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Report: Philadelphia Office Leasing Momentum Strengthens
Savills’ Q3 office market report for Philadelphia reveals year-to-date leasing activity totaled 3.3 million square feet in the metropolitan region, 16.1% higher than this time last year.
A combination of fewer tenants subletting and the expiration of existing sublease space reduced the regional sublease availability rate by 40 basis points year over year to 4.3%. Yearly rent gains were reported across all class types, with Philadelphia’s overall average asking rent rising 1.1% year over year to $32.41 per square foot.
The report also highlighted increases across all property classes despite stronger leasing activity in the Class A sector. Transactions in the Philadelphia Central Business District accounted for 39.3% of the regional total. While half of the quarter’s top 10 transactions involved tenants choosing to stay in
place, renewals and restructures represented only 29.0% of quarterly volume.
