Philadelphia office market reports
Q2 2021: Reopening efforts, higher vaccination rates, and additional market dynamics show a promising future for the Philadelphia office market.
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With Philadelphia-based companies beginning their workplace reopening efforts, higher vaccination rates across the regional population, and additional supporting market dynamics; the future looks bright for the Philadelphia office market. Anchored by an almost 10% drop in the regional unemployment (15.0% in April 2020 to 6.4% in April 2021), Philadelphia is well on the way to an above-national-average recovery.
Reopening efforts and higher vaccination rates have allowed the Philadelphia MSA unemployment rate to rebound from a high of 15.0% in April 2020 to 6.4% in April 2021.
The Philadelphia office recovery index of 18.9% aligns with the U.S. gateway city average of 19.2%. Foot traffic is expected to increase as more companies return to the office in the coming months.
The total vacancy rate of 13.6% has approached, but has not surpassed, the record rate reported during the dot-com recession within Philadelphia MSA office buildings, across all classes.
Sublease supply continues to drag overall market fundamentals, accounting for 2.6 msf of vacant space within the Philadelphia MSA throughout all classes in office buildings. Some of this space could be withdrawn from the market should return-to-office plans necessitate the recapture of this space.
Post-COVID leasing activity within office buildings has paused, decreasing by an annualized rate of 57.4% compared with the prior 20-year average within the Philadelphia MSA across all asset classes.
Just $2.4 billion of Philadelphia MSA offices, across all classes have been sold since 2020.
Your source for the latest Philadelphia office market reports
Get in-depth office market reports and insights from commercial real estate experts in the Greater Philadelphia area. Avison Young advisors look at Philadelphia commercial real estate activities and the latest Philadelphia statistics to provide you expert market research on Philadelphia's office properties.
Explore different topics like the latest office market pricing trends and analysis of Philadelphia's current office real estate market conditions. Gain a better understanding of Philadelphia’s office real estate outlook and stay ahead of current office space trends. Make smart decisions when it comes to investing in office properties in Philadelphia's competitive office real estate market. Avison Young is your trusted source for commercial real estate office market insights in Philadelphia.
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