With work from home more prominent than ever, businesses are continuing to shed what they consider to be excess office space in Philadelphia and surrounding suburban office markets, writes Natalie Kostelni for the Philadelphia Business Journal.
Companies from all sectors have indicated that they no longer need the same amount of space they occupied before the pandemic. As a result, sublease space is becoming more readily available and is expected to be a drag on the market for years to come.
Among the companies that are shedding space in the suburbs, Siemens recently vacated 183,000 square feet in Ambler and Comcast dropped around 67,000 square feet in Horsham. This contributed to a 23 percent jump in sublease space over the last two quarters.
However not all landlords are feeling this exodus of tenants including Rubenstein Partners, which owns multiple properties in the region including in Chesterbrook.
“We heard rumblings about more sublease space but we haven’t seen that materialize in the data just yet,” said Steve Card, a principal at Rubenstein Partners.
Read more about the office markets at the Philadelphia Business Journal by clicking here.
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