University City is still one of the nation’s hottest submarkets for tech office space, writes Ryan Mulligan for the Philadelphia Business Journal.

Office space rents in the growing business corridor increased at the third fastest rate in the country year over year in the second quarter of 2024, according to a new CBRE report.

University City also came out on top among all tech submarkets in the country in net absorption, which is the difference between newly leased space and newly vacated space, from the third quarter of 2023 to the second quarter of this year.

The hot leasing market follows the completion of several major projects, including Schuylkill Yards, uCity Square, and University Place, which added high-quality office and lab space to the market.

Rents for office space at University City grew by 7.6 percent between the second quarter of 2023 and the second quarter of 2024 to an average of $56.51 per square foot.

Meanwhile, the larger Philadelphia market ranked No. 11, with a year-over-year increase of 2.4 percent, bringing the average to $32.92 per square foot. This puts University City office rents at a 72 percent premium over market.

Read more about University City and its tech office spaces in the Philadelphia Business Journal.

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