Philly Office Space Vacancies Rise in First Quarter

research-information-graphic-phlThe Philly office space vacancy rate rose in the first quarter 2015, closing the quarter at 10.8%, according to a new market report from the CoStar Group.

The vacancy rate for office space in Philadelphia in the first quarter was an increase over the previous quarter, the CoStar Group’s First Quarter 2015 Market Report noted.  Net absorption was negative 386,143 square feet of office space in Philly for the first quarter, compared to positive 378,460 square feet of Philadelphia office space in the fourth quarter, CoStar said.

Vacant sublease space in the market for office space in Philadelphia was up in the first quarter, closing at 1,306,325 square feet of Philly office space, CoStar added.

Among tenants moving into large blocks of office space in Philly in 2015 were:  Incyte Corporation, moving into 191,056 square feet of Philly office space at 1801 Augustine Cut Off; and National Penn Insurance Services, moving into 126,369 square feet of office space in Philadelphia at 645 West Hamilton Street, the report noted.

Philadelphia office space rental rates ended the quarter at $21.89, an increase over the fourth quarter, according to the report.

Seven buildings were delivered to the market for office space in Philly in the first quarter, CoStar reported.  That tally added 145,650 square feet of Philly office space to the market.  Another 2,602,750 square feet of office space in Philadelphia remained under construction at the end of the first quarter, CoStar said.

Comparatively, national office vacancies dropped to 10.9% in the first quarter, CoStar reported.  Net absorption was positive 15.4 million square feet for the quarter, the report noted.  Average rental rates increased to $22.74 and 244 office buildings delivered in the quarter, bringing more than 16.5 million square feet to the national market, according to CoStar.

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 premier Philadelphia commercial real estate broker that specializes in office space in Philly.

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 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 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.

First Quarter Report: Strong Start for South Jersey Commercial Real Estate

research-information-graphic-phlMaintaining the momentum it experienced in fourth quarter 2014, the South Jersey commercial real estate market started 2015 on a strong note, according to a new market report from Wolf Commercial Real Estate, a premier Philadelphia commercial real estate broker that specializes in South Jersey and Philly commercial real estate listings and services, including Philly office space and other Philadelphia commercial properties.

The latest quarterly analysis by the Philly commercial real estate brokerage firm found that some challenges remain in the marketplace, but that the Garden State’s overall office space market has been bolstered in the first quarter by major healthcare institutions, investors and large tenants.

“The moves we’ve seen this quarter signal significant business expansion and job growth,” said Jason Wolf, founder and managing principal of Wolf Commercial Real Estate, a leading  Philly commercial real estate brokerage firm. “This has helped to boost commercial real estate confidence and lending conditions, leading to a more optimistic atmosphere that is expected to continue throughout 2015.”

The report underscores significant moves announced and/or anticipated by key players in the South Jersey office market, including Virtua’s plan to relocate to a 62,000-square-foot office this fall and the sale of two Brandywine Realty Trust trophy assets to out-of-market investors — Libertyview and 1000 Atrium Way. The two buildings totaled 221,405 square feet, selling for an average of about $134/sf.

The first quarter saw a 7% increase in new leases and renewals, according to the report issued by Wolf Commercial Real Estate, a Philadelphia commercial real estate brokerage firm with expertise in South Jersey and Philadelphia commercial real estate listings and services, including Philadelphia office space and other Philly commercial properties.  Executed transactions rose from 441,141 square feet in the first quarter a year ago to approximately 472,154 square feet in this first quarter 2015, the firm said.

New tenant leases amounted to approximately 186,427 square feet, while renewals and expansions stood at approximately 285,727 square feet in the state’s southern office market, the Philly commercial real estate broker said.  New leasing activity represented approximately 39.5% of deals in the first quarter. Overall, gross absorption for first quarter was in the range of approximately 255,161 square feet. Beyond the closed transactions, a pipeline of approximately 450,000 square feet of noteworthy South Jersey lease deals stood ready to close in the near future.

Other office market highlights in the analysis from Wolf Commercial Real Estate, a Philadelphia commercial real estate brokerage firm that specializes in South Jersey and Philly commercial real estate listings and services, including Philly office space and other Philadelphia commercial properties:

  • GROW NJ continues to draw businesses to the state, the Philly commercial real estate broker said.  In the first two months of 2015 alone, 10 projects were approved for $84.6 million in funding.
  • Overall vacancies in the South Jersey commercial real estate market continued to decrease, and are now down to approximately 13.6 percent, an improvement over the fourth quarter 2014.
  • Average rents for Class A & B product in the office market continue to show strong support in the range of $10.00-$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. Rents remained stable.
  • All major private owners and REITS showed moderate leasing and prospect activity for the quarter.  As vacancies tightened in Burlington County, many larger vacancy opportunities are also shifting toward Camden County, which is not controlled by these ownership entities.

The retail section of the report from the Philadelphia commercial real estate broker that specializes in South Jersey and Philadelphia commercial real estate listings observed that consumer confidence had reached its highest monthly level since the start of the recession and was likely to strengthen more as the year goes on.  Highlights from the retail section include:

  • Overall retail vacancy in South Jersey’s tri-county area was lingering at about 10.5%, a slight increase from the previous quarter, but still encouraging in comparison to recent years.
  • Class A retail product rental rates maintained strong support in the range of $30.00-$40.00/sf NNN, as rents remained steady.
  • National chains experiencing growth were responsible for much of the demand for local space, while smaller retailers and local based retailers continued to struggle.

The full report is available upon request from Wolf Commercial Real Estate, a Philly commercial real estate brokerage firm with expertise in South Jersey and Philly commercial real estate listings and services, including Philadelphia office space and other Philadelphia commercial properties.

For more information about Philly office space or any Philly commercial properties, please contact Jason Wolf (856-857-6301; jason.wolf@wolfcre.com), Leor Hemo (856-857-6302; leor.hemo@wolfcre.com), Christina Del Duca (856-857-6304; christina.delduca@wolfcre.com), Todd Levin (856-857-6319; todd.levin@wolfcre.com), Scott Seligman (856-857-6305; scott.seligman@wolfcre.com) or Christopher Henderson (856-857-6337; chris.henderson@wolfcre.com at Wolf Commercial Real Estate, a Philadelphia commercial real estate broker.

Wolf Commercial Real Estate is a premier Philly commercial real estate broker that provides a full range of South Jersey and Philadelphia commercial real estate listings and services that include Philadelphia office space and other Philadelphia commercial properties.  Wolf Commercial Real Estate markets commercial offices, medical properties, industrial properties, land properties, retail buildings and other South Jersey and Philly commercial properties for buyers, tenants, investors and sellers.  Please visit our websites for a full listing of Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.

Largest Philadelphia Office Space Leases Signed in Q4 2014

research-information-graphic-phlThe largest lease for Philadelphia office space signed in the fourth quarter 2014 was for Subaru of America’s new corporate headquarters in the Philadelphia market, according to a new report from the CoStar Group.

Subaru signed the lease for 250,000 square feet of Philly office space in the Gateway Office Campus – Building 4 in the North Camden County submarket, according to CoStar’s Fourth Quarter 2014 Market Report.

The fourth quarter’s second largest lease in the market for office space in Philadelphia was for 62,880 square feet at Two Logan Square in the Market Street West submarket, CoStar said.

The report also recognized Thomas Jefferson University Hospital’s fourth quarter lease for 43,369 square feet at 833 Chestnut East in the Market Street East submarket of the market for  office space in Philly.

Other significant leases signed in 2014 included Comcast Corporation’s second quarter lease for 982,275 square feet at Comcast Innovation & Technology Center in the Philly office space market’s Market Street West submarket.

In comparison to the lease signings for office space in Philly, CoStar said the top new leases signed in the national market in fourth quarter 2014 included Google Inc.’s 1.89 million-square-foot lease in the South Bay / San Jose market; Amazon’s 422,682-square-foot lease in New York City; ServiceNow, Inc.’s lease for 310,346 square feet in the South Bay / San Jose market; MITRE’s lease for 270,000 square feet in the Washington market; and Subaru of America’s lease for 250,000 square feet in the Philadelphia office space market.

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), Leor Hemo (leor.hemo@wolfcre.com) or Lee Fein (lee.fein@wolfcre.com) at Wolf Commercial Real Estate, a premier Philadelphia commercial real estate brokerage firm with expertise 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 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 office space in Philadelphia and other 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.

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) 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) 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) 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.