After seven years of rising office sublease availability, Philadelphia’s office market shows signs of recovery. By late 2024, the proportion of sublet space in the total available inventory dropped to 15.1%, down from a peak of 16.8% in mid-2023. This marks a shift after years of increasing sublet availability, indicating that the worst of the… Read more »
Office landlords nationwide continue to face numerous challenges in the post-pandemic recovery, yet one Philadelphia developer is finding renewed optimism with a gradual rise in leasing activity. Brandywine Realty Trust, a Philadelphia-based REIT, reports increased touring and leasing across its U.S. office portfolio as companies regain confidence in expanding their real estate presence. CEO Jerry… Read more »
The asking office rents in Philadelphia have remained resilient and even increased in recent years. However, effective rents, which account for inflation and concessions, paint a more complex picture. As a result, asking rents are no longer as reliable an indicator of occupancy costs and office market performance as they once were. From 2010 to… Read more »
Despite concerns about Philadelphia’s downtown office market, Center City’s Market Street West remains a key leasing destination, leading the region. In the first half of 2024, it secured 548,000 square feet in new leases. Notable deals include Clark Capital’s 37,500-square-foot lease at One Liberty Place and Ballinger’s 46,500-square-foot lease at 1650 Arch St. Several law… Read more »
After a citywide revaluation, the assessed value of Philadelphia office buildings fell by nearly 6%. The City of Philadelphia expects this decline to deepen as property owners appeal their assessments. The 2025 property assessments, released this week, show a $635 million drop in taxable value, bringing total office valuations to about $10.73 billion, down from… Read more »
To an outsider, Philadelphia’s office’s use of statistics might suggest it should be one of the hardest-hit cities, struggling with reduced foot traffic and empty buildings. However, the City of Brotherly Love is thriving, offering a model for other urban office markets facing high vacancy rates and quiet downtowns as they recover from the pandemic…. Read more »
A New York real estate investment firm is in talks to sell two more Old City properties after recently unloading nearby buildings. KKR Real Estate Finance Trust Inc. (NYSE: KREF) plans to sell the 209,700-square-foot office building at 325 Chestnut St. and the 469-spot Bourse parking garage at 400 Ranstead St. The firm recently sold… Read more »
A Philadelphia nonprofit has chosen to extend and enlarge its lease, standing out as one of the noteworthy office deals in the city this year. This decision reflects a growing trend among tenants to invest in larger office spaces. The Defender Association of Philadelphia, which provides legal assistance to underprivileged criminal defendants, has confirmed its… Read more »
The sale of the Bourse building and 400 Market St. in Old City has closed at a combined price of $41 million, according to industry sources. Philadelphia developers Lubert-Adler Real Estate Funds and Keystone Development and Investment paid $31 million for the 129-year-old Bourse building at 111 S. Independence Mall East and $10 million for… Read more »
Three years after buying and renovating the former Nelson building, Vert Properties has leased half of the Society Hill property and expects 80% occupancy by year-end. Fifteen companies have already taken space in the three-story, 30,000-square-foot building at 222-230 Walnut St., with an average of 1,000 square feet per tenant. The property offers a hybrid… Read more »
