Center City’s CRE Vacancy Rates May Be Lower Than Chester County’s, but Perhaps Not for Long

Image via David Maialetti, The Philadelphia Inquirer.

While Philadelphia’s office market still has a lower vacancy rate than most of Chester County, this could be quickly changing, writes Harold Brubaker for The Philadelphia Inquirer.

A possible glimpse into the future was provided recently by Radian Group, which decided to move its corporate headquarters from Center City into a significantly smaller space in Wayne. The mortgage insurer said it learned during the pandemic that its employees performed well without physically reporting to the office every day.

The move is concerning for Philadelphia’s central business district. But it could mean a post-pandemic CRE boom for the collar counties.

Center City Philadelphia reported a second-quarter commercial vacancy rate of 12.2 percent. The only nearby submarket that has posted a lower vacancy rate for the same quarter is Main Line/Radnor at 6.6 percent.

Meanwhile, the Malvern/Exton/West Chester submarket currently stands at a 14.7 percent commercial vacancy rate, the same rate that the King of Prussia/Wayne submarket reported.

Read more about commercial vacancy rates in The Philadelphia Inquirer.

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