Philadelphia office space in high demand
11/5/2015 | Real Estate Blog
According to a recent analysis of office space in the city of Philadelphia, it is attracting many out-of-town investors. Based on information from commercial real estate services firm Colliers International, more out-of-town entities haven secured office-floor space in the city than since 2007. More specifically, according to CBRE Global Investors, 74 percent of the office square footage located between Schuylkill and the Delaware River that has been sold since the start of 2015, has been purchased by investors not located in Philadelphia.
The analysis projects that if the trend continues, 2015 could end up with the biggest share of out-of-towners in local office space, in 17 years.
There are several reasons why this is good news for commercial property buyers based in Philadelphia. In addition to increasing the value of the investments of local buyers, when it comes to new development, locally based investors should be able to more easily find financial backers. In Center City vacancy rates are currently at 8.2 percent. This is the lowest the vacancy rate has been since 2000.
When it comes to reaching agreements of this nature it is vital that all parties to it have knowledgeable legal representation on their side. This is true whether the commercial real estate matter involves the purchase, sale or lease of office space. Making sure the agreement is executed correctly could prevent issues for the business in the future. Should a problem arise, the parties involved could face great financial loss. Here again a real estate lawyer could also be of assistance.