Leasing Activity Grows in the Suburbs but Remains Slower in the CBD

The Greater Philadelphia region reported 1.2 million square feet (msf) of transactions for the third quarter of 2022. However, while leasing activity is up 12.3% from the second quarter, it is well below pre-pandemic levels. The Philadelphia suburbs recorded an almost 17.0% bump in transactions from the prior quarter compared to 4.2% for the CBD. Comcast’s announcement that its city workers would return to the office after Labor Day will hopefully prompt more tenants to recall workers to the office and refocus on their future real estate plans. Notable transactions executed during the third quarter included Century Therapeutics’ 57,500-sf expansion at One uCity in University City, CBIZ’s relocation to 50,850 sf at 1K1 in Conshohocken and Holland & Knights’ relocation to 48,232 sf at One Liberty Place. In addition, insurance firm Chubb is in talks to pre-lease a 475,000-sf new tower to be located at 2000 Arch St in the West Market submarket.

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