Speculative, ground-up office construction in the Pennsylvania suburbs has been non-existent: only 284,300 square feet have been delivered since 2014
- A look at office renovations and ground-up construction in the Pennsylvania suburbs shows that only 14 projects have delivered over the past five years. Of those projects, ground-up, speculative construction accounts for only 15 percent of the total newly development supply. Since only 1.8 million square feet of space has been renovated or constructed since 2014, this lack of new supply has seriously constrained tenant options in modern buildings.
- The regional distribution of speculative projects has been limited to three areas in the western suburbs. Malvern, the Main Line, and West Chester are the only areas that have experienced speculative office construction since 2014. The transit-oriented nature of each location offers commuters options in a densely packed region. Developers are wagering on the benefits of transit access with new projects on the horizon for 2019. Equus Capital Partners announced plans to develop a 145,000 square foot speculative office building at 645 E Swedesford Road in Wayne, capitalizing on the momentum of King of Prussia and the site’s strategic location on the 202 Corrido
Source: JLL Research