacant sublease space in the market for office space in Philadelphia was up in the first quarter, closing at 1,306,325 square feet of Philly office space, CoStar added.
Among tenants moving into large blocks of office space in Philly in 2015 were: Incyte Corporation, moving into 191,056 square feet of Philly office space at 1801 Augustine Cut Off; and National Penn Insurance Services, moving into 126,369 square feet of office space in Philadelphia at 645 West Hamilton Street, the report noted.
Philadelphia office space rental rates ended the quarter at $21.89, an increase over the fourth quarter, according to the report.
Seven buildings were delivered to the market for office space in Philly in the first quarter, CoStar reported. That tally added 145,650 square feet of Philly office space to the market. Another 2,602,750 square feet of office space in Philadelphia remained under construction at the end of the first quarter, CoStar said.
Comparatively, national office vacancies dropped to 10.9% in the first quarter, CoStar reported. Net absorption was positive 15.4 million square feet for the quarter, the report noted. Average rental rates increased to $22.74 and 244 office buildings delivered in the quarter, bringing more than 16.5 million square feet to the national market, according to CoStar.
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