Philadelphia Office Assets Remain in Demand

PHILADELPHIA, PA — The Philadelphia office market will remain fairly well-balanced through the end of the year, allowing for modest rent gains, according to a second-quarter Office Research Report by Marcus & Millichap, the nation’s largest real estate investment services firm.

(The 57-story, 975-foot tall, 1.23-million-sf Comcast Center, Downtown Philadelphia, top right photo).

Despite ongoing uncertainty at the national level, the metro’s diverse economy and prominent educational and health services sector, which accounted for 63 percent of all jobs created during the past year, have helped to maintain the local office market’s stability.

“Buyers will remain focused on established properties near arterial roadways in submarkets with strong residential and retail bases, such as King of Prussia and Exton/Malvern,” says Spencer Yablon, (top left photo) regional manager of the Philadelphia office of Marcus & Millichap.

(The 53-story, 739-foot-tall, 1.3-million-sf Bell Atlantic Tower, bottom right. The 61-story, 945-foot-tall One Liberty Place, middle left))

Following are some of the most significant aspects of the Philadelphia Office Research Report:

· Office-using employment is forecast to tick up 0.1 percent with the addition of 700 jobs.
· Developers are expected to add 1.7 million square feet of competitive office space by year end.
· Vacancy is forecast to end the year at 12.2 percent.
· Asking rents are projected to push up 4.2 percent to $24.14 per square foot.
· Effective rents will gain 2.4 percent to $20.32 per square foot.

For a copy of the complete Philadelphia Office Research Report, as well as reports on other markets nationwide, visit our website at http://www.marcusmillichap.com/.

Press Contact: Stacey Corso
Communications Department
(925) 953-1716