Search
 

Center City Office Rates Drop, TIs Rise

PHILADELPHIA-Asking rental rates in class-A office space in Center City dropped $0.41 per sf in the opening months of this year, taking them below $22 per sf, according to first-quarter data from Studley. Tenant improvement dollars proliferate.

By Marita Thomas | Updated on June 25, 2002

PHILADELPHIA-With the introduction of vacated telecommunications space at1500 Spring Garden and “several substantial sublease spaces,” availability rates in Philadelphia’s central business district were up 21% in the first quarter of 2002, compared with the final quarter of 2001, according to a market report from the Philadelphia office of New York-based Julien J. Studley. That brings overall availability in the city’s Market West CBD to 16.7%.

As a consequence, “extra inventory had leasing agents scrambling to lure the few large tenants shopping for space,” according to the latest Studley report. The average asking rents in class-A buildings west of Broad Street, such as Four Penn Center, Three Parkway and United Plaza dropped $0.41 per sf since the previous quarter, taking them to under $22 per sf.

“Rents were driven down further during lease negotiations and were often accompanied by an increase in free rent packages and tenant improvement dollars,” the report states.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.