Suburban Office Market Seeing New Trends Emerging, Deals are Still Being Made

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The COVID-19 pandemic is prompting several new trends to emerge in the office market, including the shift by city companies to suburban satellite offices. Image via Montgomery County Planning Commission.

Despite the pandemic, the suburban office market is seeing new long-term deals finalized and new trends emerging that are pushing Center City companies to seek out short-term space for satellite offices in the suburbs, writes Natalie Kostelni for the Philadelphia Business Journal.

These satellite offices give employees an alternative workspace which helps them avoid using public transportation. This is the reversal of a previous trend that saw suburban companies migrating into Philadelphia.

One of the companies opting for suburban offices amid the pandemic is EwingCole, an architectural firm that signed a one-year sublease on 30,171 square feet in Wayne.

Also among the new and extended deals in Montgomery County, NCS Pearson recently extended its lease on a 35,734-square-foot space at Three Bala Plaza in Bala Cynwyd. Meanwhile, Orbit Biomedical has signed a lease on 10,144 square feet in King of Prussia while Finance America recently leased 60,000 square feet in Conshohocken.

However as far as rents are concerned, there has been little movement either way in recent months.

“There’s not enough activity to push landlords in any direction with rent,” said Greg Soffian, a broker with Savills.

Read more about the local office market at the Philadelphia Business Journal by clicking here.

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