{"id":1004763904,"date":"2025-07-17T06:34:21","date_gmt":"2025-07-17T14:34:21","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004763904"},"modified":"2025-07-18T06:21:52","modified_gmt":"2025-07-18T14:21:52","slug":"philadelphia-office-sector-still-sluggish","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/philadelphia-office-sector-still-sluggish\/","title":{"rendered":"Philadelphia Office Sector Still Sluggish"},"content":{"rendered":"\n<p>Philadelphia\u2019s office sector remained sluggish in the first five months of the year, according to Yardi Research Data. The metro\u2019s investment volume year-to-date as of May reached $154 million, with assets trading for $100 per square foot on average. That price was almost half the national average.<\/p>\n\n\n\n<p>The market\u2019s development pipeline remained muted, with 1.2 million square feet underway\u2014representing 0.7 percent of its total inventory. However, the metro occupied the 10th place nationally.<\/p>\n\n\n\n<iframe title=\"Top Markets for Office Development\" aria-label=\"Table\" id=\"datawrapper-chart-NLgZb\" src=\"https:\/\/datawrapper.dwcdn.net\/NLgZb\/1\/\" scrolling=\"no\" frameborder=\"0\" style=\"width: 0; min-width: 100% !important; border: none;\" height=\"542\" data-external=\"1\"><\/iframe><script type=\"text\/javascript\">!function(){\"use strict\";window.addEventListener(\"message\",function(a){if(void 0!==a.data[\"datawrapper-height\"]){var e=document.querySelectorAll(\"iframe\");for(var t in a.data[\"datawrapper-height\"])for(var r,i=0;r=e[i];i++)if(r.contentWindow===a.source){var d=a.data[\"datawrapper-height\"][t]+\"px\";r.style.height=d}}})}();\n<\/script>\n\n\n\n<p>In terms of listing rates, Philadelphia&#8217;s figures witnessed a minor drop over the year. However, the vacancy rate rose almost 4 percent year-over-year.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-philly-development-pipeline-outperforms-some-peers\">Philly development pipeline outperforms some peers<\/h2>\n\n\n\n<p>Philadelphia\u2019s office development pipeline clocked in at 1.2 million square feet as of May, accounting for 0.7 percent of the metro\u2019s total inventory. Among peer markets, Dallas (3.2 million square feet) and Austin (2.7 million square feet) fared better, while the Bay Area (959,083 square feet) and Phoenix (623,905 square feet) were at the opposite pole.<\/p>\n\n\n\n<p>When adding planned and prospective projects, Philadelphia&#8217;s pipeline reached 2.1 percent of stock, slightly below the 2.4 percent national figure. Austin (7.1 percent) led the U.S. rankings, followed by Boston (6.4 percent) and Miami (6.3 percent).<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure data-wp-context=\"{&quot;imageId&quot;:&quot;6a1a3bfe7aa5e&quot;}\" data-wp-interactive=\"core\/image\" class=\"alignright size-full is-resized wp-lightbox-container\"><img loading=\"lazy\" decoding=\"async\" width=\"800\" height=\"620\" data-attachment-id=\"1004756266\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/merck-breaks-ground-on-1b-biotech-center\/merck-wilmington-biotech-center\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/04\/Merck-Wilmington-Biotech-center.jpg\" data-orig-size=\"800,620\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"Merck-Wilmington-Biotech-center\" data-image-description=\"\" data-image-caption=\"&lt;p&gt;Merck Wilmington Biotech is being developed at the 164-acre Chestnut Run Innovation &#038; Science Park. Image courtesy of Merck&lt;\/p&gt;\n\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/04\/Merck-Wilmington-Biotech-center.jpg?w=800\" data-wp-class--hide=\"state.isContentHidden\" data-wp-class--show=\"state.isContentVisible\" data-wp-init=\"callbacks.setButtonStyles\" data-wp-on-async--click=\"actions.showLightbox\" data-wp-on-async--load=\"callbacks.setButtonStyles\" data-wp-on-async-window--resize=\"callbacks.setButtonStyles\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/04\/Merck-Wilmington-Biotech-center.jpg\" alt=\"Rendering of Merck Wilmington Biotech in Wilmington, Del.\" class=\"wp-image-1004756266\" style=\"width:400px\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/04\/Merck-Wilmington-Biotech-center.jpg 800w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/04\/Merck-Wilmington-Biotech-center.jpg?resize=300,233 300w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/04\/Merck-Wilmington-Biotech-center.jpg?resize=768,595 768w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" \/><button\n\t\t\tclass=\"lightbox-trigger\"\n\t\t\ttype=\"button\"\n\t\t\taria-haspopup=\"dialog\"\n\t\t\taria-label=\"Enlarge\"\n\t\t\tdata-wp-init=\"callbacks.initTriggerButton\"\n\t\t\tdata-wp-on-async--click=\"actions.showLightbox\"\n\t\t\tdata-wp-style--right=\"state.imageButtonRight\"\n\t\t\tdata-wp-style--top=\"state.imageButtonTop\"\n\t\t>\n\t\t\t<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"12\" height=\"12\" fill=\"none\" viewBox=\"0 0 12 12\">\n\t\t\t\t<path fill=\"#fff\" d=\"M2 0a2 2 0 0 0-2 2v2h1.5V2a.5.5 0 0 1 .5-.5h2V0H2Zm2 10.5H2a.5.5 0 0 1-.5-.5V8H0v2a2 2 0 0 0 2 2h2v-1.5ZM8 12v-1.5h2a.5.5 0 0 0 .5-.5V8H12v2a2 2 0 0 1-2 2H8Zm2-12a2 2 0 0 1 2 2v2h-1.5V2a.5.5 0 0 0-.5-.5H8V0h2Z\" \/>\n\t\t\t<\/svg>\n\t\t<\/button><figcaption class=\"wp-element-caption\">Merck Wilmington Biotech is rising as part of the 164-acre Chestnut Run Innovation &amp; Science Park. <em>Image courtesy of Merck<\/em><\/figcaption><\/figure><\/div>\n\n\n<p>In April, <a href=\"https:\/\/www.commercialsearch.com\/news\/merck-breaks-ground-on-1b-biotech-center\/\">Merck broke ground<\/a> on a $1 billion, 470,000-square-foot biologics center with lab, manufacturing and warehouse spaces in Wilmington, Del. The laboratory component is expected to be fully operational by 2028.<\/p>\n\n\n\n<p>In terms of <a href=\"https:\/\/www.commercialsearch.com\/news\/top-markets-for-office-deliveries\/\">office completions<\/a>, only four properties totaling 476,443 square feet came online year-to-date as of May, representing 0.2 percent of Philadelphia\u2019s inventory. The metro fared better than most peer markets and was second after San Diego, where deliveries totaled 856,484 square feet. San Francisco ranked first nationally for the most space completed (1.7 million square feet).<\/p>\n\n\n\n<p>One of the developments that came online this year is Breakthrough Properties\u2019 2300 Market, a 225,000-square-foot building in Philadelphia&#8217;s Center City. The eight-story property is LEED Gold-certified.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-office-to-residential-conversions-at-play\">Office-to-residential conversions at play<\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure data-wp-context=\"{&quot;imageId&quot;:&quot;6a1a3bfe7b8d5&quot;}\" data-wp-interactive=\"core\/image\" class=\"alignleft size-full is-resized wp-lightbox-container\"><img loading=\"lazy\" decoding=\"async\" width=\"410\" height=\"512\" data-attachment-id=\"1004763943\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/philadelphia-office-sector-still-sluggish\/1701-market-street-2\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/07\/1701-Market-Street-1.jpg\" data-orig-size=\"410,512\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;\\u00a9 Yardi Systems, Inc.&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"1701 Market Street\" data-image-description=\"&lt;p&gt;Exterior shot of 1701 Market St., an office building in Philadelphia.&lt;\/p&gt;\n\" data-image-caption=\"&lt;p&gt;The 304,037-square-foot office building at 1701 Market St. was converted into 299 rental units. Image courtesy of Yardi research data&lt;\/p&gt;\n\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/07\/1701-Market-Street-1.jpg?w=410\" data-wp-class--hide=\"state.isContentHidden\" data-wp-class--show=\"state.isContentVisible\" data-wp-init=\"callbacks.setButtonStyles\" data-wp-on-async--click=\"actions.showLightbox\" data-wp-on-async--load=\"callbacks.setButtonStyles\" data-wp-on-async-window--resize=\"callbacks.setButtonStyles\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/07\/1701-Market-Street-1.jpg\" alt=\"Exterior shot of 1701 Market St., an office building in Philadelphia.\" class=\"wp-image-1004763943\" style=\"width:350px\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/07\/1701-Market-Street-1.jpg 410w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/07\/1701-Market-Street-1.jpg?resize=240,300 240w\" sizes=\"auto, (max-width: 410px) 100vw, 410px\" \/><button\n\t\t\tclass=\"lightbox-trigger\"\n\t\t\ttype=\"button\"\n\t\t\taria-haspopup=\"dialog\"\n\t\t\taria-label=\"Enlarge\"\n\t\t\tdata-wp-init=\"callbacks.initTriggerButton\"\n\t\t\tdata-wp-on-async--click=\"actions.showLightbox\"\n\t\t\tdata-wp-style--right=\"state.imageButtonRight\"\n\t\t\tdata-wp-style--top=\"state.imageButtonTop\"\n\t\t>\n\t\t\t<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"12\" height=\"12\" fill=\"none\" viewBox=\"0 0 12 12\">\n\t\t\t\t<path fill=\"#fff\" d=\"M2 0a2 2 0 0 0-2 2v2h1.5V2a.5.5 0 0 1 .5-.5h2V0H2Zm2 10.5H2a.5.5 0 0 1-.5-.5V8H0v2a2 2 0 0 0 2 2h2v-1.5ZM8 12v-1.5h2a.5.5 0 0 0 .5-.5V8H12v2a2 2 0 0 1-2 2H8Zm2-12a2 2 0 0 1 2 2v2h-1.5V2a.5.5 0 0 0-.5-.5H8V0h2Z\" \/>\n\t\t\t<\/svg>\n\t\t<\/button><figcaption class=\"wp-element-caption\">The office building at 1701 Market St. was converted into a residential tower. <em>Image courtesy of Yardi Research Data<\/em><\/figcaption><\/figure><\/div>\n\n\n<p>Due to the growing interest in office-to-residential conversions, Yardi developed the Conversion Feasibility Index, a tool designed to measure a building\u2019s potential to be redeveloped into multifamily. The index&#8217;s values are split across three tiers, Tier I signaling buildings that are perfect candidates for conversion.<\/p>\n\n\n\n<p>Metro Philadelphia had 116 office buildings in the Tier I category as of May. Another 289 properties, totaling more than 37.8 million square feet, were in Tier II.<\/p>\n\n\n\n<p>At the beginning of May, the 18-story building at 1701 Market St. welcomed its first residents. The community is the result of the adaptive reuse of a 304,037-square-foot office property that had a CFI score of 95. The high-rise now comprises 299 rental units.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-sales-activity-below-most-large-metros\">Sales activity below most large metros<\/h2>\n\n\n\n<p>Philadelphia\u2019s <a href=\"https:\/\/www.commercialsearch.com\/news\/top-markets-for-office-transactions\/\">office sales volume<\/a> year-to-date as of May totaled $154 million. The metro lagged most major U.S. markets, except for Portland ($87 million), Detroit ($59 million), Nashville ($45 million) and the Inland Empire ($18 million).<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure data-wp-context=\"{&quot;imageId&quot;:&quot;6a1a3bfe7c638&quot;}\" data-wp-interactive=\"core\/image\" class=\"alignright size-full is-resized wp-lightbox-container\"><img loading=\"lazy\" decoding=\"async\" width=\"547\" height=\"410\" data-attachment-id=\"1004754596\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/onicx-group-acquires-72-ksf-medical-office-facility\/the-merion-building\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/04\/The-Merion-Building.jpg\" data-orig-size=\"547,410\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"The Merion Building\" data-image-description=\"&lt;p&gt;Exterior shot of The Merion Building, a medical office building in King of Prussia, Penn.&lt;\/p&gt;\n\" data-image-caption=\"&lt;p&gt;The Merion Building was converted into a medical office building in 2000. Image courtesy of Onicx Group&lt;\/p&gt;\n\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/04\/The-Merion-Building.jpg?w=547\" data-wp-class--hide=\"state.isContentHidden\" data-wp-class--show=\"state.isContentVisible\" data-wp-init=\"callbacks.setButtonStyles\" data-wp-on-async--click=\"actions.showLightbox\" data-wp-on-async--load=\"callbacks.setButtonStyles\" data-wp-on-async-window--resize=\"callbacks.setButtonStyles\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/04\/The-Merion-Building.jpg\" alt=\"Exterior shot of The Merion Building, a medical office building in King of Prussia, Penn.\" class=\"wp-image-1004754596\" style=\"width:400px\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/04\/The-Merion-Building.jpg 547w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/04\/The-Merion-Building.jpg?resize=300,225 300w\" sizes=\"auto, (max-width: 547px) 100vw, 547px\" \/><button\n\t\t\tclass=\"lightbox-trigger\"\n\t\t\ttype=\"button\"\n\t\t\taria-haspopup=\"dialog\"\n\t\t\taria-label=\"Enlarge\"\n\t\t\tdata-wp-init=\"callbacks.initTriggerButton\"\n\t\t\tdata-wp-on-async--click=\"actions.showLightbox\"\n\t\t\tdata-wp-style--right=\"state.imageButtonRight\"\n\t\t\tdata-wp-style--top=\"state.imageButtonTop\"\n\t\t>\n\t\t\t<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"12\" height=\"12\" fill=\"none\" viewBox=\"0 0 12 12\">\n\t\t\t\t<path fill=\"#fff\" d=\"M2 0a2 2 0 0 0-2 2v2h1.5V2a.5.5 0 0 1 .5-.5h2V0H2Zm2 10.5H2a.5.5 0 0 1-.5-.5V8H0v2a2 2 0 0 0 2 2h2v-1.5ZM8 12v-1.5h2a.5.5 0 0 0 .5-.5V8H12v2a2 2 0 0 1-2 2H8Zm2-12a2 2 0 0 1 2 2v2h-1.5V2a.5.5 0 0 0-.5-.5H8V0h2Z\" \/>\n\t\t\t<\/svg>\n\t\t<\/button><figcaption class=\"wp-element-caption\">The Merion Building was converted into a medical office facility in 2000. <em>Image courtesy of Onicx Group<\/em><\/figcaption><\/figure><\/div>\n\n\n<p>Assets in the metro changed hands for $100 per square foot on average, almost half the $194 national average. Among similar markets, the Bay Area ($356 per square foot), Austin ($221 per square foot) and Dallas ($137 per square foot) had higher sale prices, while Denver ($96 per square foot) fared worse.<\/p>\n\n\n\n<p>One of the properties that traded in the first five months of the year was <a href=\"https:\/\/www.commercialsearch.com\/news\/onicx-group-acquires-72-ksf-medical-office-facility\/\">The Merion Building<\/a>, a 71,800-square-foot medical outpatient facility in King of Prussia, Penn. Onicx Group acquired the asset\u2014that once served as a high school\u2014from Peakstone Realty Trust.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-office-vacancy-rate-continues-to-rise\">Office vacancy rate continues to rise<\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure data-wp-context=\"{&quot;imageId&quot;:&quot;6a1a3bfe7d2d0&quot;}\" data-wp-interactive=\"core\/image\" class=\"alignleft size-full is-resized wp-lightbox-container\"><img loading=\"lazy\" decoding=\"async\" width=\"409\" height=\"512\" data-attachment-id=\"1004763944\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/philadelphia-office-sector-still-sluggish\/3025-jfk-blvd-2\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/07\/3025-JFK-Blvd.jpg\" data-orig-size=\"409,512\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"3025 JFK Blvd.\" data-image-description=\"&lt;p&gt;3025 JFK Blvd., a mixed-use tower within the Schuylkill Yards master-planned development in Philadelphia&lt;\/p&gt;\n\" data-image-caption=\"&lt;p&gt;FS Investments is relocating its global headquarters to 3025 JFK Blvd., a mixed-use tower within the Schuylkill Yards master-planned development. Image courtesy of Yardi research data&lt;\/p&gt;\n\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/07\/3025-JFK-Blvd.jpg?w=409\" data-wp-class--hide=\"state.isContentHidden\" data-wp-class--show=\"state.isContentVisible\" data-wp-init=\"callbacks.setButtonStyles\" data-wp-on-async--click=\"actions.showLightbox\" data-wp-on-async--load=\"callbacks.setButtonStyles\" data-wp-on-async-window--resize=\"callbacks.setButtonStyles\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/07\/3025-JFK-Blvd.jpg\" alt=\"3025 JFK Blvd., a mixed-use tower within the Schuylkill Yards master-planned development in Philadelphia\" class=\"wp-image-1004763944\" style=\"width:400px\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/07\/3025-JFK-Blvd.jpg 409w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/07\/3025-JFK-Blvd.jpg?resize=240,300 240w\" sizes=\"auto, (max-width: 409px) 100vw, 409px\" \/><button\n\t\t\tclass=\"lightbox-trigger\"\n\t\t\ttype=\"button\"\n\t\t\taria-haspopup=\"dialog\"\n\t\t\taria-label=\"Enlarge\"\n\t\t\tdata-wp-init=\"callbacks.initTriggerButton\"\n\t\t\tdata-wp-on-async--click=\"actions.showLightbox\"\n\t\t\tdata-wp-style--right=\"state.imageButtonRight\"\n\t\t\tdata-wp-style--top=\"state.imageButtonTop\"\n\t\t>\n\t\t\t<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"12\" height=\"12\" fill=\"none\" viewBox=\"0 0 12 12\">\n\t\t\t\t<path fill=\"#fff\" d=\"M2 0a2 2 0 0 0-2 2v2h1.5V2a.5.5 0 0 1 .5-.5h2V0H2Zm2 10.5H2a.5.5 0 0 1-.5-.5V8H0v2a2 2 0 0 0 2 2h2v-1.5ZM8 12v-1.5h2a.5.5 0 0 0 .5-.5V8H12v2a2 2 0 0 1-2 2H8Zm2-12a2 2 0 0 1 2 2v2h-1.5V2a.5.5 0 0 0-.5-.5H8V0h2Z\" \/>\n\t\t\t<\/svg>\n\t\t<\/button><figcaption class=\"wp-element-caption\">FS Investments is relocating its global headquarters to 3025 JFK Blvd., a mixed-use tower within the Schuylkill Yards master-planned development. <em>Image courtesy of Yardi Research Data<\/em><\/figcaption><\/figure><\/div>\n\n\n<p>Philadelphia\u2019s office vacancy rate reached 19.2 percent at the end of May, 20 basis points below the national average but 3.8 percent higher year-over-year. Peer markets such as Dallas (23.5 percent) and Austin (26.7 percent) had more vacant space, while Charlotte, N.C. (17.6 percent) and Phoenix (17.4 percent) fared better.<\/p>\n\n\n\n<p>The market\u2019s average listing rate at the end of the same month was $31.2, down 20 basis points from the figure registered a year ago and slightly below the $33.2 national value. Among similar markets, the Bay Area ($52.9), San Diego ($45.2) and Austin ($46.1) performed better.<\/p>\n\n\n\n<p>At the beginning of the year, <a href=\"https:\/\/www.commercialsearch.com\/news\/brandywine-realty-secures-major-lease-in-philadelphia\/\">FS Investment signed a 16-year lease<\/a> for 117,000 square feet at 3025 JFK Blvd.,\u00a0Brandywine Realty Trust\u2019s mixed-use tower. The company plans to relocate its global headquarters to the building starting next year.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-coworking-sector-remains-steady\">Coworking sector remains steady<\/h2>\n\n\n\n<p>Philadelphia had almost 3 million square feet of coworking space across 159 locations, according to CommercialCafe. The figure accounted for 1.5 percent of the market\u2019s total inventory, 50 basis points below the U.S. average. Manhattan (11.4 million square feet) ranked first nationally.<\/p>\n\n\n\n<p>Compared to its peers, Philadelphia had one of the lowest shares of coworking space, having surpassed only the Bay Area (1.4 percent). Nashville led among similar markets (3.3 percent), followed by San Diego (2.4 percent) and Denver (2.2 percent). <\/p>\n\n\n\n<p>Regus had the most shared space in Philadelphia, almost 530,000 square feet of space across 28 locations. Other companies with large footprints in the metro included WeWork (132,388 square feet) and HQ (132,149 square feet).<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The market\u2019s investment volume was among the lowest nationally, according to Yardi Research Data.<\/p>\n","protected":false},"author":3355,"featured_media":1004756266,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21825,22251,21783,52420,11,21742,21747,1494],"tags":[51047],"class_list":["post-1004763904","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","category-in-focus","category-investment","category-market-updates","category-midatlantic","category-latest","category-office","category-philadelphia","tag-marketupdate"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.4 (Yoast SEO v24.6) - 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