Radnor and King of Prussia lead the way at the end of 2019 for Suburban Philadelphia submarkets
When examining the performance of Suburban Philadelphia’s primary and secondary submarkets in 2019, Radnor and King of Prussia came away as the clear top achievers, both reducing their low vacancies further by ending the year with absorption as a percentage of inventory above the suburban Philadelphia average.
- Focusing on Radnor, with a vacancy of 5.3% as a result of move-in’s by FXI and M&T bank, the only real large block availability is at Brandywine’s proposed 155 King of Prussia Road, meaning anyone interested in the property (and Radnor for that matter) will need to take at least 75,000 s.f. to meet the pre-leasing requirement to begin construction on one of the last development sites in the submarket. In King of Prussia / Wayne, the Class A inventory there was the real story, with a 2019 total net absorption of 2.9% of inventory that drove Class A vacancy down to 12.2%.
- Looking at the submarkets with the highest negative absorption as a percentage of inventory, Conshohocken, Fort Washington, and Malvern/Exton all had total 2019 negative absorption of more than 100,000 square feet, with Teva Pharmaceuticals move to Parsippany, NJ contributing to 187,000 of the 336,000 square feet of negative absorption experienced in that submarket during the entire year. Teva’s move was prompted by a $40 million tax break awarded to them by the State of New Jersey. Moving our attention out to Fort Washington, both Ditech and Ocwen combined to vacate 160,000 square feet of space at 1100 Virginia in the 2nd Quarter of 2019, which contributed to a large chunk of Fort Washington’s 230,000 square feet of negative absorption during the year.
Source: JLL Research