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With only 0.65 blocks currently available for each expiring CBD tenant ≥100,000 square feet, large tenants looking to move should engage the market ASAP

• As the CBD continues through its large lease rollover cycle, 4.65 million square feet of large tenants (40,000 square feet and greater) are set to expire between now and 2021. While this large lease rollover cycle creates some interesting opportunities for tenants occupying 1-2 floors, the largest tenants in the market (100,000 square feet and greater) looking to stay in Philly will experience extremely constrained options.

• Twenty tenants over 100,000 square feet expire between now and the end of 2021, but there are only 13 large block options for these tenants, assuming the availability of four new construction options no sooner than 2021. With these new construction options, there are 0.65 blocks available per tenant; without, only 0.45 blocks per tenant. This is to say nothing of quality or geographic desirability. Large, out-of-market occupiers, as well as relocations that force the occupation of two blocks during construction, could further disrupt the large tenant supply/demand equation, likely forcing renewals in place in some cases.

Source: JLL Research

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