Philly Office Space Fourth Quarter Construction, Deliveries, Inventory

research-information-graphic-phlThe Philly office space market received, during the fourth quarter of 2014, two new office buildings totaling 343,850 square feet, according to the CoStar Group’s newest market trend report. This was in contrast to the third quarter 2014 when two buildings that add up to 219,036 square feet were finished in the Philadelphia office space market, CoStar said.

At the end of the fourth quarter, an additional 2,966,000 square feet of office space in Philadelphia was still under construction, according to CoStar’s Third Quarter 2014 Market Report.

Deliveries of note in the Philadelphia office space market in 2014 were: 3737 Market St, a 340,000-square-foot facility that delivered in fourth quarter 2014 and is now 83% occupied, and Two City Center, a 296,025-square-foot building that delivered in second quarter 2014 and is now 96% occupied the market report said.

The largest projects being erected by the completion of the fourth quarter 2014 were Comcast Innovation & Technology Center, a 1,336,682-square-foot building with 100% of its space pre-leased, and FMC Tower / Walnut Street Tower, an 830,000-square-foot facility that is 65% pre-leased.

Total office inventory in the Philadelphia market area was 405,122,371 square feet in 21,069 buildings as of the end of the fourth quarter 2014. The Class-A office sector was 129,738,709 square feet in 967 projects. The office market had 980 owner-occupied buildings with 37,342,438 square feet of office space.

This trend is like the U.S. National Office deliveries and construction, which was 194 buildings totaling 15.92 million square feet complete construction, with more than 117.6 million square feet of office space still under construction at the end of the fourth quarter.

One Franklin Park, a 267,751-square-foot facility opened in Tennessee as did, in Houston the 1 million-square-foot ExxonMobil Campus – Ph. 1. At the same time, the 366,858-square-foot North Hills Tower II in the Raleigh/Durham market was being built. This makes inventory of office space in America nearly 10.47 billion square feet in more than 503,600 buildings at the end the fourth quarter of 2014. This also counted 22,000 owner-occupied buildings with 937 million square feet.

For more information about office space in Philly or any Philadelphia commercial properties, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@wolfcre.com), Leor Hemo (leor.hemo@wolfcre.com) or Lee Fein (lee.fein@wolfcre.com) at Wolf Commercial Real Estate, a leading Philadelphia commercial real estate broker that specializes in office space in Philadelphia.

Wolf Commercial Real Estate is a Philadelphia commercial real estate brokerage firm that provides a full range of Philadelphia commercial real estate listings and services, marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Wolf Commercial Real Estate, a Philadelphia commercial real estate broker with expertise in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new Philadelphia office space with the Philadelphia commercial properties that best meets their needs.  As experts in Philadelphia commercial real estate listings and services, the team at our Philadelphia commercial real estate brokerage firm provides ongoing detailed information about Philadelphia commercial properties to our clients and prospects to help them achieve their real estate goals.  If you are looking for Philly office space for sale or lease, Wolf Commercial Real Estate is the Philadelphia commercial real estate broker you need — a strategic partner who is fully invested in your long-term growth and success.

Please visit our websites for a full listing of South Jersey and Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.

Strong Demand for U.S. Office Space Expected through 2016

research-information-graphic-phlDemand for U.S. office space is predicted to continue at post-recession highs for two years, thanks to declining vacancy rates and rising rents in an increasing number of submarkets, a new report from the CoStar group says.

A CoStar Portfolio Strategy analyst, reporting in CoStar’s State of The U.S. Office Market 2014 Review and Forecast, also attributed the positive outlook to the U.S. office space market’s stellar performance in 2014.  Net absorption in 2014 increased 42% from 2013 levels, with the fourth quarter alone seeing net absorption of more than 30 million square feet, according to the report.

In the U.S. market, net absorption of office space went from 64 million square feet in 2013 to 91 million square feet in 2014, CoStar noted.  The level of U.S. office space absorbed in 2014 was twice the level of new U.S. office space brought to the market, CoStar said.

CoStar expects annual absorption to remain near the 90 million square-foot mark through 2016.  Construction deliveries are anticipated to rise over the two-year period as increasing rents and tightening vacancy rates encourage new development.

The healthy demand for U.S. office space clearly demonstrates occupiers are no longer following the trend of shrinking square foot-per-employee office footprints, CoStar reported.  The analysis also said the shadow supply of empty office space that has been lingering since the Great Recession is now thinning with growth continuing at a “very strong clip.”

The vacancy rate for U.S. office space plummeted 70 basis points from 12% to 11.3% in the year just ended, representing the single largest drop since the end of the recession, CoStar noted.  Vacancies were down across the board across markets, submarkets and building types and quality levels, with the one exception being vacancy rates for medical office properties, which remained at their historically solid 9.6% levels, CoStar added.

With almost every metro market posting year-over-year declines in vacancy rates, many markets are dropping below the national average for office space vacancies, CoStar said.  The single exception in this area is the Washington, D.C. market, where vacancies increased slightly, mostly because of strong constructions activity.

The drop in vacancies in office submarkets is a “feel-good story across the country,” a CoStar analyst reported.  Newer properties have recovered more strongly as vacancies for 2008 and newer buildings fell from a high of 45% in 2008 to almost 10% in the last quarter of 2014.  Meanwhile, older buildings from the 1980s haven’t recovered at all, CoStar noted.  More and more tenants are opting for buildings in Central Business Districts (CBDs) or the closer-in suburban markets, but the older 1980s buildings often can be found in less desirable outer-ring suburban submarkets, CoStar said.

The analysis also noted that demand for high-quality space is on the rise.  Newer 4 and 5 Star space saw double the rate of absorption than did lower-quality space.  High-quality space rose 2% from 2013 to 2014, compared to 0.9% for 1-, 2- and 3-star space, the report explained.

For more information about Philadelphia office space or other Philadelphia commercial properties, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@wolfcre.com) or Leor Hemo (leor.hemo@wolfcre.com) at Wolf Commercial Real Estate, a premier Philadelphia commercial real estate broker that specializes in Philly office space.

Wolf Commercial Real Estate is a Philadelphia commercial real estate brokerage firm that specializes in Philadelphia office space, providing a full range of Philadelphia commercial real estate listings and services, marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Wolf Commercial Real Estate, a Philadelphia commercial real estate broker with extensive expertise in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new Philly office space with the Philadelphia commercial properties that best meets their needs.  As experts in Philadelphia commercial real estate listings and services, the team at our Philadelphia commercial real estate brokerage firm provides ongoing detailed information about Philadelphia commercial properties, including Philly office space, to our clients and prospects to help them achieve their real estate goals.  If you are looking for Philadelphia office space for sale or lease, Wolf Commercial Real Estate is the Philadelphia commercial real estate broker you need — a strategic partner who is fully invested in your long-term growth and success.

Please visit our websites for a full listing of South Jersey and Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.

Philadelphia Office Space Vacancies Steady at End of Fourth Quarter

research-information-graphic-phlVacancies for the Philadelphia office space market remained stable at year end 2014, finishing the fourth quarter at 10.8%, a new market trend report from the CoStar Group said.

The fourth quarter’s Philly office space vacancy rate was the same as the third quarter’s vacancy rate, according to the CoStar Group’s Fourth Quarter 2014 Market Report.

Net absorption totaled positive 408,343 square feet of office space in Philly in the fourth quarter, CoStar noted, compared to net absorption of 319,373 square feet of Philly office space at third quarter’s end, the market trend report said.

Vacant sublease space for office space in Philadelphia decreased in the fourth quarter 2014, with 1,363,785 square feet of Philadelphia office space reported at the end of the quarter, the company said.

Three notable tenants moved into large blocks of office space in Philly in 2014, CoStar reported.  They were:  L3 Communication Systems-East, moving into 233,333 square feet in the Philly office space market at Camden Innovation Campus; The Vanguard Group, moving into 204,000 square feet of Philadelphia office space at Great Valley Corp Center; and Beneficial Mutual Bancorp, Inc. moving into 95,764 square feet of office space in Philadelphia at 1818 Beneficial Bank Place.

Rental rates for office space in Philly rose in the fourth quarter to $21.80 by year’s end, according to the report.

The Philly office space market grew by 343,850 square feet in the fourth quarter with the delivery of two buildings to the market for office space in Philadelphia.  CoStar said 2,966,000 square feet still of Philadelphia office space was still under construction at the end of the quarter.

In comparison, the vacancy rate for the U.S. office market declined to 10.9% in the fourth quarter, according to CoStar.  Net absorption stood at positive 37.53 million square feet at year end 2014, the company said.  Average rental rates for the U.S. market increased to $22.65 in the quarter and 194 buildings totaling almost 15.9 million square feet delivered to the U.S. market in the fourth quarter, CoStar noted.

For more information about Philly office space or any Philadelphia commercial properties, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@wolfcre.com), Leor Hemo (leor.hemo@wolfcre.com) or Lee Fein (lee.fein@wolfcre.com) at Wolf Commercial Real Estate, a leading Philadelphia commercial real estate brokerage firm with expertise in Philadelphia office space.

Wolf Commercial Real Estate is a Philadelphia commercial real estate broker that provides a full range of Philadelphia commercial real estate listings and services, marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Wolf Commercial Real Estate, a Philadelphia commercial real estate broker that specializes in Philadelphia commercial real estate listings and services, provides unparalleled expertise in matching companies and individuals seeking new Philly office space with the Philadelphia commercial properties that best meets their needs.  As experts in Philadelphia commercial real estate listings and services, the team at our Philadelphia commercial real estate brokerage firm provides ongoing detailed information about Philadelphia commercial properties to our clients and prospects to help them achieve their real estate goals.  If you are looking for office space in Philadelphia for sale or lease, Wolf Commercial Real Estate is the Philadelphia commercial real estate broker you need — a strategic partner who is fully invested in your long-term growth and success.

Please visit our websites for a full listing of South Jersey and Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.

Philly Office Space Deliveries, Construction and Inventory

research-information-graphic-phlThe market for Philly office space saw two new office buildings totaling 219,036 square feet delivered in the third quarter 2014, according to the CoStar Group’s newest market trend report.  This was down from the second quarter 2014 when nine building totaling 455,834 square feet were complotted in the Philadelphia office space market, CoStar said.

At the end of the third quarter, another 3,506,297 square feet of office space in Philadelphia was still under construction, according to CoStar’s Third Quarter 2014 Market Report.

Deliveries of note in the Philadelphia office space market in 2014 were:  Two City Center, a 296,025-square-foot structure that delivered in the second quarter, and Five Crescent Drive, a 207,779-square-foot facility that was completed in the first quarter and is now fully occupied, the market report said.

The two largest projects that remained under construction in the market for office space in Philly at the end of the third quarter were Comcast Innovation & Technology Center, a 1,566,794-square-foot facility and FMC Tower / Walnut Street Tower, an 830,000-square-foot building, according to CoStar.

At the end of the third quarter 2014, total inventory in the Philly office space market stood at 402,879,847 square feet in 20,930 projects, CoStar said.  Of that total, the Class-A office sector of the Philadelphia office space market totaled 129,867,900 square feet in 966 buildings.  Owner-occupied buildings in the market for office space in Philadelphia stood at 985,  representing 37,487,321 square feet of office space in Philly, the market report said.

In comparison to the third quarter Philly office space trends, 233 projects consisting of 13.16 million square feet were delivered to the U.S. national office market by quarter’s end, according to CoStar.  An additional 108.2 million square feet of office space in the national market was still under construction at the end of the third quarter, the report noted.

The Boston market saw the delivery of a 321,503-square-foot building at 8 Education Street in the third quarter, while a 409,000-square-foot facility at 3965 Eagan Outlets Parkway delivered in the Minneapolis market, according to the report.  Additionally, the 1.5 million-square-foot State Farm Campus in the Dallas/Fort Worth market remains under construction, CoStar said.  At the end of the third quarter, the national market’s total office inventory stood at nearly 10.44 billion square feet in more than 502,400 buildings.  This inventory includes 930 million square feet in 22,000 owner-occupied buildings, the report said.

For more information about office space in Philly or any Philadelphia commercial properties, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@wolfcre.com), Leor Hemo (leor.hemo@wolfcre.com) or Lee Fein (lee.fein@wolfcre.com) at Wolf Commercial Real Estate, a leading Philadelphia commercial real estate broker that specializes in office space in Philadelphia.

Wolf Commercial Real Estate is a Philadelphia commercial real estate brokerage firm that provides a full range of Philadelphia commercial real estate listings and services, marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Wolf Commercial Real Estate, a Philadelphia commercial real estate broker with expertise in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new Philadelphia office space with the Philadelphia commercial properties that best meets their needs.  As experts in Philadelphia commercial real estate listings and services, the team at our Philadelphia commercial real estate brokerage firm provides ongoing detailed information about Philadelphia commercial properties to our clients and prospects to help them achieve their real estate goals.  If you are looking for Philly office space for sale or lease, Wolf Commercial Real Estate is the Philadelphia commercial real estate broker you need — a strategic partner who is fully invested in your long-term growth and success.

Please visit our websites for a full listing of South Jersey and Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.

Philly Office Space Vacancy Rate Steady at 11%

research-information-graphic-phlThe vacancy rate for Philly office space remained steady in the third quarter 2014, ending the quarter at 11% for the Philadelphia office space market, according to a new market trend report from the CoStar Group.

The vacancy rate was unchanged from the second quarter 2014, according to CoStar’s Third  Quarter 2014 Market Report.

Net absorption stood at positive 131,961 square feet of Philadelphia office space in the third quarter 2014, the report said.  Net absorption was positive 760,857 square feet of office space in Philadelphia at the end of the second quarter, CoStar said.

Meanwhile, vacant sublease space rose in the quarter, ending the third quarter at 1,388,566 square feet of Philly office space, according to the report.

Several tenants moved into large blocks of office space in Philly in 2014, CoStar said, including:  The Vanguard Group, moving into 204,000 square feet of Philly office space at Great Valley Corp Center; The Harrisburg University of Science & Technology, taking 149,820 square feet at Harrisburg University Academic Center; and Beneficial Mutual Bancorp, Inc. moving into 95,764 square feet of Philadelphia office space at 1818 Beneficial Bank Place.

Rental rates for office space in Philadelphia were up over the second quarter, closing the third quarter at $21.62, CoStar noted.

Two buildings totaling 219,036 square feet of Philly office space were delivered to the Philadelphia office space market in 2014’s third quarter, CoStar said.  Another 3,506,297 square feet of office space in Philly remained under construction third quarter’s end, according to the report.

In the national office market, CoStar noted that the vacancy rate dropped from second quarter levels, ending the third quarter 2014 at 11.2%.  Net absorption was positive 27.56 million square feet at the end of the third quarter 2014, the report said.  Average national rental rates were up for the quarter, ending at $22.38, according to CoStar.  Nearly 13.2 million square feet in 233 buildings delivered to the market in the third quarter, CoStar said.

For more information about Philadelphia office space or any Philadelphia commercial properties, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@wolfcre.com), Leor Hemo (leor.hemo@wolfcre.com) or Lee Fein (lee.fein@wolfcre.com) at Wolf Commercial Real Estate, a leading Philadelphia commercial real estate broker that specializes in office space in Philadelphia.

Wolf Commercial Real Estate is a Philadelphia commercial real estate brokerage firm that provides a full range of Philadelphia commercial real estate listings and services, marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Wolf Commercial Real Estate, a Philadelphia commercial real estate broker that specializes in Philadelphia commercial real estate listings and services, provides unparalleled expertise in matching companies and individuals seeking new office space in Philly with the Philadelphia commercial properties that best meets their needs.  As experts in Philadelphia commercial real estate listings and services, the team at our Philadelphia commercial real estate brokerage firm provides ongoing detailed information about Philadelphia commercial properties to our clients and prospects to help them achieve their real estate goals.  If you are looking for Philadelphia office space for sale or lease, Wolf Commercial Real Estate is the Philadelphia commercial real estate broker you need — a strategic partner who is fully invested in your long-term growth and success.

Please visit our websites for a full listing of South Jersey and Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.

New Subsidies for East Market Project in Philly Office Space Market

philadelphia-skylineThe Philly office space market got a boost this week with a new infusion of subsidies for the much-anticipated East Market project in Center City Philadelphia.

The state of Pennsylvania has earmarked another $2.5 million in Redevelopment Assistance Capital Program (RACP) funds and the City of Philadelphia has committed $4 million in city funds to the group of developers behind the $230 million redevelopment plan that will bring new Philadelphia office space, Philadelphia retail space and apartment housing to Center City.

Pennsylvania Gov. Tom Corbett’s office said East Market already stood to receive $7.5 million in RACP funds, which are matching grants that are paid once a project is completed.

The massive East Market project covers the redevelopment of the 1100 block of Market Street, an important component in the Philly office space market.  Site prep work on the former Girard Square is already underway.  Demolition for the first phase is scheduled to begin in mid-October with construction slated to start in early 2015.  The redevelopment plan will bring 650,000 square feet of Philadelphia office space, Philadelphia retail space and apartment housing to the city.

Later stages of the project will depend on market conditions, including the market for office space in Philly.  Eventually, all of the structures on an entire city block bound by Market, Chestnut, 11th and 12th streets will be either renovated or replaced.

A 17-story tower with 160,000 square feet of Philadelphia retail space and 322 apartment units will be erected in phase one.  The initial phase also will include renovation of the 200,000-square-foot family court building which will have Philadelphia retail space at street level and Philadelphia office space above.

For more information about office space in Philly or any Philadelphia commercial properties, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@wolfcre.com) or Leor Hemo (leor.hemo@wolfcre.com) at Wolf Commercial Real Estate, a leading Philadelphia commercial real estate broker that specializes in Philly office space.

Wolf Commercial Real Estate is a Philadelphia commercial real estate brokerage firm that provides a full range of Philadelphia commercial real estate listings and services, marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Wolf Commercial Real Estate, a Philadelphia commercial real estate broker that specializes in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new office space in Philly with the Philadelphia commercial properties that best meets their needs.  As experts in Philadelphia commercial real estate listings and services, the team at our Philadelphia commercial real estate brokerage firm provides ongoing detailed information about Philadelphia commercial properties to our clients and prospects to help them achieve their real estate goals.  If you are looking for Philadelphia office space for sale or lease, Wolf Commercial Real Estate is the Philadelphia commercial real estate broker you need — a strategic partner who is fully invested in your long-term growth and success.

Please visit our websites for a full listing of South Jersey and Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.

Philadelphia Office Space Deliveries, Construction And Inventory

research-information-graphic-phlSeven new office buildings totaling 413,734 square feet were completed in the Philadelphia office space market in the second quarter of 2014, according to the latest market trend report from the CoStar Group.  As a comparison, first quarter 2014 deliveries to the Philly office space market amounted to 121,952 square feet in four buildings.

Another 2,116,720 square feet of office space in Philly was under construction at second quarter’s end, according to CoStar’s Second Quarter 2014 Market Report.

Notable deliveries of office space in Philadelphiathis year include:  Two City Center, a 296,025-square-foot facility that delivered in second quarter 2014 and is now 40% occupied, and 1401 Roosevelt Avenue, a 60,000-square-foot building that delivered in first quarter 2014 and is now completely occupied, CoStar said.

The two largest projects under construction in the Philly office space market at the end of the second quarter this year were FMC Tower / Walnut Street Tower, an 830,000-square-foot building with 68% of its space pre-leased and 3737 Market Street, a 340,000-square-foot building with 82% of its space pre-leased, the market report noted.

Total Philadelphia office space inventory at the end of the second quarter stood at 401,999,668 square feet in 20,835 buildings, CoStar said, adding that the Class-A office sector equaled 128,991,730 square feet of office space in Philly in 955 projects.  Owner-occupied buildings in the Philly office space market numbered 942, representing 35,997,940 square feet of office space in Philadelphia, according to the report.

In comparison to second quarter Philly office space trends, 217 new buildings were delivered to the U.S. national office market, adding 11.38 million square feet of completed construction, CoStar noted.  Another 101 million square feet of office space in the U.S. market remained under construction at second quarter’s end, the report said.  In the South Florida market , the 80,000-square-foot facility at 3905 NW 107th Avenue delivered to the market while 520 Newport Center Drive, a 354,845-square-foot building in the Orange County market remain under construction.  Total office inventory at the end of the second quarter 2014 consisted of nearly 10.42 billion square feet in more than 500,800 buildings, of which about 20,800 were owner-occupied buildings representing 905 million square feet, according to CoStar.

For more information about office space in Philadelphia or any Philadelphia commercial properties, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@wolfcre.com) or Leor Hemo (leor.hemo@wolfcre.com) at Wolf Commercial Real Estate, a premier Philadelphia commercial real estate brokerage firm that specializes in Philadelphia office space.

Wolf Commercial Real Estate is a Philadelphia commercial real estate broker that provides a full range of Philadelphia commercial real estate listings and services, marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Wolf Commercial Real Estate, a Philadelphia commercial real estate broker that specializes in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new office space in Philly with the Philadelphia commercial properties that best meets their needs.  As experts in Philadelphia commercial real estate listings and services, the team at our Philadelphia commercial real estate brokerage firm provides ongoing detailed information about Philadelphia commercial properties to our clients and prospects to help them achieve their real estate goals.  If you are looking for office space in Philadelphia for sale or lease, Wolf Commercial Real Estate is the Philadelphia commercial real estate broker you need — a strategic partner who is fully invested in your long-term growth and success.

Please visit our websites for a full listing of South Jersey and Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.

Philly Office Space Vacancy Rate Drops

research-information-graphic-phlThe Philly office space vacancy rate dropped in the second quarter 2014, closing the quarter with a vacancy rate of 10.9%  for the Philadelphia office space market, according to the CoStar Group’s newest market trend report.

Net absorption totaled positive 876,918 square feet of office space in Philly in the second quarter 2014.  In comparison, net absorption was negative 433,098 square feet of office space in Philadelphia in the first quarter 2014, CoStar’s First Quarter 2014 Market Report said.

Vacant sublease space in the Philly office space market decreased in the second quarter, ending the quarter  at 1,262,768 square feet, the report noted.

Costar said that among the tenants moving into large blocks of space in the Philadelphia office space market in 2014 were:  Incyte Corporation, moving into 191,056 square feet at 1801 Augustine Cut Off; The Harrisburg University of Science & Technology, moving into 149,820 square feet at Harrisburg University Academic Center; and Beneficial Mutual Bancorp, Inc., moving into 95,764 square feet at 1818 Beneficial Bank Place.

Rental rates in the market for Philadelphia office space increased over the previous quarter, the report said, ending the second quarter 2014 at $21.48.

A total of seven buildings delivered to the office space in Philly in the second quarter 2014, CoStar reported.  The seven buildings totaled 413,734 square feet of office space in Philadelphia.  An additional 2,116,720 square feet of office space in Philly remaining under construction at the end of the quarter, the report said.

In comparison to the quarterly results in the Philadelphia office space market, the U.S. National Office vacancy rate dropped to 11.4% from the previous quarter, CoStar noted, with net absorption at positive 24.53 million square feet in the second quarter. Nationally, average rental rates rose to $22.22, and 217 buildings delivered to the market totaling nearly 11.4 million square feet, according to the report.

For more information about office space in Philadelphia or any Philadelphia commercial properties, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@wolfcre.com) or Leor Hemo (leor.hemo@wolfcre.com) at Wolf Commercial Real Estate, a premier Philadelphia commercial real estate brokerage firm that specializes in Philly office space.

Wolf Commercial Real Estate is a Philadelphia commercial real estate broker that provides a full range of Philadelphia commercial real estate listings and services, marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Wolf Commercial Real Estate, a Philadelphia commercial real estate broker that specializes in Philadelphia commercial real estate listings and services, provides unparalleled expertise in matching companies and individuals seeking new Philadelphia office space with the Philadelphia commercial properties that best meets their needs.  As experts in Philadelphia commercial real estate listings and services, the team at our Philadelphia commercial real estate brokerage firm provides ongoing detailed information about Philadelphia commercial properties to our clients and prospects to help them achieve their real estate goals.  If you are looking for office space in Philadelphia for sale or lease, Wolf Commercial Real Estate is the Philadelphia commercial real estate broker you need — a strategic partner who is fully invested in your long-term growth and success.

Please visit our websites for a full listing of South Jersey and Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.

WCRE REPORT: NEW INVESTMENT, SMALL BUSINESS EXPANSION STRENGTHEN SOUTHERN NEW JERSEY COMMERCIAL REAL ESTATE MARKET

research-information-graphic-phlJuly 8, 2014 – Marlton, NJ – The Southern New Jersey office market seems to have shifted from recovery mode toward the first steps of real growth, according to the latest analysis by Wolf Commercial Real Estate (WCRE). The firm’s quarterly market report finds a mix of mostly positive trends during the second quarter, making for an overall bullish tone in the market for 2014. The CRE market was very busy during the quarter, bouncing back from the setbacks imposed by the harsh winter to reclaim another portion of vacancy and set up a healthy pipeline of deals that are expected to close later in the year.

There were approximately 310,493 square feet of new leases and renewals executed in Burlington, Camden, and Gloucester Counties during the second quarter, including several large spaces, ranging in size from 6,000 to 44,000 square feet. Notably, expansions and new deals remained strong this quarter, representing 52 percent of all transactions. Net absorption for the quarter was approximately 112,368 sf, and prospect activity was extremely active, with a pipeline of approximately 350,000 square feet of pending deals expected to close during the third quarter.

“Vacancy rates continue to fall, and conditions in our region have improved to the point where we expect to see them fall even further,” said Jason Wolf, founder and principal of WCRE. “We’re seeing lower unemployment, including gains in office jobs, and a general boost in small business confidence, which is fueling expansion.”

The report noted that for the second straight quarter, many of the subject properties were located in prime 3M locations within Burlington County, and that the tightening of those areas was causing demand to shift toward vacancies in Camden County.

Other office market highlights from the report:

  • Both Burlington County and Camden County saw significant decreases in vacancy this quarter, though Burlington continued to maintain a markedly lower vacancy rate than Camden, at 9.1 percent compared with Camden’s 18.1 percent.
  • Average rents for Class A & B product continue to show strong support in the range of $11.00-$14.00/sf NNN or $21.00-$24.00/sf gross, with an overall market average showing strong support in the $10.00-$12.00/sf NNN or $20.00-$22.00/sf gross for the deals completed during the first quarter. This is essentially unchanged from the previous quarter.
  • New lease activity for Q1 is in the range of approximately 161,316 square feet of new deals and/or expansions and approximately 149,177 square feet of renewals.
  • All of the major private owners and REITS showed a significant increase in prospect activity for the quarter, and all continue to remain cautiously optimistic for 2014.

WCRE also reported on the local retail market, where the news is quite bright for Center City Philadelphia, but less so for Southern New Jersey. Highlights from the retail section of the report include:

  • Several major retailers are moving into large Center City spaces, including Nordstrom Rack, Forever 21, and American Eagle Outfitters.
  • Southern New Jersey welcomed a new Whole Foods and saw a new outlet center break ground in Deptford, but there are some troubled centers amid those still experiencing growth.
  • Overall retail vacancy in the tri-county area is at 15.7%, up for the second straight quarter.
  • Class A retail product rental rates continue to show strong support in the range of $30.00-$40.00/sf NNN, which is essentially unchanged from the previous several quarters.
  • Class B product shows support in the range of $15.00-$25.00/sf NNN, which is also unchanged.

The full report is available upon request. 

About WCRE

WCRE is a full-service commercial real estate brokerage and advisory firm specializing in office, retail, medical, industrial and investment properties in Southern New Jersey and the Philadelphia region. We provide a complete range of real estate services to commercial property owners, companies, banks, commercial loan servicers, and investors seeking the highest quality of service, proven expertise, and a total commitment to client-focused relationships. Through our intensive focus on our clients’ business goals, our commitment to the community, and our highly personal approach to client service, WCRE is creating a new culture and a higher standard. We go well beyond helping with property transactions and serve as a strategic partner invested in your long term growth and success.

Learn more about WCRE online at www.wolfcre.com,on Twitter @WCRE1, and on Facebook at Wolf Commercial Real Estate, LLC. Visit our blog pages at www.southjerseyofficespace.com,www.southjerseyretailspace.com, and www.southjerseymedicalspace.com.

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Developers Acquire Center City East End Buildings In Philly Office Space Market

a Philly buildingThree Philadelphia commercial real estate investors have quietly purchased buildings in the Philly office space market in Center City’s east end, investing over $300 million in what they believe will be the next hot market in Philadelphia, according to the Philadelphia Business Journal.

Keystone Property Group and Mack-Cali Realty Corp., which acquired the Curtis Center this week, have together invested just over $210 million in two buildings in the Philadelphia office space market’s Independence Square submarket in under a year, the newspaper said.  Keystone and Mack-Cali have focused their interests on the Market Street East area of the Philly office space market, according to the Journal.  Another transaction involving office space in Philly in the CenterCity east end came with Keystone and Mack-Cali’s recent acquisition of the Dow building at 6th and Market street, just a short distance from the CurtisCenter.  The $20 million renovation of that building will include a beer garden slated to open soon.

Brickstone Realty Cos., owner of the Lits Building, also has been growing its portfolio of buildings in the same area, investing $105 million along the 1100 block of Chestnut Street in the Philadelphia office space market, the newspaper reported.  The company now owns 1112-1128 Chestnut Street and has a 192-square-foot redevelopment project underway that will feature 95,000 square feet of retail space and 112 apartments.

Brickstone also is looking at acquiring other mixed use and office space in Philadelphia and currently has three buildings on Chestnut Street or 11th Street under agreement, according to the Journal.  Plans call for that space to be converted into loft apartments, creative office space and co-working space, adding an unknown amount of square footage to existing office space in Philly.

Keystone and Mack-Cali, which paid $125 million for the historic Curtis Building, will invest another $25 million to transform the building into a mixed-used complex with 90,000 square feet of  office space in Philadelphia, as well as 90 upscale apartment units and a restaurant with outdoor dining, both overlooking Independence National Historic Park and Washington Square Park.  The company said more apartments might be added once existing office leases roll over and only a small portion of Philadelphia office space might be kept in the long term.

Other Philadelphia commercial real estate investors also are showing increased interest in CenterCity’s east end.  In March 2014, a partnership sponsored by Rubenstein Partners purchased the 850,000-square-foot Penn Mutual Towers for an undisclosed amount.  Penn Mutual Towers — actually three buildings that overlook Independence Mall and Washington Square — will be modernized to create high-quality Philadelphia office space.  The purchase was the company’s first investment in the Philly office space market in years, an apparent sign of their confidence in the Center City east end submarket.

For more information about office space in Philly or any Philadelphia commercial properties, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@wolfcre.com) or Leor Hemo (leor.hemo@wolfcre.com) at Wolf Commercial Real Estate, a premier Philadelphia commercial real estate brokerage firm that specializes in office space in Philadelphia.

Wolf Commercial Real Estate is a Philadelphia commercial real estate broker that provides a full range of Philadelphia commercial real estate listings and services, marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

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