Philadelphia ViewPoint - Greater Philadelphia Office: The New Landlords of the City February 2016
Since 2013, Center City Philadelphia has experienced a surge in office building sales, and we forecast 2016 to be another strong year, perhaps record-breaking.
What does this massive change in ownership of Center City office buildings mean for those of us outside of these deals?
What are the new owners doing with their investments, and how will these changes affect both existing tenants and those looking for space?
CBRE Research discovered that the new Center City office owners are not only re-invigorating their buildings, but also driving rents higher. Between Q2 2014 and Q4 2015, average asking office rents in Center City increased 3.5%. However, in buildings representing the 21 largest recent transactions, average asking rents grew 7.5% over the same time period.