Tuesday, October 9, 2012

Philadelphia's Office Vacancy Increases to 11.5%

The Philadelphia Office market ended the third quarter 2012 with a vacancy rate of 11.5%. 

Net absorption for the overall Philadelphia office market was negative 1,046,919 square feet in the third quarter 2012. That compares to positive 150,752 square feet in the second quarter 2012. Vacant sublease space decreased in the quarter, ending the quarter at 1,137,302 square feet. 

Tenants moving into large blocks of space in 2012 include: Young Conaway Stargatt & Taylor, LLP. moving into 218,335 square feet at The Courthouse; Marshall, Dennehey, Warner, Coleman & Goggin moving into 131,325 square feet at 2000 Market St; and Philadelphia Media Network Inc moving into 125,000 square feet at 801 Market St. 

Rental rates ended the third quarter at $20.96, a decrease over the previous quarter. 

A total of two buildings delivered to the market in the quarter totaling 17,500 square feet, with 1,809,842 square feet still under construction at the end of the quarter. 

This trend is compared to the U.S. National Office vacancy rate, which stayed at12.1% from the previous quarter, with net absorption positive 15.09 million square feet in the third quarter. 

Full report: http://www.omegare.com/Costar-3Q2012-Market-Report-Office.pdf

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