PHILADELPHIA-A report by SSH Real Estate says that a continuing trend in the local real estate market is the conversion of old office space in the city to rental apartments.
SSH Real Estate, run by Jeff Seligsohn and Peter Soens, states that there are currently 18 new apartment projects that could add 2,700 new rentals to the 40,000 already in Center City.
Over the last two decades, Center City building owners have converted 7.7 million sf of office space into apartments, including the recent 110-unit Arch (ex-Robert Morris Building) by 806 Capital and Federal Capital Partners, the 281-unit 2040 Market St. by PMC Property Group, and the more than 100-unit Tower Place (State Office Building) by Tower Investments.
The numbers tell the story—residential rents increased nearly 9% in 2012; Center City Class A apartment vacancies were under 2%, while office vacancies were more than 10%. See story in The Inquirer.