The Philadelphia Office market ended the first quarter 2013 with a vacancy rate of 11.7%.
The vacancy rate was up over the previous quarter, with net absorption totaling negative 285,641 square feet in the first quarter. That compares to negative 454,307 square feet in the fourth quarter 2012. Vacant sublease space increased in the quarter, ending the quarter at 1,326,929 square feet.
Tenants moving into large blocks of space in 2013 include: GlaxoSmithKline moving into 205,000 square feet at 5 Crescent Dr; Auxilium Pharmaceuticals, Inc. moving into 74,516 square feet at Chesterbrook; and Healthcare Solutions moving into 57,055 square feet at Valley Forge Corp Center.
Rental rates ended the first quarter at $20.87, a decrease over the previous quarter.
A total of two buildings delivered to the market in the quarter totaling 505,170 square feet.
This trend is compared to the U.S. National Office vacancy rate, which decreased to 11.8% from the previous quarter, with net absorption positive 14.57 million square feet in the first quarter. Average rental rates decreased to $21.36, and 168 buildings delivered to the market totaling more than 5.9 million square feet.
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