PHILADELPHIA-The Bala Cynwyd/Narbeth suburban office market “continues to remain one of the healthiest of all (Philadelphia suburban office) submarkets,” according to a third-quarter 2002 report compiled by Tom Sklow, principal, and John C. Shelly, vice president, of the local office of Dallas-based Trammell Crow Co. They also report, “the Newtown, Bucks County market has maintained steady growth and has emerged as one of the most desirable corporate locations in the region.”

Newtown stands in contrast to such neighboring markets as Trevose, PA and Princeton, NJ, which are struggling with climbing vacancy rates caused by limited growth corporate downsizing. Among the recent activity that has strengthened Newtown are ATI Research’s 10-year lease for 39,000 sf and Apothechem’s 8-year lease for 30,000 sf at the Lower Makefield Corporate Center.

The direct vacancy rate in Bala Cynwyd/Narbeth is 7.7% and overall vacancy is 11.9%, according to the report. The average asking rental rate for class-A office space is $27.99 per sf.

Ongoing downsizing of several corporate tenants, Sklow concedes, has caused some “downward pressure on rental rates. Even so, Bala Cynwyd/Narbeth continues to command some of the highest rates in the Greater Philadelphia area,” he says.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.