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Not all office submarkets were created equal: 9 out of 12 of the tightest submarkets are in the suburbs

  • ​Despite a slow quarter of market activity, Q3 numbers demonstrate an ongoing tightness in many of the Philadelphia region’s most desirable office submarkets. Nine out of 12 of the tightest submarkets were in suburban locations, and the Wilmington Riverfront demonstrated occupancy levels bordering on those of the Philadelphia Navy Yard.
  • Urban submarkets have played an important role in this market cycle, driving the vast majority of new construction. A clear case, however, can be made for renovating outdated office product in strong suburban locations. With occupancy levels at landlord favorable rates (>90%) in all of these submarkets, it’s a question of where rental rates have risen enough to justify the expense of Philadelphia’s construction costs. Conshohocken, Bala Cynwyd, and Radnor are the only submarkets that come close to this level (>$30 per square foot). ​

Source: JLL Research

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