Tuesday, October 21, 2014
Inquirer Daily News

Real estate: Drug, bank revival in the burbs

Newmark Grubb Knight Frank picks apart the Philly-area office market

Real estate: Drug, bank revival in the burbs

Newmark Grubb Knight Frank's year-end Philadelphia Area Trends report -- higlights from Joseph Gibson, research manager:

- Center City: "Trophy assets continue to enjoy rent appreciation," rebouding to $37.05 "Full Service Gross," from the recent low of $33.01 in 2010. "Vacancy rates... below the 5% mark" for the high-end Liberty Place-Verizon-Mellon-Comcast skyscraper district. The GlaxoSmithKline consolidation punched a hole in the market; otherwise demand was "flat to somewhat higher."

- Suburban Pa.: "2012 marked the first year since before the last recession that the pharmaceutical sector added to occupancy." Shire's Atwater deal adds 200,000 sq ft+. Overall rents face 'only modest gains at best" in the Turnpike and 202 corridors, with better news in high-end Radnor and Conshohocken.

- South Jersey: Mortgage lending and other financial services, which shut down and moved out after the 2008 crash, reversed and expanded modestly (regaining 10% of past losses). Defense cuts could still hurt Mount Laurel/Moorestown.

- Wilmington: "Capital One's move into (the former Wilmington Trust) building at 1100 N. Market punctuated a year of healthy demand growth" after years of bank mergers and shutdowns. "Expect upward pressure on rents by late 2013." 

Joseph N. DiStefano
About this blog

PhillyDeals posts raw drafts and updates of Joseph N. DiStefano's columns and stories about Philly-area finance, investment, commercial real estate, tech, hiring and public spending, which he's been writing since 1989, mostly for the Philadelphia Inquirer.

DiStefano studied economics, history and a little engineering at Penn, taught writing at St. Joe's, and has written the book Comcasted, more than a thousand columns, and thousands of articles, and raised six children with his wife, who is a saint.

Reach Joseph N. at JoeD@phillynews.com or 215 854 5194.

Joseph N. DiStefano
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