"If we see Unisys moving into Center City and if in fact theBlackstone Group does formally announce that they're going to beoccupying Cira South in a couple of years, then you'll have somereal excitement and enthusiasm over the fact that Philadelphia hasbeen able to attract significant corporate tenants," RobertWalters, executive managing director of the Greater Philadelphiaoffice for CB Richard Ellis, tells GlobeSt.com. "Frankly, that's asign that we haven't enjoyed for many years. Over the years, we'velost more corporate-leader jobs than we've gained."

[IMGCAP(2)]With that said, the city's office market hascontinued its rebound from the 14% to 15% vacancy rates seenearlier in the decade. Cushman & Wakefield's midyear officereport for the Philadelphia office market showing that the city'soverall vacancy for Q2 2008 reached 9.5%. It represents a slightincrease from the first quarter but is well below the nationalaverage of 10.2%, according to a prepared release from C&W.

The two major submarkets of east and west of Broad Street haveeach seen year-over-year decreases in vacancy, according toC&W. The east of Broad vacancy rate decreased to 8.1% from12.8%; west of Broad decreased to 10.1% from 11.5%.