The Greater Philadelphia area office market, which includes South Jersey, showed signs of continued demand growth before the COVID-19 pandemic hit, according to CBRE’s Q1 2020 Marketview report.
Overall occupancy within the suburbs grew at a faster pace in the first quarter of 2020 than it had in all of 2019.
Occupancy gains were significant in the quarter, the report said, especially in the suburban markets where more than 375,000 square feet was absorbed.
Capital markets saw a spike with Prologis’ acquisition of Liberty Property Trust, which accounted for most of the area’s office trades in the first quarter. But other players, including foreign capital, also played a part in sales volume.
Other highlights from the report include:
- Burlington County had a vacancy rate of 16.6%, an availability rate of 18.2% and an average Class A asking lease rate of $24.22;
- Camden County had a vacancy rate of 14.9%, an availability rate of 17.5% and average lease rates of $23.25;
- Gloucester County had a vacancy rate of 16.6% and an availability rate of 17.3%.