Newmark Releases Q3 Reports for Greater Philly and South Jersey Office Markets
Newmark Real Estate (Newmark) is pleased to release its third-quarter reports for the Greater Philadelphia and South Jersey Office Markets.
As of the third quarter of 2021, the Philadelphia office market continues to experience the lingering effects of COVID-19, particularly in the Downtown market. The Delta variant and rise in infections over the summer has delayed the return to the office employers expected after the Labor Day holiday. The workforce of significant Center City employers like Comcast and Independence Blue Cross remain largely remote, which has left the Central Business District (CBD) market quiet. Once those large tenants return to the office, or even if there is increased occupancy in nearby New York, other employers in Philadelphia could gain confidence to require their people to report to the office for work.
While the Suburban office market faces similar COVID-related issues as the Philadelphia CBD, tenant activity has been more robust; however, it is centered within select submarkets like Radnor/Main Line, Conshohocken, King of Prussia, and Bala Cynwyd.
You can read the full Philadelphia report here: Greater Philadelphia Office Market Report – Q3
Southern New Jersey
The Southern New Jersey office market continues to face issues related to COVID-19 and the Delta variant. Economic uncertainty is causing many tenants to delay decisions on their real estate needs. Activity in the market is slowly increasing but has not yet returned to pre-COVID-19 levels. We expect this trend to continue as employers become more comfortable with returning to the office, which is not likely to occur until early 2022. Some long-term leases are being signed; however, larger national tenants tend to be on the sideline as much as possible waiting for conditions to improve. On the plus side, landlords are holding steady on their asking rental rates, although they are improving overall deal economics through increased concessions, especially for longer-term transactions.”
“The overall vacancy rate increased to 18.9%, up from 18.2% in the previous quarter, and 320 basis points higher than a year ago when the rate was 15.7%. Most of the additional space this quarter was direct, rather than sublease, which was the trend during the first half of 2021. The amount of available sublease space expanded by only 0.6% quarter-over-quarter, after increasing by 8.2% during the first six months of the year. Average asking rental rates grew to $18.96/SF, a 0.1% uptick from the second quarter; still down from a year ago by 9.3%, when the rate was at $20.90/SF. Quarterly absorption was -66,945 square feet; an improvement from the second quarter’s -101,987 square feet.
You can read the full Souther New Jersey report here: Southern New Jersey Office Market Report – Q3
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark’s comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform’s global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. Newmark generated revenues in excess of $2.2 billion for the trailing twelve months ending June 30, 2021. Newmark’s company-owned offices, together with its business partners, operate from over 160 offices with approximately 6,200 professionals around the world. To learn more, visit nmrk.com or follow @newmark.