Philadelphia’s office market ranked eighth nationally for total absorption during Q3 2019
The Philadelphia regional office market realized 784,247 s.f. of positive absorption in Q3 2019, bringing the total regional vacancy to 13.7%.
October 23, 2019
- Led by the openings of Five City Center in Allentown and the Triad1828 Centre in Camden, the Philadelphia regional office market realized 784,247 s.f. of positive absorption in Q3 2019, bringing the total regional vacancy to 13.7%. At Five City Center, ADP has occupied 254,000 s.f. after vacating One Windsor in Allentown, bringing occupancy at the recently delivered building to 83%. The Michaels Organization, NFI, and Connor Strong & Buckelew each moved into 65,694 s.f. across three floors at the 197,000 s.f. Triad1928 Centre in Camden. Moving to Camden meant that The Michaels Organization vacated 3 E. Stow Road in Marlton, NFI vacated 1005-1007 Laurel Oak Road and 220 Laurel Road in Voorhees, and Connor Strong & Buckelew vacated 40 Lake Center in Marlton. Each of these spaces was either owner-occupied or has been backfilled.
- Other notable absorption events around the region include Sallie Mae expanding and the State of Delaware relocating to the Churchman’s Corporate Center in New Castle County, netting 126,950 s.f. of positive absorption at that property. In the Philadelphia CBD, Bennett Brinklin & Saltzburg moved in to 28,000 s.f. at Centre Square, Aberdeen moved in to 50,482 s.f. at 1900 Market, and Make Offices opened a 33,000 s.f. operation at The Bourse, making them the largest coworking operator in Independence Hall.
- Based on recent lease signings and survey data indicating that tenants in the market are looking to grow their footprint, we expect overall vacancy rates to drop in the CBD and primary suburban submarkets in the short-term. However, several large users are expected to trade up to new construction and new build-to-suits, which may create notable negative absorption events in the quarters to come pending owners’ ability to backfill older office product.
Source: JLL Research