Q1 2023: Philadelphia Office Market Report
During the first quarter, Philadelphia experienced 791,000 square feet of negative net absorption, following the national trend of office demand. Overall, Philadelphia has remained resilient compared to most major cities because of its low reliance on the information and technology industries. In comparison to other major metros, Philadelphia’s employment base is significantly diverse, driven by the life sciences, healthcare, education, and government industries that rely mostly on in-person,work arrangements. The life sciences industry brought innovation and employment to Philadelphia, particularly in the Navy Yard and University City submarkets. During the first quarter, bioMérieux, who acquired Invisible Sentinel, signed a 10-year, 32,000-square-foot lease for 1201 Normandy in the Navy Yard, relocating from University City. Developer SkyREM announced it will convert Philadelphia’s historic Quartermaster site into the Quartermaster Science + Technology Park. The $250 million mixed-use redevelopment site will include lab space for R&D and bio-manufacturing companies. Also, Keystone Properties announced it will convert 200,000 square feet of The Curtis for life sciences, biotech, and lab space.