Demand for office space in Philly lags other large metros
Philadelphia's office space industry is recovering from pandemic-driven shutdowns and shifts in work more slowly than other large metros, according to a new CBRE report.
Why it matters: Many employees are still working from home, and it's one of the main drivers behind empty downtowns in the Philly metro and across the country.
State of play: Demand for office space in Philly lags behind almost all of the top 12 U.S. office markets, compared to pre-pandemic levels.
- Only San Francisco saw slower recovery, according to the commercial real estate firm.
- Philadelphia's leasing activity modestly improved in October but still fell below 75% of its pre-pandemic baseline.
Between the lines: The city also has seen a slight decrease in sublease availability, a positive sign.
- But Philadelphia is still struggling "to reduce the record-high level of sublease space seen in September," the report states.
Of note: The report, published in October, bases its ranking on space requirements of active tenants in the market, leasing activity and sublease availability.
What they're saying: "Barring another COVID resurgence, the office market appears on increasingly firmer footing heading into 2022," the CBRE report says.
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