Friday, October 14, 2011

Market Trend: Philadelphia's Office Vacancy Decreases to 11.6%

"The Philadelphia Office market ended the third quarter 2011 with a vacancy rate of 11.6%.

The vacancy rate was down over the previous quarter, with net absorption totaling positive 1,127,518 square feet in the third quarter. Vacant sublease space decreased in the quarter, ending the quarter at 1,551,066 square feet.

Tenants moving into large blocks of space in 2011 include: Quest Diagnostics moving into 136,919 square feet at 1001 Adams Ave; Broadview Networks moving into 57,209 square feet at Valley Forge Park Place - Bldg 2; and Avantor Performance Materials moving into 56,972 square feet at Saucon Valley Plaza.

Rental rates ended the third quarter at $20.95, an increase over the previous quarter.

A total of four buildings delivered to the market in the quarter totaling 41,483 square feet, with 1,431,502 square feet still under construction at the end of the quarter.

This is compared to the U.S. national office vacancy rate, which decreased to 12.5% from the previous quarter, with net absorption positive 23.7 million square feet in the third quarter."

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