PHILADELPHIA-Newmark Grubb Knight Frank says available space in the city will decline this year, which will put upward pressure on office rents.
The commercial brokerage firm says that the year-end 2012 vacancy rate for Center City Philadelphia was 14.1%, which was flat as compared to the same time the year before. Approximately 6,2 million sf of space is available for lease in Philadelphia, according to the Philadelphia Business Journal. The firm expects that by the end of this year, the vacancy rate for the city will go down to 13.75% based on about 150,000 sf of net absorption.
“Rental rates are trending upward, slowly but surely,” says Jim Mullarkey, executive managing director at NGKF. See story in the Philadelphia Business Journal.