It’s up, up, and away in the Philadelphia CBD with office rents on the rise and absorption turning positive.
The new year started quietly in Center City with leasing activity down but absorption trending upward into positive territory. (At the time of this post, clocking in at 46,594 SF.)
Notably, Q1 was marked by widespread rent growth including:
- Overall CBD rents up 2.8% over last quarter.
- Class A asking rates up 3.2% quarter-over-quarter and 3.4% year-over-year.
- University City asking rents up 10.8% year-over-year and continuing to grow.
- Regionally, asking rents growing to $26.43 FSG.
Additionally, several sales closed over the course of Q1, such as:
- American Real Estate Partners acquiring 1600 Market Street for $160 million in partnership with Chile-based Independencia.
- Thor Equities purchasing the office condominium of 901 Market Street for $41.8 million
- A local investor purchasing 1760 Market Street for $31.5 million.
- PMC Property Group acquiring a two-building portfolio at 23rd and Market Streets for $10 million, adjacent to its nearly complete 2400 Market project.
Adding 1650 Arch Street into the mix, which is currently up for sale, these parcels could accommodate a mix of future uses. To stay abreast of these outcomes and the state of the Philadelphia CBD visit JLL’s Philadelphia research page, your source for Philadelphia real estate trends and insights. Read the full Q1 CBD report here.