Certain submarkets driving availability uptick across Greater Philadelphia
Across the entire Philadelphia market, office availability has moved little in a year
June 26, 2019
- Across the entire Philadelphia market, office availability has moved little in a year: amongst A & B buildings, only 681,000 more square feet are available to lease today relative to the same moment in 2018. However, this marginal net change is covering up major shifts at the submarket level.
- Among the biggest upticks are Fort Washington, where Ditech and Ocwen are ceasing operations, offset in part by Toll Brothers, which explains much of Horsham’s change; Bala Cynwyd, which is set to lose Hamilton Lane; and Wilmington, where Bank of America sold and vacated two buildings. On the flip side, Wilmington’s suburbs are doing far better, with new projects like STAR Tower leasing up and companies expanding; Radnor backfilling the temporary glut created by companies seeking cheaper spaces elsewhere; and a steady stream of expansions by healthcare groups, coworking companies, and others in Center City.
- Factors beyond company expansions, relocations, and dissolutions affect the severity of these swings: smaller markets are affected more easily by a single tenant’s action, and in select places, availability has risen because of pending construction projects offering future available space.
Source: JLL Research