Marcus & Millichap

Philadelphia Local Office Report

Second Quarter 2019

Access Full Report Subscribe

Moderating Construction and Greater Leasing Activity Drive Down Vacancy, Boost Rents

Growing businesses devour space, lifting marketed rates. A strong first quarter supports an increasingly positive outlook for Philadelphia office properties in 2019. Corporate expansions and relocations are driving demand, underpinning lower vacancy and faster rent growth. This is especially true in Center City, where availability lies below that of the rest of the market, generating above-average rent appreciation. Several submarkets outside the central business district are also outperforming the metro. The colleges and hospitals in University City draw medical tenants, benefiting local offices. Suburban locales with malls or walkable town centers that support amenities for office workers are also reporting stronger fundamentals, as is the case with the Main Line submarkets.

Access Full Report Subscribe