PHILADELPHIA, PA—Businesses looking for office space in the nation's hottest tech markets should expect to pay a premium – and a hefty one in many of the top tech cities, according to a new CBRE research report. Among them is Philadelphia's University City, which at 45 percent had the fourth-highest rent premiums in North America
The report, which analyzes the top 30 tech cities across the U.S. and Canada, showed an aggregate rent premium of 11 percent across all 30 markets—a number that jumps significantly higher in the hottest tech submarkets.
Vast differences in asking rates are emerging in Philadelphia, both downtown and in the suburbs, as tech tenant preferences and clustering drive demand in a few select submarkets, including the CBD and University City. Average office asking rent grew 3 percent from Q2 2013 to Q2 2015; yet in University City, rent grew 20.4 percent over the same time period, the eighth-most among top tech submarkets included in the study.
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Steve Lubetkin
Steve Lubetkin is the New Jersey and Philadelphia editor for GlobeSt.com. He is currently filling in covering Chicago and Midwest markets until a new permanent editor is named. He previously filled in covering Atlanta. Steve’s journalism background includes print and broadcast reporting for NJ news organizations. His audio and video work for GlobeSt.com has been honored by the Garden State Journalists Association, and he has also been recognized for video by the New Jersey Chapter of the Society of Professional Journalists. He has produced audio podcasts on CRE topics for the NAR Commercial Division and the CCIM Institute. Steve has also served (from August 2017 to March 2018) as national broadcast news correspondent for CEOReport.com, a news website focused on practical advice for senior executives in small- and medium-sized companies. Steve also reports on-camera and covers conferences for NJSpotlight.com, a public policy news coverage website focused on New Jersey government and industry; and for clients of StateBroadcastNews.com, a division of The Lubetkin Media Companies LLC. Steve has been the computer columnist for the Jewish Community Voice of Southern New Jersey, since 1996. Steve is co-author, with Toronto-based podcasting pioneer Donna Papacosta, of the book, The Business of Podcasting: How to Take Your Podcasting Passion from the Personal to the Professional. You can email Steve at [email protected].
