This market has 35 million sf of manufacturing/distribution space. Its central location between the Philadelphia and New Jersey biotech pharmaceutical hubs, however, along with competitive rental rates, "make it an ideal location for the extended growth of these types of companies," Bartolacci says.
Asking rental rates for class-A office space in the area are between $17 per sf and $18 per sf. "There are several new class-A units and sublease availabilities," he adds, "which are encouraging landlords to become more aggressive in their leasing practices."
The trend is toward construction of new office buildings in downtown marketplaces, he says, pointing to the 80,000-sf Broad & New Building going up in Bethlehem, PA, and Pennsylvania Power & Light's 209,000-sf facility under construction Downtown here.
Despite this activity, Bartolacci believes, "most developers will continue to avoid speculative office development without a lead tenant in place, thereby limiting their exposure and the potential for over-development."
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