Philadelphia's Office Vacancy Decreases to 11.5%

The Philadelphia Office market ended the third quarter 2013 with a vacancy rate of 11.5%. 

The vacancy rate was down over the previous quarter, with net absorption totaling positive 193,270 square feet in the third quarter. That compares to positive 786,597 square feet in the second quarter 2013. Vacant sublease space decreased in the quarter, ending the quarter at 1,243,897 square feet. 

Tenants moving into large blocks of space in 2013 include: Endo Pharmaceuticals, Inc. moving into 300,000 square feet at Atwater Corporate Center; GlaxoSmithKline moving into 205,000 square feet at Five Crescent Dr; and Drexel University moving into 117,464 square feet at Three Parkway. 

Rental rates ended the third quarter at $21.06, a decrease over the previous quarter. 

A total of three buildings delivered to the market in the quarter totaling 61,700 square feet, with 791,386 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 11.6% from the previous quarter, with net absorption positive 23.48 million square feet in the third quarter. Average rental rates increased to $21.75, and 244 office buildings delivered to the market totaling more than 12.2 million square feet. 
www.omegare.com