Monday, January 9, 2012

Philadelphia's Office Vacancy Decreases to 11.6%

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

The vacancy rate was down over the previous quarter, with net absorption totaling positive 393,606 square feet in the fourth quarter. Vacant sublease space decreased in the quarter, ending the quarter at 1,544,892 square feet.

Tenants moving into large blocks of space in 2011 include: Quest Diagnostics moving into 136,919 square feet at 1001 Adams Ave; Janney Montgomery Scott LLC moving into 125,418 square feet at Three Logan Square; and AIM moving into 61,483 square feet at River Park 2.

Rental rates ended the fourth quarter at $21.03, an increase over the previous quarter.

A total of seven buildings delivered to the market in the quarter totaling 139,082 square feet, with 1,845,995 square feet still under construction at the end of the quarter.

This trend is compared to the U.S. national office vacancy rate, which decreased to 12.3% from the previous quarter, with net absorption positive 21.73 million square feet in the fourth quarter.
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