2017 greater philadelphia...

2017 GREATER PHILADELPHIA YEAR-ENDOFFICE MARKET REPORT AND OUTLOOK

Philadelphia Office Market

©2018 CoStar Group, Inc. CoStar Office Statistics A

Year-End 2017 – Philadelphia

Table of ContentsTable of Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AMethodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . BTerms & Definitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CMarket Highlights & Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1CoStar Markets & Submarkets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Inventory & Development Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Inventory & Development AnalysisSelect Top DeliveriesSelect Top Under Construction Properties

Figures at a Glance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9Figures at a Glance by Class & MarketFigures at a Glance by Class & SubmarketFigures at a Glance Grouped by CBD vs SuburbanHistorical Figures at a Glance

Leasing Activity Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17Select Top Lease Transactions

Sales Activity Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19Sales Activity AnalysisSelect Top Sales Transactions

Analysis of Individual CoStar Submarket Clusters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21Atlantic City/Hammonton MarketChambersburg/Waynesboro MarketDelaware MarketGettysburg MarketHarrisburg/Carlisle MarketI-81 Corridor MarketLancaster MarketLebanon MarketLehigh Valley MarketMonroe County MarketPhiladelphia CBD MarketPhiladelphia Non-CBD MarketReading MarketSalem County MarketSchuylkill County MarketSouthern New Jersey MarketSuburban Philadelphia MarketVineland/Bridgeton MarketYork/Hanover Market


B CoStar Office Statistics ©2018 CoStar Group, Inc.

Philadelphia – Year-End 2017


©2018 CoStar Group, Inc. CoStar Office Statistics C


MethodologyThe CoStar Office Report, unless specifically stated otherwise, calculates office statistics using CoStar Group’s entire database of existing and under construction office buildings in each metropolitan area. Included are office, office condominium, office loft, office medical, all classes and all sizes, and both multi-tenant and single-tenant buildings, including owner-occupied buildings. CoStar Group's global database includes approximately 119 billion square feet of coverage in 5.4 million properties. All rental rates reported in the CoStar Office Report have been converted to a Full Service equivalent rental rate.

© Copyright 2018 CoStar Group, Inc. All Rights Reserved. Although CoStar makes efforts to ensure the accuracy and reliability of the information contained herein, CoStar makes no guarantee, representation or warranty regarding the quality, accuracy, timeliness or completeness of the information. The publication is provided ‘as is’ and CoStar expressly disclaims any guarantees, representations or warranties of any kind, including those of MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

CoStar Group, Inc.

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For information on subscribing to CoStar’s other products and services, please contact us at 1-877-7COSTAR, or visit our web site at www.costar.com


B CoStar Office Statistics ©2018 CoStar Group, Inc.



©2018 CoStar Group, Inc. CoStar Office Statistics C


Terms & DefinitionsAvailability Rate: The ratio of available space to total rentable space, calculated by dividing the total available square feet by the total rentable square feet.Available Space: The total amount of space that is currently being marketed as available for lease in a given time period. It includes any space that is available, regardless of whether the space is vacant, occupied, available for sublease, or available at a future date. Build-to-Suit: A term describing a particular property, developed specifically for a certain tenant to occupy, with structural features, systems, or improvement work designed specifically for the needs of that tenant. A build-to-suit can be leased or owned by the tenant. In a leased build-to-suit, a tenant will usually have a long term lease on the space.Buyer: The individual, group, company, or entity that has purchased a commercial real estate asset.Cap Rate: Short for capitalization rate. The Cap Rate is a calculation that reflects the relationship between one year’s net operating income and the current market value of a particular property. The Cap Rate is calculated by dividing the annual net operating income by the sales price (or asking sales price).CBD: Abbreviation for Central Business District. (See also: Central Business District)Central Business District: The designations of Central Business District (CBD) and Suburban refer to a particular geographic area within a metropolitan statistical area (MSA) describing the level of real estate development found there. The CBD is characterized by a high density, well organized core within the largest city of a given MSA.Class A: A classification used to describe buildings that generally qualify as extremely desirable investment-grade properties and com-mand the highest rents or sale prices compared to other buildings in the same market. Such buildings are well located and provide efficient tenant layouts as well as high quality, and in some buildings, one-of-a-kind floor plans. They can be an architectural or historical landmark designed by prominent architects. These buildings contain a modern mechanical system, and have above-average maintenance and management as well as the best quality materials and workmanship in their trim and interior fittings. They are generally the most attractive and eagerly sought by investors willing to pay a premium for quality.Class B: A classification used to describe buildings that generally qualify as a more speculative investment, and as such, command lower rents or sale prices compared to Class A properties. Such buildings offer utilitarian space without special attractions, and have ordinary design, if new or fairly new; good to excellent design if an older non-landmark building. These buildings typically have average to good maintenance, management and tenants. They are less appealing to tenants than Class A properties, and may be deficient in a number of respects including floor plans, condition and facilities. They lack prestige and must depend chiefly on a lower price to attract tenants and investors.Class C: A classification used to describe buildings that generally qualify as no-frills, older buildings that offer basic space and command lower rents or sale prices compared to other buildings in the same market. Such buildings typically have below-average maintenance and management, and could have mixed or low tenant prestige, inferior elevators, and/or mechanical/electrical systems. These build-ings lack prestige and must depend chiefly on a lower price to attract tenants and investors.Construction Starts: Buildings that began construction during a specific period of time. (See also: Deliveries)Contiguous Blocks of Space: Space within a building that is, or is able to be joined together into a single contiguous space.Deliveries: Buildings that complete construction during a specified period of time. In order for space to be considered delivered, a certifi-

cate of occupancy must have been issued for the property.Delivery Date: The date a building completes construction and receives a certificate of occupancy.Developer: The company, entity or individual that transforms raw land to improved property by use of labor, capital and entrepreneurial efforts. Direct Space: Space that is being offered for lease directly from the landlord or owner of a building, as opposed to space being offered in a building by another tenant (or broker of a tenant) trying to sublet a space that has already been leased.Existing Inventory: The square footage of buildings that have received a certificate of occupancy and are able to be occupied by tenants. It does not include space in buildings that are either planned, under construction or under renovation.Flex Building: A type of building designed to be versatile, which may be used in combination with office (corporate headquarters), research and development, quasi-retail sales, and including but not limited to industrial, warehouse, and distribution uses. A typical flex building will be one or two stories with at least half of the rentable area being used as office space, have ceiling heights of 16 feet or less, and have some type of drive-in door, even though the door may be glassed in or sealed off.Full Service Rental Rate: Rental rates that include all operating expenses such as utilities, electricity, janitorial services, taxes and insur-ance.Gross Absorption: The total change in occupied space over a given period of time, counting space that is occupied but not space that is vacated by tenants. Gross absorption differs from leasing Activity, which is the sum of all space leased over a certain period of time. Unless otherwise noted Gross Absorption includes direct and sublease space.Growth in Inventory: The change in size of the existing square footage in a given area over a given period of time, generally due to the construction of new buildings.Industrial Building: A type of building adapted for such uses as the assemblage, processing, and/or manufacturing of products from raw materials or fabricated parts. Additional uses include warehous-ing, distribution, and maintenance facilities. The primary purpose of the space is for storing, producing, assembling, or distributing product.Landlord Rep: (Landlord Representative) In a typical lease transaction between an owner/landlord and tenant, the broker that represents the interests of the owner/landlord is referred to as the Landlord Rep.Leased Space: All the space that has a financial lease obligation. It includes all leased space, regardless of whether the space is currently occupied by a tenant. Leased space also includes space being offered for sublease.Leasing Activity: The volume of square footage that is commit-ted to and signed under a lease obligation for a specific building or market in a given period of time. It includes direct leases, subleases and renewals of existing leases. It also includes any pre-leasing activity in planned, under construction, or under renovation buildings.Market: Geographic boundaries that serve to delineate core areas that are competitive with each other and constitute a generally accepted primary competitive set of areas. Markets are building-type specific, and are non-overlapping contiguous geographic designations having a cumulative sum that matches the boundaries of the entire Region (See also: Region). Markets can be further subdivided into Submarkets. (See also: Submarkets)Multi-Tenant: Buildings that house more than one tenant at a given time. Usually, multi-tenant buildings were designed and built to accommodate many different floor plans and designs for different


D CoStar Office Statistics ©2018 CoStar Group, Inc.

Philadelphia – Year-End 2017 Year-End 2017 – Philadelphia


©2018 CoStar Group, Inc. CoStar Office Statistics 1

tenant needs. (See also: Tenancy).Net Absorption: The net change in occupied space over a given period of time. Unless otherwise noted Net Absorption includes direct and sublease space.Net Rental Rate: A rental rate that excludes certain expenses that a tenant could incur in occupying office space. Such expenses are expected to be paid directly by the tenant and may include janitorial costs, electricity, utilities, taxes, insurance and other related costs.New Space: Sometimes called first generation space, refers to space that has never been occupied and/or leased by a tenant.Occupied Space: Space that is physically occupied by a tenant. It does not include leased space that is not currently occupied by a tenant.Office Building: A type of commercial building used exclusively or primarily for office use (business), as opposed to manufacturing, warehousing, or other uses. Office buildings may sometimes have other associated uses within part of the building, i.e., retail sales, finan-cial, or restaurant, usually on the ground floor.Owner: The company, entity, or individual that holds title on a given building or property.Planned/Proposed: The status of a building that has been announced for future development but not yet started construction.Preleased Space: The amount of space in a building that has been leased prior to its construction completion date, or certificate of occupancy date.Price/SF: Calculated by dividing the price of a building (either sales price or asking sales price) by the Rentable Building Area (RBA).Property Manager: The company and/or person responsible for the day-to-day operations of a building, such as cleaning, trash removal, etc. The property manager also makes sure that the various systems within the building, such as the elevators, HVAC, and electrical systems, are functioning properly.Quoted Rental Rate: The asking rate per square foot for a par-ticular building or unit of space by a broker or property owner. Quoted rental rates may differ from the actual rates paid by tenants following the negotiation of all terms and conditions in a specific lease. RBA: Abbreviation for Rentable Building Area. (See also: Rentable Building Area)Region: Core areas containing a large population nucleus, that together with adjacent communities have a high degree of economic and social integration. Regions are further divided into market areas, called Markets. (See also: Markets)Relet Space: Sometimes called second generation or direct space, refers to existing space that has previously been occupied by another tenant.Rentable Building Area: (RBA) The total square footage of a building that can be occupied by, or assigned to a tenant for the purpose of determining a tenant’s rental obligation. Generally RBA includes a percentage of common areas including all hallways, main lobbies, bathrooms, and telephone closets.Rental Rates: The annual costs of occupancy for a particular space quoted on a per square foot basis.Sales Price: The total dollar amount paid for a particular property at a particular point in time.Sales Volume: The sum of sales prices for a given group of buildings in a given time period.Seller: The individual, group, company, or entity that sells a particular commercial real estate asset.SF: Abbreviation for Square Feet.Single-Tenant: Buildings that are occupied, or intended to be occupied by a single tenant. (See also: Build-to-suit and Tenancy)

Sublease Space: Space that has been leased by a tenant and is being offered for lease back to the market by the tenant with the lease obligation. Sublease space is sometimes referred to as sublet space.Submarkets: Specific geographic boundaries that serve to delin-eate a core group of buildings that are competitive with each other and constitute a generally accepted primary competitive set, or peer group. Submarkets are building type specific (office, industrial, retail, etc.), with distinct boundaries dependent on different factors relevant to each building type. Submarkets are non-overlapping, contiguous geographic designations having a cumulative sum that matches the boundaries of the Market they are located within (See also: Market).Suburban: The Suburban and Central Business District (CBD) des-ignations refer to a particular geographic area within a metropolitan statistical area (MSA). Suburban is defined as including all office inven-tory not located in the CBD. (See also: CBD)Tenancy: A term used to indicate whether or not a building is occu-pied by multiple tenants (See also: Multi-tenant) or a single tenant. (See also: Single-tenant)Tenant Rep: Tenant Rep stands for Tenant Representative. In a typical lease transaction between an owner/landlord and tenant, the broker that represents the interests of the tenant is referred to as a Tenant Rep.Time On Market: A measure of how long a currently available space has been marketed for lease, regardless of whether it is vacant or occupied.Under Construction: Buildings in a state of construction, up until they receive their certificate of occupancy. In order for CoStar to consider a building under construction, the site must have a concrete foundation in place. Abbreviated UC.Vacancy Rate: A measurement expressed as a percentage of the total amount of physically vacant space divided by the total amount of existing inventory. Under construction space generally is not included in vacancy calculations.Vacant Space: Space that is not currently occupied by a tenant, regardless of any lease obligation that may be on the space. Vacant space could be space that is either available or not available. For example, sublease space that is currently being paid for by a tenant but not occupied by that tenant, would be considered vacant space. Likewise, space that has been leased but not yet occupied because of finish work being done, would also be considered vacant space. Weighted Average Rental Rate: Rental rates that are cal-culated by factoring in, or weighting, the square footage associated with each particular rental rate. This has the effect of causing rental rates on larger spaces to affect the average more than that of smaller spaces. The weighted average rental rate is calculated by taking the ratio of the square footage associated with the rental rate on each individual available space to the square footage associated with rental rates on all available spaces, multiplying the rental rate by that ratio, and then adding together all the resulting numbers. Unless specifically specified otherwise, rental rate averages include both Direct and Sublet available spaces.Year Built: The year in which a building completed construction and was issued a certificate of occupancy.YTD: Abbreviation for Year-to-Date. Describes statistics that are cumulative from the beginning of a calendar year through whatever time period is being studied.


D CoStar Office Statistics ©2018 CoStar Group, Inc.

Philadelphia – Year-End 2017 Year-End 2017 – Philadelphia



Overview

Philadelphia’s Vacancy Increases to 8.3% Net Absorption Negative (255,201) SF in the Quarter

The Philadelphia Office market ended the fourth quarter 2017 with a vacancy rate of 8.3%. The vacancy rate was up over the previous quarter, with net absorption totaling

negative (255,201) square feet in the fourth quarter. Vacant sublease space increased in the quarter, ending the quarter at 1,365,518 square feet. Rental rates ended the fourth quarter at $22.94, an increase over the previous quarter. A total of two buildings delivered to the market in the quarter totaling 157,200 square feet, with 3,943,608 square feet still under con-struction at the end of the quarter.

AbsorptionNet absorption for the overall Philadelphia office market

was negative (255,201) square feet in the fourth quarter 2017. That compares to positive 583,463 square feet in the third quarter 2017, positive 1,112,642 square feet in the second quar-ter 2017, and positive 811,039 square feet in the first quarter 2017.

Tenants moving out of large blocks of space in 2017 include: Endo Pharmaceuticals, Inc. moving out of 360,000 square feet at 1400 Atwater Dr; PHH Corporation moving out of 358,522 square feet at Cendant Corporate Campus; and Montgomery McCracken Walker & Rhoads LLP moving out of 329,609 square feet at 123 S Broad St.

Tenants moving into large blocks of space in 2017 include: Thomas Jefferson University Hospital moving into 179,279 square feet at 833 Chestnut; Vertex Inc. moving into 168,000 square feet at 2301 Renaissance Blvd; and Deloitte moving into 124,856 square feet at 1700 Market St.

The Class-A office market recorded net absorption of

negative (161,057) square feet in the fourth quarter 2017, compared to positive 631,815 square feet in the third quarter 2017, positive 101,428 in the second quarter 2017, and negative (78,892) in the first quarter 2017.

The Class-B office market recorded net absorption of negative (259,250) square feet in the fourth quarter 2017, compared to positive 137,839 square feet in the third quarter 2017, positive 883,751 in the second quarter 2017, and positive 692,054 in the first quarter 2017.

The Class-C office market recorded net absorption of positive 165,106 square feet in the fourth quarter 2017 com-pared to negative (186,191) square feet in the third quarter 2017, positive 127,463 in the second quarter 2017, and positive 197,877 in the first quarter 2017.

Net absorption for Philadelphia’s central business district was negative (367,020) square feet in the fourth quarter 2017. That compares to positive 201,295 square feet in the third quarter 2017, positive 33,196 in the second quarter 2017, and positive 298,556 in the first quarter 2017.

Net absorption for the suburban markets was positive 111,819 square feet in the fourth quarter 2017. That compares to positive 382,168 square feet in third quarter 2017, positive 1,079,446 in the second quarter 2017, and positive 512,483 in the first quarter 2017.

VacancyThe office vacancy rate in the Philadelphia market area

increased to 8.3% at the end of the fourth quarter 2017. The vacancy rate was 8.2% at the end of the third quarter 2017, 8.2% at the end of the second quarter 2017, and 8.5% at the

Vacancy Rates by Class 1997-2017

Source: CoStar Property®

Absorption & Deliveries U.S. Vacancy ComparisonPast 10 Quarters Past 10 Quarters

Source: CoStar Property® Source: CoStar Property®

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Philadelphia United States

2 CoStar Office Statistics ©2018 CoStar Group, Inc.

Philadelphia � Year-End 2017

Philadelphia Office MarketYear-End 2017 – Philadelphia



Overview

end of the first quarter 2017. Class-A projects reported a vacancy rate of 10.3% at the

end of the fourth quarter 2017, 10.1% at the end of the third quarter 2017, 10.3% at the end of the second quarter 2017, and 10.4% at the end of the first quarter 2017.

Class-B projects reported a vacancy rate of 8.2% at the end of the fourth quarter 2017, 8.1% at the end of the third quarter 2017, 8.1% at the end of the second quarter 2017, and 8.5% at the end of the first quarter 2017.

Class-C projects reported a vacancy rate of 5.9% at the end of the fourth quarter 2017, 6.0% at the end of third quarter 2017, 5.9% at the end of the second quarter 2017, and 6.2% at the end of the first quarter 2017.

The overall vacancy rate in Philadelphia’s central business district at the end of the fourth quarter 2017 increased to 8.8%. The vacancy rate was 8.2% at the end of the third quarter 2017, 8.6% at the end of the second quarter 2017, and 8.6% at the end of the first quarter 2017.

The vacancy rate in the suburban markets changed to 8.2% in the fourth quarter 2017. The vacancy rate was 8.2% at the end of the third quarter 2017, 8.2% at the end of the second quarter 2017, and 8.4% at the end of the first quarter 2017.

Largest Lease SigningsThe largest lease signings occurring in 2017 included:

the 240,780-square-foot lease signed by Capital One at 802 Delaware Ave in the Delaware market; the 115,664-square-foot lease signed by Comcast at 300 N Wakefield Dr in the Delaware market, and the 107,669-square-foot lease signed by Spark Therapeutics at 1 Drexel Plaza in the Philadelphia market.

Sublease VacancyThe amount of vacant sublease space in the Philadelphia

market increased to 1,365,518 square feet by the end of the

fourth quarter 2017, from 1,168,935 square feet at the end of the third quarter 2017. There was 1,104,167 square feet vacant at the end of the second quarter 2017 and 1,103,131 square feet at the end of the first quarter 2017.

Philadelphia’s Class-A projects reported vacant sublease space of 1,014,512 square feet at the end of fourth quarter 2017, up from the 821,415 square feet reported at the end of the third quarter 2017. There were 777,338 square feet of sublease space vacant at the end of the second quarter 2017, and 775,191 square feet at the end of the first quarter 2017.

Class-B projects reported vacant sublease space of 260,803 square feet at the end of the fourth quarter 2017, down from the 264,324 square feet reported at the end of the third quarter 2017. At the end of the second quarter 2017 there were 252,735 square feet, and at the end of the first quarter 2017 there were 252,166 square feet vacant.

Class-C projects reported increased vacant sublease space from the third quarter 2017 to the fourth quarter 2017. Sublease vacancy went from 83,196 square feet to 90,203 square feet during that time. There was 74,094 square feet at the end of the second quarter 2017, and 75,774 square feet at the end of the first quarter 2017.

Sublease vacancy in Philadelphia’s central business district stood at 522,309 square feet at the end of the fourth quarter 2017. It was 491,384 square feet at the end of the third quarter 2017, 485,650 square feet at the end of the second quarter 2017, and 452,885 square feet at the end of the first quarter 2017.

Sublease vacancy in the suburban markets ended the fourth quarter 2017 at 843,209 square feet. At the end of the third quarter 2017 sublease vacancy was 677,551 square feet, was 618,517 square feet at the end of the second quarter 2017, and was 650,246 square feet at the end of the first quarter 2017.

Rental RatesThe average quoted asking rental rate for available office

space, all classes, was $22.94 per square foot per year at the end of the fourth quarter 2017 in the Philadelphia market area. This represented a 0.7% increase in quoted rental rates from the end of the third quarter 2017, when rents were reported at $22.77 per square foot.

The average quoted rate within the Class-A sector was $27.37 at the end of the fourth quarter 2017, while Class-B rates stood at $21.01, and Class-C rates at $18.70. At the end of the third quarter 2017, Class-A rates were $27.76 per square foot, Class-B rates were $20.51, and Class-C rates were $18.26.

The average quoted asking rental rate in Philadelphia’s CBD was $29.46 at the end of the fourth quarter 2017, and $21.86 in the suburban markets. In the third quarter 2017, quot-ed rates were $29.50 in the CBD and $21.70 in the suburbs.





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Overview

Deliveries and ConstructionDuring the fourth quarter 2017, two buildings totaling

157,200 square feet were completed in the Philadelphia market area. This compares to 13 buildings totaling 452,926 square feet that were completed in the third quarter 2017, 10 buildings totaling 297,246 square feet completed in the second quarter 2017, and 261,266 square feet in six buildings completed in the first quarter 2017.

There were 3,943,608 square feet of office space under construction at the end of the fourth quarter 2017.

Some of the notable 2017 deliveries include: 1801 Augustine Cut Off, a 154,000-square-foot facility that delivered in fourth quarter 2017 and is now 100% occupied, and CSC Corporate HQ, a 148,437-square-foot building that delivered in third quarter 2017 and is now 100% occupied.

The largest projects underway at the end of fourth quarter 2017 were Comcast Technology Center, a 1,336,682-square-foot building with 100% of its space pre-leased, and 3600 Civic Center Blvd, a 540,000-square-foot facility that is 100% pre-leased.

InventoryTotal office inventory in the Philadelphia market area

amounted to 425,706,145 square feet in 23,866 buildings as of the end of the fourth quarter 2017. The Class-A office sec-tor consisted of 133,734,452 square feet in 1,001 projects. There were 8,273 Class-B buildings totaling 180,518,434 square feet, and the Class-C sector consisted of 111,453,259 square feet in 14,592 buildings. Within the Office market there were 1,008 owner-occupied buildings accounting for 37,284,439 square feet of office space.

Sales ActivityTallying office building sales of 15,000 square feet or larg-

er, Philadelphia office sales figures rose during the third quarter 2017 in terms of dollar volume compared to the second quarter of 2017.

In the third quarter, 46 office transactions closed with a total volume of $682,609,450. The 46 buildings totaled 4,777,587 square feet and the average price per square foot equated to $142.88 per square foot. That compares to 56

transactions totaling $508,760,478 in the second quarter 2017. The total square footage in the second quarter was 5,498,836 square feet for an average price per square foot of $92.52.

Total office building sales activity in 2017 was down compared to 2016. In the first nine months of 2017, the mar-ket saw 148 office sales transactions with a total volume of $1,709,250,828. The price per square foot averaged $117.02. In the same first nine months of 2016, the market posted 124 transactions with a total volume of $1,941,950,621. The price per square foot averaged $163.54.

Cap rates have been higher in 2017, averaging 8.29% compared to the same period in 2016 when they averaged 7.46%.

One of the largest transactions that has occurred within the last four quarters in the Philadelphia market is the sale of Two Liberty Place at 50 S. 16th St. in Philadelphia. This 938,753-square-foot office building sold for $219,000,000, or $233.29 per square foot. The property sold on 10/14/2016, at a 6.24% cap rate.

Reports compiled by Danyelle Levi and Bill Baumgardner, CoStar Group Research Managers.





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CoStar Submarket Clusters & SubmarketsIn analyzing metropolitan areas, CoStar has developed geographic designations to help group properties together, called Markets, Submarket Clusters and Submarkets. Markets are the equivalent of metropolitan areas, or areas containing a large population nucleus, that together with adjacent communities have a high degree of economic and social integration. Markets are then divided into Submarket Clusters, which are core areas within a metropolitan area that are known to be competitive with each other in terms of attracting and keeping tenants. Markets are then further subdivided into smaller units called Submarkets, which serve to delineate a core group of buildings that are competitive with each other and constitute a generally accepted competitive set, or peer group.

Markets

Submarket Clusters Submarkets

Atlantic City/Hammonton Atlantic City/Hammonton

Chambersburg/Waynesboro Chambersburg/Waynesboro

Delaware North New Castle County South New Castle County West New Castle County Wilmington CBD

Gettysburg Adams County

Harrisburg/Carlisle Harrisburg Area East Harrisburg Area West

I-81 Corridor I-81 Corridor

Lancaster Lancaster County

Lebanon Lebanon

Lehigh Valley Lehigh Valley

Monroe County Monroe County

Philadelphia CBD Independence Hall* Market Street East* Market Street West*

Philadelphia Non-CBD Navy Yard Northeast Philadelphia Northwest Philadelphia South PhiladelphiaUniversity City West Philadelphia

Reading Berks County

Salem County Salem County

Schuylkill County Schuylkill County

Southern New Jersey Gloucester County North Burlington County North Camden County South Burlington CountySouth Camden County

Suburban Philadelphia Bala Cynwyd/Narberth Conshohocken Delaware County Exton/WhitelandsFt Wash/Spring House Horsham/Willow Grove King of Prussia/Wayne Lower Bucks CountyMain Line Norristown/Valley Forge Outer Chester County Plymouth Mtg/Blue BellUpper Bucks County Upper Main Line West Chester West Montgomery County

Vineland/Bridgeton Vineland/Bridgeton

York/Hanover York County

* Submarkets comprising the CBD. For statistics reference the CBD vs Suburban Figures at a Glance Page.






Historical Deliveries 1982 - 2017

Source: CoStar Property® * Future deliveries based on current under construction buildings.

Construction Activity Markets Ranked by Under Construction Square Footage

# Bldgs Preleased SF Preleased % All Existing U/C

Philadelphia CBD 1 1,336,682 100.0% 80,718 1,336,682

Philadelphia Non-CBD 5 364,000 32.8% 16,803 222,200

Southern New Jersey 10 727,352 94.6% 11,553 76,865

Lehigh Valley 3 213,409 74.1% 16,918 95,944

Delaware 3 44,550 42.7% 27,915 34,747

Suburban Philadelphia 5 67,099 72.0% 17,443 18,640

Atlantic City/Hammonton 2 25,900 31.6% 10,889 41,000

Harrisburg/Carlisle 2 54,500 77.9% 18,534 35,000

I-81 Corridor 2 42,000 70.0% 13,548 30,000

Monroe County 1 0 0.0% 6,248 18,000

All Other 1 0 0.0% 12,010 12,000

Totals 35 2,875,492 72.9% 17,837 112,675


Recent Deliveries Future Deliveries Leased & Un-Leased SF in Deliveries Since 2013 Preleased & Un-Leased SF in Properties Scheduled to Deliver


18,000

93,202

82,000

70,000

60,000

1,111,000

768,652

287,832

104,240

12,000

3,943,608

Market

Under Construction Inventory Average Bldg Size

Total RBA

1,336,682

5.5

4.5

6.8

11.4

9.6

11.3

12.3

9.8

13.0

3.8 4.0

1.92.3 2.5

3.43.8

5.9

7.1

4.9

6.8

4.94.6

3.3

4.2

6.45.8

3.1 3.2

1.51.0 1.2 1.2

2.01.3

2.1

1.2

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

1982 1986 1990 1994 1998 2002 2006 2010 2014

Millions

of

SF

Deliveries Average Delivered SF

0.0

0.5

1.0

1.5

2.0

2.5

2013 2015 2017

Millions

of

SF

Leased Un-Leased

0

500

1,000

1,500

2,000

2,500

2018 1q 2018 3q

T

Tho

usa

nds

of

SF

Preleased Un-Leased

Inventory & development






Historical Construction Starts & DeliveriesSquare Footage Per Quarter Starting and Completing Construction


Recent Deliveries by Project Size Breakdown of Year-to-Date Development Based on RBA of Project

Building Size # Bldgs RBA SF Leased % Leased Avg Rate Single-Tenant Multi-Tenant

< 50,000 SF 24 243,894 228,786 93.8% $23.86 50,075 193,819

50,000 SF - 99,999 SF 6 431,047 276,635 64.2% $24.15 93,000 338,047

100,000 SF - 249,999 SF 4 513,737 462,584 90.0% $33.00 148,437 365,300

250,000 SF - 499,999 SF 0 0 0 0.0% $0.00 0 0

>= 500,000 SF 0 0 0 0.0% $0.00 0 0


Recent Development by Tenancy Existing Inventory ComparisonBased on RBA Developed for Single & Multi Tenant Use Based on Total RBA

2017 Deliveries


Currently Under Construction By Class By Space Type

0.20

1.24

0.10

0.94

0.03

0.570.48

0.64

0.30

0.610.52

0.61

0.25

0.92

0.17

(0.01)

0.15

0.45

0.23

0.60

0.46

0.31

0.41

0.140.07

0.50

0.87

0.52

0.26 0.30

0.45

0.16

(0.2)

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

2014 1q 2015 1q 2016 1q 2017 1q

Millions

of

SF

Construction Starts Deliveries

95%

5%

Multi Single

75%

25%

Multi Single

26%

31%

43%

Class A Class B Class C

19%

81%

Multi Single







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Class A Market Statistics Year-End 2017

YTD Net YTD Under Quoted

Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates

Atlantic City/Hammonton 8 765,000 76,356 76,356 10.0% (20,024) 0 66,000 $21.18

Chambersburg/Waynesboro 0 0 0 0 0.0% 0 0 0 $0.00

Delaware 116 14,744,448 1,696,374 1,761,259 11.9% 263,958 302,437 102,000 $27.01

Gettysburg 1 57,390 18,510 18,510 32.3% 7,730 0 0 $22.55

Harrisburg/Carlisle 71 7,374,145 468,361 483,361 6.6% 78,389 60,000 40,000 $20.25

I-81 Corridor 29 2,112,444 113,364 127,810 6.1% 31,638 0 42,000 $18.79

Lancaster 17 822,885 36,999 36,999 4.5% 3,195 0 0 $21.74

Lebanon 0 0 0 0 0.0% 0 0 0 $0.00

Lehigh Valley 54 6,490,296 641,307 652,452 10.1% 407,702 75,000 127,832 $26.57

Monroe County 3 141,000 6,000 6,000 4.3% 14,000 0 0 $28.50

Philadelphia CBD 62 36,702,155 3,359,773 3,784,455 10.3% (319,868) 0 1,336,682 $31.17

Philadelphia Non-CBD 18 4,899,539 607,399 722,058 14.7% (338,283) 0 1,065,000 $32.79

Reading 19 1,958,449 34,134 39,134 2.0% 33,902 0 0 $18.87

Salem County 2 152,251 6,484 6,484 4.3% 8,455 0 0 $0.00

Schuylkill County 0 0 0 0 0.0% 0 0 0 $0.00

Southern New Jersey 95 8,642,802 585,857 634,402 7.3% 25,529 0 694,752 $19.80

Suburban Philadelphia 501 48,458,574 5,007,884 5,324,034 11.0% 294,848 282,231 0 $27.24

Vineland/Bridgeton 0 0 0 0 0.0% 0 0 0 $0.00

York/Hanover 5 413,074 109,153 109,153 26.4% 2,123 0 0 $21.40

Totals 1,001 133,734,452 12,767,955 13,782,467 10.3% 493,294 719,668 3,474,266 $27.37


Class B Market Statistics Year-End 2017



Atlantic City/Hammonton 214 2,926,000 263,873 263,873 9.0% 52,943 14,800 16,000 $20.40

Chambersburg/Waynesboro 51 499,704 24,299 24,299 4.9% (2,982) 0 0 $17.45

Delaware 483 13,946,988 685,554 685,554 4.9% 137,160 0 2,240 $20.99

Gettysburg 34 363,570 12,150 12,150 3.3% (7,350) 0 0 $14.24

Harrisburg/Carlisle 684 17,389,928 1,009,549 1,014,813 5.8% (45,347) 13,000 30,000 $17.41

I-81 Corridor 430 8,169,796 516,476 523,029 6.4% (78,727) 7,400 18,000 $17.77

Lancaster 365 7,163,382 510,103 510,503 7.1% 215,453 113,000 12,000 $17.47

Lebanon 44 520,074 28,978 28,978 5.6% 2,039 0 0 $11.89

Lehigh Valley 633 12,915,143 803,631 821,510 6.4% 288,235 126,840 160,000 $19.14

Monroe County 120 1,014,932 67,953 67,953 6.7% 5,484 0 18,000 $17.60

Philadelphia CBD 250 17,803,679 1,296,215 1,326,216 7.4% 506,224 6,000 0 $25.75

Philadelphia Non-CBD 438 13,187,224 1,075,908 1,107,713 8.4% 156,816 0 46,000 $24.29

Reading 271 5,646,671 341,595 343,660 6.1% 127,522 0 0 $16.06

Salem County 22 506,658 18,410 18,410 3.6% 2,841 0 0 $17.16

Schuylkill County 40 533,753 10,610 10,610 2.0% (8,485) 0 0 $18.08

Southern New Jersey 1,064 18,259,760 1,828,601 1,848,859 10.1% 19,500 108,241 73,900 $16.77

Suburban Philadelphia 2,826 54,906,718 5,806,191 5,945,319 10.8% 59,618 59,689 93,202 $22.49

Vineland/Bridgeton 87 956,957 109,793 109,793 11.5% (57,543) 0 0 $20.06

York/Hanover 217 3,807,497 198,262 205,712 5.4% 80,993 0 0 $18.73

Totals 8,273 180,518,434 14,608,151 14,868,954 8.2% 1,454,394 448,970 469,342 $21.01


Existing Inventory Vacancy


Figures at a Glance






Class C Market Statistics Year-End 2017



Atlantic City/Hammonton 395 3,027,650 225,704 225,704 7.5% (40,122) 0 0 $20.19

Chambersburg/Waynesboro 104 656,682 25,074 25,074 3.8% (6,837) 0 0 $17.79

Delaware 625 5,475,931 339,346 348,971 6.4% (36,894) 0 0 $18.92

Gettysburg 79 416,638 9,313 9,313 2.2% 317 0 0 $16.40

Harrisburg/Carlisle 1,005 7,856,182 542,900 542,900 6.9% (126,523) 0 0 $16.84

I-81 Corridor 711 5,568,867 162,677 162,677 2.9% 103,147 0 0 $16.31

Lancaster 575 5,016,087 240,874 244,834 4.9% (112,377) 0 0 $16.71

Lebanon 96 562,877 27,499 27,499 4.9% (14,649) 0 0 $13.62

Lehigh Valley 898 7,409,168 585,475 585,475 7.9% (34,890) 0 0 $16.10

Monroe County 233 1,068,389 83,217 83,217 7.8% (24,018) 0 0 $14.29

Philadelphia CBD 446 6,678,287 229,114 296,740 4.4% (20,329) 0 0 $24.27

Philadelphia Non-CBD 1,571 15,972,776 1,180,681 1,180,681 7.4% 46,625 0 0 $21.30

Reading 392 3,403,297 139,269 139,269 4.1% (24,106) 0 0 $14.19

Salem County 73 283,832 6,588 6,588 2.3% 8,414 0 0 $14.57

Schuylkill County 106 645,724 11,800 11,800 1.8% 12,042 0 0 $13.98

Southern New Jersey 2,334 13,451,984 825,908 825,908 6.1% 114,043 0 0 $14.22

Suburban Philadelphia 4,237 28,570,859 1,592,685 1,601,677 5.6% 517,208 0 0 $20.34

Vineland/Bridgeton 185 1,207,972 64,692 64,692 5.4% 7,491 0 0 $17.80

York/Hanover 527 4,180,057 182,696 182,696 4.4% (64,287) 0 0 $14.92

Totals 14,592 111,453,259 6,475,512 6,565,715 5.9% 304,255 0 0 $18.70


Total Office Market Statistics Year-End 2017



Atlantic City/Hammonton 617 6,718,650 565,933 565,933 8.4% (7,203) 14,800 82,000 $20.37

Chambersburg/Waynesboro 155 1,156,386 49,373 49,373 4.3% (9,819) 0 0 $17.66

Delaware 1,224 34,167,367 2,721,274 2,795,784 8.2% 364,224 302,437 104,240 $24.69

Gettysburg 114 837,598 39,973 39,973 4.8% 697 0 0 $18.32

Harrisburg/Carlisle 1,760 32,620,255 2,020,810 2,041,074 6.3% (93,481) 73,000 70,000 $18.12

I-81 Corridor 1,170 15,851,107 792,517 813,516 5.1% 56,058 7,400 60,000 $17.45

Lancaster 957 13,002,354 787,976 792,336 6.1% 106,271 113,000 12,000 $17.46

Lebanon 140 1,082,951 56,477 56,477 5.2% (12,610) 0 0 $12.85

Lehigh Valley 1,585 26,814,607 2,030,413 2,059,437 7.7% 661,047 201,840 287,832 $21.08

Monroe County 356 2,224,321 157,170 157,170 7.1% (4,534) 0 18,000 $16.25

Philadelphia CBD 758 61,184,121 4,885,102 5,407,411 8.8% 166,027 6,000 1,336,682 $29.46

Philadelphia Non-CBD 2,027 34,059,539 2,863,988 3,010,452 8.8% (134,842) 0 1,111,000 $23.76

Reading 682 11,008,417 514,998 522,063 4.7% 137,318 0 0 $16.21

Salem County 97 942,741 31,482 31,482 3.3% 19,710 0 0 $15.91

Schuylkill County 146 1,179,477 22,410 22,410 1.9% 3,557 0 0 $16.12

Southern New Jersey 3,493 40,354,546 3,240,366 3,309,169 8.2% 159,072 108,241 768,652 $16.74

Suburban Philadelphia 7,564 131,936,151 12,406,760 12,871,030 9.8% 871,674 341,920 93,202 $23.96

Vineland/Bridgeton 272 2,164,929 174,485 174,485 8.1% (50,052) 0 0 $18.46

York/Hanover 749 8,400,628 490,111 497,561 5.9% 18,829 0 0 $17.74

Totals 23,866 425,706,145 33,851,618 35,217,136 8.3% 2,251,943 1,168,638 3,943,608 $22.94




Figures at a Glance






Figures at a Glance

Class A Submarket Statistics Year-End 2017



Adams County 1 57,390 18,510 18,510 32.3% 7,730 0 0 $22.55

Atlantic City/Hammon. 8 765,000 76,356 76,356 10.0% (20,024) 0 66,000 $21.18

Bala Cynwyd/Narberth 14 2,256,533 144,554 148,442 6.6% 98,760 0 0 $33.36

Berks County 19 1,958,449 34,134 39,134 2.0% 33,902 0 0 $18.87

Chambersburg/Waynesb. 0 0 0 0 0.0% 0 0 0 $0.00

Conshohocken 24 3,374,667 201,837 234,037 6.9% 3,819 0 0 $34.03

Delaware County 45 4,769,790 510,692 510,692 10.7% (57,954) 70,931 0 $26.89

Exton/Whitelands 79 6,875,026 296,758 319,098 4.6% 148,913 0 0 $25.08

Ft Wash/Spring House 20 2,445,869 386,508 393,589 16.1% 71,691 0 0 $24.27

Gloucester County 3 150,140 2,100 2,100 1.4% (150) 0 0 $0.00

Harrisburg Area East 39 5,058,322 288,858 303,858 6.0% 50,185 0 0 $20.13

Harrisburg Area West 32 2,315,823 179,503 179,503 7.8% 28,204 60,000 40,000 $20.47

Horsham/Willow Grove 38 3,899,856 357,739 428,219 11.0% (111,714) 0 0 $23.70

I-81 Corridor 29 2,112,444 113,364 127,810 6.1% 31,638 0 42,000 $18.79

Independence Hall 9 5,028,578 418,042 616,793 12.3% (148,986) 0 0 $30.44

King of Prussia/Wayn. 91 8,646,815 998,816 1,040,411 12.0% 134,423 111,000 0 $29.21

Lancaster County 17 822,885 36,999 36,999 4.5% 3,195 0 0 $21.74

Lebanon 0 0 0 0 0.0% 0 0 0 $0.00

Lehigh Valley 54 6,490,296 641,307 652,452 10.1% 407,702 75,000 127,832 $26.57

Lower Bucks County 52 3,889,345 759,101 766,128 19.7% 143,585 0 0 $24.44

Main Line 8 417,314 74,085 74,085 17.8% 54,033 100,300 0 $33.96

Market Street East 7 3,424,244 220,579 220,579 6.4% 10,679 0 0 $33.85

Market Street West 46 28,249,333 2,721,152 2,947,083 10.4% (181,561) 0 1,336,682 $31.05

Monroe County 3 141,000 6,000 6,000 4.3% 14,000 0 0 $28.50

Navy Yard 6 579,121 0 0 0.0% 11,121 0 175,000 $50.28

Norristown/Valley Fo. 20 2,419,253 112,513 115,333 4.8% 51,573 0 0 $22.85

North Burlington Cou. 27 2,492,591 116,615 142,568 5.7% (9,178) 0 0 $16.99

North Camden County 20 1,714,369 177,642 185,246 10.8% 29,645 0 694,752 $21.56

North New Castle Cou. 27 2,629,069 130,211 188,841 7.2% 81,019 154,000 0 $26.17

Northeast Philadelph. 3 1,617,246 354,158 354,158 21.9% (30,483) 0 0 $0.00

Northwest Philadelph. 0 0 0 0 0.0% 0 0 0 $0.00

Outer Chester County 6 438,233 30,870 30,870 7.0% (23,302) 0 0 $0.00

Plymouth Mtg/Blue Be. 47 4,027,552 756,201 805,983 20.0% (144,297) 0 0 $26.85

Salem County 2 152,251 6,484 6,484 4.3% 8,455 0 0 $0.00

Schuylkill County 0 0 0 0 0.0% 0 0 0 $0.00

South Burlington Cou. 36 2,950,466 232,174 247,162 8.4% 24,194 0 0 $21.87

South Camden County 9 1,335,236 57,326 57,326 4.3% (18,982) 0 0 $18.12

South New Castle Cou. 39 3,245,030 365,659 368,636 11.4% 55,213 0 0 $24.58

South Philadelphia 1 441,000 0 114,659 26.0% (114,659) 0 0 $22.00

University City 8 2,262,172 253,241 253,241 11.2% (204,262) 0 890,000 $41.42

Upper Bucks County 10 522,443 32,276 32,276 6.2% 23,573 0 0 $26.32

Upper Main Line 23 2,273,551 261,504 285,968 12.6% (87,764) 0 0 $34.78

Vineland/Bridgeton 0 0 0 0 0.0% 0 0 0 $0.00

West Chester 14 759,228 64,874 64,874 8.5% 42 0 0 $26.52

West Montgomery Coun. 10 1,443,099 19,556 74,029 5.1% (10,533) 0 0 $23.55

West New Castle Coun. 17 1,646,567 176,811 176,811 10.7% 60,764 148,437 102,000 $26.04

West Philadelphia 0 0 0 0 0.0% 0 0 0 $0.00

Wilmington CBD 33 7,223,782 1,023,693 1,026,971 14.2% 66,962 0 0 $28.11

York County 5 413,074 109,153 109,153 26.4% 2,123 0 0 $21.40

Totals 1,001 133,734,452 12,767,955 13,782,467 10.3% 493,294 719,668 3,474,266 $27.37








Figures at a Glance

Class B Submarket Statistics Year-End 2017



Adams County 34 363,570 12,150 12,150 3.3% (7,350) 0 0 $14.24

Atlantic City/Hammon. 214 2,926,000 263,873 263,873 9.0% 52,943 14,800 16,000 $20.40


Berks County 271 5,646,671 341,595 343,660 6.1% 127,522 0 0 $16.06

Chambersburg/Waynesb. 51 499,704 24,299 24,299 4.9% (2,982) 0 0 $17.45

Conshohocken 65 813,022 27,675 27,675 3.4% 22,683 0 0 $24.65

Delaware County 342 7,956,013 467,053 476,083 6.0% 84,607 6,343 40,000 $22.86

Exton/Whitelands 299 5,906,442 319,252 325,952 5.5% 18,985 11,000 11,056 $22.84

Ft Wash/Spring House 109 1,868,829 101,272 101,272 5.4% 212,037 12,646 0 $24.48

Gloucester County 220 2,362,458 150,708 150,708 6.4% 75 4,350 19,500 $14.42

Harrisburg Area East 378 10,617,479 689,206 691,300 6.5% 46,295 0 30,000 $16.82

Harrisburg Area West 306 6,772,449 320,343 323,513 4.8% (91,642) 13,000 0 $18.28

Horsham/Willow Grove 220 5,636,660 645,970 664,970 11.8% 136,909 0 0 $23.85

I-81 Corridor 430 8,169,796 516,476 523,029 6.4% (78,727) 7,400 18,000 $17.77

Independence Hall 50 3,391,036 633,671 635,993 18.8% (114,687) 6,000 0 $25.10

King of Prussia/Wayn. 161 4,545,999 849,568 849,568 18.7% (99,179) 0 0 $24.53

Lancaster County 365 7,163,382 510,103 510,503 7.1% 215,453 113,000 12,000 $17.47

Lebanon 44 520,074 28,978 28,978 5.6% 2,039 0 0 $11.89

Lehigh Valley 633 12,915,143 803,631 821,510 6.4% 288,235 126,840 160,000 $19.14

Lower Bucks County 423 7,388,285 1,144,284 1,162,964 15.7% (129,199) 0 27,099 $19.20

Main Line 63 1,052,396 53,752 53,752 5.1% 1,504 0 0 $30.76


Market Street West 127 7,605,389 282,596 295,143 3.9% 559,293 0 0 $23.60

Monroe County 120 1,014,932 67,953 67,953 6.7% 5,484 0 18,000 $17.60

Navy Yard 14 510,489 32,181 61,411 12.0% 15,094 0 0 $40.50


North Burlington Cou. 163 3,492,062 317,616 321,457 9.2% (50,159) 6,800 15,800 $17.11

North Camden County 255 5,118,895 668,943 679,102 13.3% 21,241 74,551 0 $17.08

North New Castle Cou. 73 2,791,405 199,796 199,796 7.2% 5,236 0 0 $21.61

Northeast Philadelph. 186 5,152,468 683,922 683,922 13.3% 138,935 0 46,000 $22.50

Northwest Philadelph. 100 3,338,554 138,968 141,543 4.2% 48,870 0 0 $20.72

Outer Chester County 105 1,390,879 101,224 101,224 7.3% (27,368) 0 0 $20.03

Plymouth Mtg/Blue Be. 138 3,815,046 839,861 885,029 23.2% 43,560 14,000 0 $26.10

Salem County 22 506,658 18,410 18,410 3.6% 2,841 0 0 $17.16

Schuylkill County 40 533,753 10,610 10,610 2.0% (8,485) 0 0 $18.08

South Burlington Cou. 222 4,057,118 304,932 304,932 7.5% (22,017) 15,540 38,600 $15.18

South Camden County 204 3,229,227 386,402 392,660 12.2% 70,360 7,000 0 $18.34


South Philadelphia 79 1,454,161 141,315 141,315 9.7% (40,722) 0 0 $28.57

University City 35 2,082,517 25,618 25,618 1.2% (3,520) 0 0 $32.74

Upper Bucks County 196 1,953,454 183,912 187,112 9.6% 33,185 12,500 0 $18.30

Upper Main Line 112 1,813,690 99,159 107,159 5.9% 19,647 0 0 $22.74

Vineland/Bridgeton 87 956,957 109,793 109,793 11.5% (57,543) 0 0 $20.06

West Chester 161 2,809,077 161,248 161,248 5.7% 15,371 3,200 0 $22.58

West Montgomery Coun. 254 3,562,297 501,642 527,950 14.8% (334,382) 0 15,047 $18.21

West New Castle Coun. 105 2,476,940 86,974 86,974 3.5% (18,060) 0 2,240 $26.67

West Philadelphia 24 649,035 53,904 53,904 8.3% (1,841) 0 0 $21.30

Wilmington CBD 99 4,387,966 157,367 157,367 3.6% 129,686 0 0 $19.76

York County 217 3,807,497 198,262 205,712 5.4% 80,993 0 0 $18.73

Totals 8,273 180,518,434 14,608,151 14,868,954 8.2% 1,454,394 448,970 469,342 $21.01








Figures at a Glance

Class C Submarket Statistics Year-End 2017



Adams County 79 416,638 9,313 9,313 2.2% 317 0 0 $16.40

Atlantic City/Hammon. 395 3,027,650 225,704 225,704 7.5% (40,122) 0 0 $20.19

Bala Cynwyd/Narberth 90 639,608 88,865 89,665 14.0% (2,407) 0 0 $22.57

Berks County 392 3,403,297 139,269 139,269 4.1% (24,106) 0 0 $14.19

Chambersburg/Waynesb. 104 656,682 25,074 25,074 3.8% (6,837) 0 0 $17.79

Conshohocken 80 421,488 10,782 10,782 2.6% (2,951) 0 0 $21.02

Delaware County 668 5,100,547 332,383 334,783 6.6% 274,793 0 0 $22.85

Exton/Whitelands 269 1,960,546 78,098 78,258 4.0% 52,166 0 0 $19.13

Ft Wash/Spring House 140 886,375 50,305 50,305 5.7% (7,402) 0 0 $20.47

Gloucester County 501 2,512,418 78,695 78,695 3.1% 22,400 0 0 $12.82

Harrisburg Area East 606 5,381,913 379,573 379,573 7.1% (98,297) 0 0 $17.28

Harrisburg Area West 399 2,474,269 163,327 163,327 6.6% (28,226) 0 0 $15.74

Horsham/Willow Grove 392 2,737,131 129,570 129,570 4.7% (1,782) 0 0 $17.27

I-81 Corridor 711 5,568,867 162,677 162,677 2.9% 103,147 0 0 $16.31

Independence Hall 105 1,010,428 72,448 72,448 7.2% (5,710) 0 0 $25.94

King of Prussia/Wayn. 108 1,102,912 90,702 92,134 8.4% 8,191 0 0 $19.86

Lancaster County 575 5,016,087 240,874 244,834 4.9% (112,377) 0 0 $16.71

Lebanon 96 562,877 27,499 27,499 4.9% (14,649) 0 0 $13.62

Lehigh Valley 898 7,409,168 585,475 585,475 7.9% (34,890) 0 0 $16.10

Lower Bucks County 615 3,674,169 217,151 221,351 6.0% 54,205 0 0 $18.79

Main Line 133 975,438 66,194 66,194 6.8% (30,217) 0 0 $29.07

Market Street East 129 2,523,710 122,216 189,842 7.5% (40,529) 0 0 $23.10

Market Street West 212 3,144,149 34,450 34,450 1.1% 25,910 0 0 $26.28

Monroe County 233 1,068,389 83,217 83,217 7.8% (24,018) 0 0 $14.29

Navy Yard 23 893,173 3,828 3,828 0.4% (3,828) 0 0 $32.70

Norristown/Valley Fo. 350 2,029,739 122,718 122,718 6.0% (23,248) 0 0 $17.42

North Burlington Cou. 245 1,952,610 116,638 116,638 6.0% 50,241 0 0 $11.06

North Camden County 816 4,894,096 206,655 206,655 4.2% 116,568 0 0 $14.78

North New Castle Cou. 95 826,698 64,848 64,848 7.8% (2,429) 0 0 $22.61

Northeast Philadelph. 618 6,758,028 507,096 507,096 7.5% 74,092 0 0 $20.74


Outer Chester County 170 1,010,123 66,704 66,704 6.6% 25,361 0 0 $17.56

Plymouth Mtg/Blue Be. 155 1,188,727 84,505 84,505 7.1% 23,851 0 0 $21.46

Salem County 73 283,832 6,588 6,588 2.3% 8,414 0 0 $14.57

Schuylkill County 106 645,724 11,800 11,800 1.8% 12,042 0 0 $13.98

South Burlington Cou. 292 1,868,731 199,105 199,105 10.7% (27,173) 0 0 $15.08

South Camden County 480 2,224,129 224,815 224,815 10.1% (47,993) 0 0 $15.41

South New Castle Cou. 222 1,702,376 124,270 133,895 7.9% (30,302) 0 0 $16.41


University City 43 1,204,098 54,918 54,918 4.6% (54,918) 0 0 $42.61

Upper Bucks County 323 1,702,934 65,460 65,460 3.8% (17,016) 0 0 $20.47

Upper Main Line 152 967,906 39,681 39,681 4.1% 372 0 0 $26.07

Vineland/Bridgeton 185 1,207,972 64,692 64,692 5.4% 7,491 0 0 $17.80

West Chester 181 1,629,864 43,710 43,710 2.7% 13,521 0 0 $19.82

West Montgomery Coun. 411 2,543,352 105,857 105,857 4.2% 149,771 0 0 $17.29

West New Castle Coun. 80 648,861 21,209 21,209 3.3% (2,115) 0 0 $19.56

West Philadelphia 94 1,697,273 80,922 80,922 4.8% (10,723) 0 0 $19.21

Wilmington CBD 228 2,297,996 129,019 129,019 5.6% (2,048) 0 0 $19.83

York County 527 4,180,057 182,696 182,696 4.4% (64,287) 0 0 $14.92

Totals 14,592 111,453,259 6,475,512 6,565,715 5.9% 304,255 0 0 $18.70








Figures at a Glance

Total Office Submarket Statistics Year-End 2017



Adams County 114 837,598 39,973 39,973 4.8% 697 0 0 $18.32

Atlantic City/Hammon. 617 6,718,650 565,933 565,933 8.4% (7,203) 14,800 82,000 $20.37


Berks County 682 11,008,417 514,998 522,063 4.7% 137,318 0 0 $16.21

Chambersburg/Waynesb. 155 1,156,386 49,373 49,373 4.3% (9,819) 0 0 $17.66

Conshohocken 169 4,609,177 240,294 272,494 5.9% 23,551 0 0 $32.75

Delaware County 1,055 17,826,350 1,310,128 1,321,558 7.4% 301,446 77,274 40,000 $23.91

Exton/Whitelands 647 14,742,014 694,108 723,308 4.9% 220,064 11,000 11,056 $23.47

Ft Wash/Spring House 269 5,201,073 538,085 545,166 10.5% 276,326 12,646 0 $24.08

Gloucester County 724 5,025,016 231,503 231,503 4.6% 22,325 4,350 19,500 $13.85

Harrisburg Area East 1,023 21,057,714 1,357,637 1,374,731 6.5% (1,817) 0 30,000 $17.91

Harrisburg Area West 737 11,562,541 663,173 666,343 5.8% (91,664) 73,000 40,000 $18.48

Horsham/Willow Grove 650 12,273,647 1,133,279 1,222,759 10.0% 23,413 0 0 $23.26

I-81 Corridor 1,170 15,851,107 792,517 813,516 5.1% 56,058 7,400 60,000 $17.45

Independence Hall 164 9,430,042 1,124,161 1,325,234 14.1% (269,383) 6,000 0 $28.41

King of Prussia/Wayn. 360 14,295,726 1,939,086 1,982,113 13.9% 43,435 111,000 0 $26.49

Lancaster County 957 13,002,354 787,976 792,336 6.1% 106,271 113,000 12,000 $17.46

Lebanon 140 1,082,951 56,477 56,477 5.2% (12,610) 0 0 $12.85

Lehigh Valley 1,585 26,814,607 2,030,413 2,059,437 7.7% 661,047 201,840 287,832 $21.08

Lower Bucks County 1,090 14,951,799 2,120,536 2,150,443 14.4% 68,591 0 27,099 $21.08

Main Line 204 2,445,148 194,031 194,031 7.9% 25,320 100,300 0 $31.40


Market Street West 385 38,998,871 3,038,198 3,276,676 8.4% 403,642 0 1,336,682 $30.21

Monroe County 356 2,224,321 157,170 157,170 7.1% (4,534) 0 18,000 $16.25

Navy Yard 43 1,982,783 36,009 65,239 3.3% 22,387 0 175,000 $39.38


North Burlington Cou. 435 7,937,263 550,869 580,663 7.3% (9,096) 6,800 15,800 $16.02

North Camden County 1,091 11,727,360 1,053,240 1,071,003 9.1% 167,454 74,551 694,752 $17.52

North New Castle Cou. 195 6,247,172 394,855 453,485 7.3% 83,826 154,000 0 $25.09

Northeast Philadelph. 807 13,527,742 1,545,176 1,545,176 11.4% 182,544 0 46,000 $21.55


Outer Chester County 281 2,839,235 198,798 198,798 7.0% (25,309) 0 0 $19.42

Plymouth Mtg/Blue Be. 340 9,031,325 1,680,567 1,775,517 19.7% (76,886) 14,000 0 $26.07

Salem County 97 942,741 31,482 31,482 3.3% 19,710 0 0 $15.91

Schuylkill County 146 1,179,477 22,410 22,410 1.9% 3,557 0 0 $16.12

South Burlington Cou. 550 8,876,315 736,211 751,199 8.5% (24,996) 15,540 38,600 $16.82

South Camden County 693 6,788,592 668,543 674,801 9.9% 3,385 7,000 0 $17.33



University City 86 5,548,787 333,777 333,777 6.0% (262,700) 0 890,000 $40.10

Upper Bucks County 529 4,178,831 281,648 284,848 6.8% 39,742 12,500 0 $20.07

Upper Main Line 287 5,055,147 400,344 432,808 8.6% (67,745) 0 0 $29.01

Vineland/Bridgeton 272 2,164,929 174,485 174,485 8.1% (50,052) 0 0 $18.46

West Chester 356 5,198,169 269,832 269,832 5.2% 28,934 3,200 0 $22.79

West Montgomery Coun. 675 7,548,748 627,055 707,836 9.4% (195,144) 0 15,047 $18.08

West New Castle Coun. 202 4,772,368 284,994 284,994 6.0% 40,589 148,437 104,240 $25.46

West Philadelphia 118 2,346,308 134,826 134,826 5.7% (12,564) 0 0 $20.45

Wilmington CBD 360 13,909,744 1,310,079 1,313,357 9.4% 194,600 0 0 $26.19

York County 749 8,400,628 490,111 497,561 5.9% 18,829 0 0 $17.74

Totals 23,866 425,706,145 33,851,618 35,217,136 8.3% 2,251,943 1,168,638 3,943,608 $22.94








Figures at a Glance

Class A Market Statistics Year-End 2017



CBD 62 36,702,155 3,359,773 3,784,455 10.3% (319,868) 0 1,336,682 $31.17

Suburban 939 97,032,297 9,408,182 9,998,012 10.3% 813,162 719,668 2,137,584 $25.99

Totals 1,001 133,734,452 12,767,955 13,782,467 10.3% 493,294 719,668 3,474,266 $27.37


Class B Market Statistics Year-End 2017



CBD 250 17,803,679 1,296,215 1,326,216 7.4% 506,224 6,000 0 $25.75

Suburban 8,023 162,714,755 13,311,936 13,542,738 8.3% 948,170 442,970 469,342 $20.59

Totals 8,273 180,518,434 14,608,151 14,868,954 8.2% 1,454,394 448,970 469,342 $21.01


Class C Market Statistics Year-End 2017



CBD 446 6,678,287 229,114 296,740 4.4% (20,329) 0 0 $24.27

Suburban 14,146 104,774,972 6,246,398 6,268,975 6.0% 324,584 0 0 $18.46

Totals 14,592 111,453,259 6,475,512 6,565,715 5.9% 304,255 0 0 $18.70


Class A & B Market Statistics Year-End 2017



CBD 312 54,505,834 4,655,988 5,110,671 9.4% 186,356 6,000 1,336,682 $29.77

Suburban 8,962 259,747,052 22,720,118 23,540,750 9.1% 1,761,332 1,162,638 2,606,926 $22.78

Totals 9,274 314,252,886 27,376,106 28,651,421 9.1% 1,947,688 1,168,638 3,943,608 $23.94


Total Office Market Statistics Year-End 2017



CBD 758 61,184,121 4,885,102 5,407,411 8.8% 166,027 6,000 1,336,682 $29.46

Suburban 23,108 364,522,024 28,966,516 29,809,725 8.2% 2,085,916 1,162,638 2,606,926 $21.86

Totals 23,866 425,706,145 33,851,618 35,217,136 8.3% 2,251,943 1,168,638 3,943,608 $22.94












Figures at a Glance

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Historical Rental RatesBased on Full-Service Equivalent Rental Rates


Vacancy by Available Space Type Vacancy by ClassPercent of All Vacant Space in Direct vs. Sublet Percent of All Vacant Space by Class


U.S. Rental Rate Comparison Future Space AvailableBased on Full-Service Equivalent Rental Rates Space Scheduled to be Available for Occupancy*

Source: CoStar Property® * Includes Under Construction Spaces Source: CoStar Property®

Philadelphia United States Philadelphia United States

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

1997 3q 1999 3q 2001 3q 2003 3q 2005 3q 2007 3q 2009 3q 2011 3q 2013 3q 2015 3q 2017 3q

A B C Total Market

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

2015 3q 2016 3q 2017 3q


96%

4%

Direct Sublet

95%

5%

Direct Sublet

39%42%

19%


3.17

0.710.60

1.34

0.00 0.000.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

2018 1q 2018 3q 2019 1q

13%

45%

42%


Leasing Activity






Leasing Activity


* Renewal

Building Submarket SF Qtr Tenant Name Tenant Rep Company Landlord Rep Company

1 802 Delaware Ave* Wilmington CBD 240,780 2nd Capital One N/A Newmark Knight Frank

2 1101 Market Market Street East 237,677 4th Je�erson Savills Studley JLL

3 300 N Wake�eld Dr* South New Castle County 115,664 1st Comcast N/A Newmark Knight Frank

4 1 Drexel Plaza University City 107,669 4th Spark Therapeutics, Inc. N/A Brandywine Realty Trust

5 1735 Market Market Street West 88,713 2nd N/A N/A Newmark Knight Frank

6 Woodlands I Plymouth Mtg/Blue Bell 86,621 1st Cotiviti N/A JLL

7 1100 Virginia Dr Ft Wash/Spring House 76,475 1st N/A N/A JLL

8 Hercules Plaza* Wilmington CBD 76,448 4th The Cond? Nast Publications N/A N/A

9 Silver Lake Executive Campus - Bldg A Lower Bucks County 75,000 4th N/A N/A Newmark Knight Frank

10 Chesterbrook Financial Center King of Prussia/Wayne 74,122 2nd J.G. Wentworth N/A JLL

11 507 Prudential Rd Horsham/Willow Grove 72,381 3rd Bayview/Lakeview Loan Servicing Avison Young Workspace Property Trust

12 The Pinnacle West Montgomery County 71,290 2nd SICOM N/A JLL

13 Express Times Lehigh Valley 65,340 3rd N/A N/A ALT Realty LLC.

14 211 S Gulph Rd King of Prussia/Wayne 62,000 4th N/A N/A The Flynn Company

15 407 Silverside Rd North New Castle County 60,000 4th N/A N/A DSM Commercial

16 300 Corporate Center Dr Harrisburg Area West 57,764 1st Pennsylvania Health & Wellness, Inc. N/A Cushman & Wake�eld

17 Churchman’s Corporate Center South New Castle County 57,756 4th N/A N/A Pettinaro Management LLC.

18 2500 Monroe Blvd* Norristown/Valley Forge 57,055 4th Healthcare Solutions N/A N/A

19 Three City Center Lehigh Valley 54,634 2nd Lehigh Valley Hospital N/A City Center Lehigh Valley

20 The Corporate Plaza Wilmington CBD 52,290 2nd Capital One N/A Newmark Knight Frank

21 Centre Point West Montgomery County 52,000 2nd Siemens N/A The Flynn Company

22 1100 Ludlow St Market Street East 50,514 4th N/A N/A SSH Real Estate

23 Brandywine Six Delaware County 47,286 2nd N/A N/A The Henderson Group

24 Apex Fort Washington - Bldg 601 Ft Wash/Spring House 45,484 3rd Softerware N/A JLL

25 Horsham Corp Ctr 2 Intersearch Horsham/Willow Grove 44,023 1st C3i Solutions N/A Newmark Knight Frank

26 518 Township Line Rd Plymouth Mtg/Blue Bell 42,450 2nd N/A N/A Newmark Knight Frank

27 Equus Capital Partners Headquarters Delaware County 40,000 1st Equus Capital Partners N/A Equus Capital Partners, Ltd

28 Chesterbrook King of Prussia/Wayne 36,946 4th Aclaris Therapeutics Newmark Knight Frank JLL

29 Wyomissing Corporate Campus - Bldg A Berks County 36,000 1st Glen-Gery Corp N/A NAI Keystone Commercial & Industria

30 Hercules Plaza Wilmington CBD 35,573 4th N/A N/A McConnell Johnson LLC

31 1000 Justison St* South New Castle County 34,000 1st Phillips & Cohen Associates N/A Pettinaro Management LLC

32 300 Four Falls Corporate Center Conshohocken 33,538 2nd N/A N/A Maguire Hayden Real Estate Company

33 Wyomissing Corporate Campus - Bldg D Berks County 33,500 1st N/A N/A NAI Keystone Commercial & Industria

34 1500 Spring Garden Market Street West 32,771 2nd Hussian College N/A CBRE

35 71 W Park Ave Vineland/Bridgeton 32,000 4th N/A N/A Vineland Construction Co.

36 1700 Market St Market Street West 31,214 1st Tierney N/A CBRE

37 1025 Briggs Rd South Burlington County 30,731 2nd Amdocs N/A Somerset Properties, Inc.

38 Cooper River Square East North Camden County 30,000 1st Virtual Medical Savills Studley WHPounds Commercial Real Estate

39 One Collins Drive Salem County 29,641 1st Clement Pappas & Co., Inc. N/A Jackson Cross Partners LLC

40 1100 Virginia Dr Ft Wash/Spring House 29,076 2nd N/A N/A JLL

Select Top O�ce Leases Based on Leased Square Footage For Deals Signed in 2017






Sales Activity

The Optimist Sales Index Average of Two Highest Price/SF's and Two Lowest Cap Rates Per Quarter

Source: CoStar COMPS®

Sales Volume & Price Sales Analysis by Building SizeBased on Office Building Sales of 15,000 SF and Larger Based on Office Building Sales From Oct. 2016 - Sept. 2017

Bldg Size # RBA $ Volume Price/SF Cap Rate

< 50,000 SF 243 4,192,961 $540,219,737 128.84$ 8.04%

50K-249K SF

77 8,533,103 $935,065,784 109.58$ 8.70%

250K-499K SF

6 2,255,416 $299,325,100 132.71$ 8.55%

>500K SF 6 5,892,280 $838,578,028 142.32$ 6.27%

Source: CoStar COMPS® Source: CoStar COMPS®

U.S. Price/SF Comparison U.S. Cap Rate ComparisonBased on Office Building Sales of 15,000 SF and Larger Based on Office Building Sales of 15,000 SF and Larger

Source: CoStar COMPS® Source: CoStar COMPS®

$80

$130

$180

$230

$280

$330

2014 1q 2015 1q 2016 1q 2017 1q

Dol

lars

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SF

Philadelphia US

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

2014 1q 2015 1q 2016 1q 2017 1q

Millions

of

Sale

s V

olu

me D

ollars

$0

$50

$100

$150

$200

$250

Price

/SF

Sales Volume Price/SF

0.0%

1.0%

2.0%

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4.0%

5.0%

6.0%

7.0%

8.0%

2014 4q 2015 4q 2016 4q

Cap R

ate

Perc

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$220

$270

$320

$370

$420

$470

$520

$570

Dolla

rs/SF

Cap Rate Price/SF

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

11.0%

2014 1q 2015 1q 2016 1q 2017 1q

Cap R

ate

Perc

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ge

Philadelphia US






Philadelphia Office MarketMarket Highlights – Class “A, B & C”

Sales Activity

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A t l a n t i c C i t y / H a m m o n t o n M a r k e t

Deliveries, Absorption & Vacancy Historical Analysis, All Classes


Vacant Space Quoted Rental RatesHistorical Analysis, All Classes Historical Analysis, All Classes


Net QuotedPeriod # Bldgs Total RBA Vacant SF Vacancy % Absorption # Bldgs Total RBA # Bldgs Total RBA Rates

2017 4q 617 6,718,650 565,933 8.4% 90,410 0 0 2 82,000 $20.37

2017 3q 617 6,718,650 656,343 9.8% (45,977) 1 14,800 2 82,000 $20.98

2017 2q 616 6,703,850 595,566 8.9% (39,913) 0 0 2 30,800 $20.80

2017 1q 616 6,703,850 555,653 8.3% (11,723) 0 0 2 30,800 $20.85

2016 4q 616 6,703,850 543,930 8.1% (6,608) 0 0 2 30,800 $21.59

2016 3q 616 6,703,850 537,322 8.0% (28,315) 0 0 2 30,800 $21.49

2016 2q 617 6,707,529 512,686 7.6% 72,739 0 0 0 0 $21.66

2016 1q 617 6,707,529 585,425 8.7% 24,544 1 5,016 0 0 $21.50

2015 4q 616 6,702,513 604,953 9.0% 46,060 0 0 1 5,016 $21.25

2015 3q 616 6,702,513 651,013 9.7% 51,340 1 5,000 1 5,016 $21.19

2015 2q 616 6,712,803 712,643 10.6% 9,895 0 0 2 10,016 $20.62

2015 1q 616 6,712,803 722,538 10.8% (20,216) 1 4,600 1 5,000 $21.03

2014 4q 615 6,708,203 697,722 10.4% (28,914) 0 0 2 9,600 $21.30

2014 3q 616 6,711,903 672,508 10.0% (32,600) 0 0 1 4,600 $21.18

2014 2q 616 6,711,903 639,908 9.5% (14,246) 0 0 1 4,600 $21.22

2014 1q 616 6,711,903 625,662 9.3% 18,344 0 0 1 4,600 $21.41


UC InventoryDelivered InventoryExisting Inventory Vacancy

(0.060)

(0.040)

(0.020)

0.000

0.020

0.040

0.060

0.080

0.100

2014 1q 2014 2q 2014 3q 2014 4q 2015 1q 2015 2q 2015 3q 2015 4q 2016 1q 2016 2q 2016 3q 2016 4q 2017 1q 2017 2q 2017 3q 2017 4q

Millions

SF

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

Perce

nt V

aca

nt

Delivered SF Absorption SF Vacancy

$19.50

$20.00

$20.50

$21.00

$21.50

$22.00

2016 1q 2016 3q 2017 1q 2017 3q

Dollars

/SF/Y

ear

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

2016 1q 2016 3q 2017 1q 2017 3q

Millions

SF

Direct SF Sublet SF







C h a m b e r s b u r g / W a y n e s b o r o M a r k e t






2017 4q 155 1,156,386 49,373 4.3% 11 0 0 0 0 $17.66

2017 3q 155 1,156,386 49,384 4.3% 5,486 0 0 0 0 $17.00

2017 2q 155 1,156,386 54,870 4.7% (19,127) 0 0 0 0 $17.38

2017 1q 155 1,156,386 35,743 3.1% 3,811 0 0 0 0 $17.45

2016 4q 155 1,156,386 39,554 3.4% 7,840 0 0 0 0 $16.66

2016 3q 155 1,156,386 47,394 4.1% 2,110 0 0 0 0 $17.54

2016 2q 155 1,156,386 49,504 4.3% 4,670 0 0 0 0 $17.18

2016 1q 155 1,156,386 54,174 4.7% (5,613) 0 0 0 0 $17.56

2015 4q 155 1,156,386 48,561 4.2% (3,319) 0 0 0 0 $16.87

2015 3q 155 1,156,386 45,242 3.9% 1,066 0 0 0 0 $15.94

2015 2q 155 1,156,386 46,308 4.0% 15,128 1 10,000 0 0 $17.14

2015 1q 153 1,136,386 41,436 3.6% 3,085 0 0 2 20,000 $16.00

2014 4q 153 1,136,386 44,521 3.9% (6,108) 0 0 2 20,000 $16.09

2014 3q 153 1,136,386 38,413 3.4% (1,235) 0 0 2 20,000 $15.13

2014 2q 153 1,136,386 37,178 3.3% 9,274 0 0 0 0 $15.20

2014 1q 153 1,136,386 46,452 4.1% 12,490 0 0 0 0 $15.08



(0.025)

(0.020)

(0.015)

(0.010)

(0.005)

0.000

0.005

0.010

0.015

0.020


Millions

SF

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

Perce

nt V

aca

nt


$16.00

$16.20

$16.40

$16.60

$16.80

$17.00

$17.20

$17.40

$17.60

$17.80

2016 1q 2016 3q 2017 1q 2017 3q

Dollars

/SF/Y

ear

0.00

0.01

0.02

0.03

0.04

0.05

0.06

2016 1q 2016 3q 2017 1q 2017 3q

Millions

SF

Direct SF Sublet SF







D e l a w a r e M a r k e t






2017 4q 1,224 34,167,367 2,795,784 8.2% 195,906 1 154,000 3 104,240 $24.69

2017 3q 1,223 34,013,367 2,837,690 8.3% 91,393 1 148,437 4 258,240 $24.95

2017 2q 1,224 33,897,652 2,813,368 8.3% 19,866 0 0 5 406,677 $25.29

2017 1q 1,224 33,897,652 2,833,234 8.4% 57,059 0 0 3 304,677 $24.61

2016 4q 1,229 34,028,955 3,021,596 8.9% 51,426 0 0 3 304,677 $24.17

2016 3q 1,229 34,028,955 3,073,022 9.0% 70,662 1 19,028 3 304,677 $24.17

2016 2q 1,228 34,009,927 3,124,656 9.2% 67,573 0 0 3 169,705 $24.16

2016 1q 1,228 34,009,927 3,192,229 9.4% 116,269 2 26,300 3 169,705 $23.89

2015 4q 1,226 33,983,627 3,282,198 9.7% 228,365 0 0 4 193,765 $23.74

2015 3q 1,226 33,983,627 3,510,563 10.3% (18,262) 0 0 2 26,300 $23.77

2015 2q 1,227 34,033,627 3,542,301 10.4% 196,047 0 0 2 26,300 $23.31

2015 1q 1,227 34,033,627 3,738,348 11.0% (30,554) 0 0 1 17,500 $23.59

2014 4q 1,228 34,092,821 3,766,988 11.0% (398,548) 0 0 0 0 $23.30

2014 3q 1,228 34,092,821 3,368,440 9.9% 19,937 0 0 0 0 $23.48

2014 2q 1,228 34,092,821 3,388,377 9.9% 356,234 1 20,280 0 0 $23.40

2014 1q 1,227 34,072,541 3,724,331 10.9% 78,013 1 12,000 1 20,280 $23.12



(0.500)

(0.400)

(0.300)

(0.200)

(0.100)

0.000

0.100

0.200

0.300

0.400


Millions

SF

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

Perce

nt V

aca

nt


$23.00

$23.50

$24.00

$24.50

$25.00

$25.50

2016 1q 2016 3q 2017 1q 2017 3q

Dollars

/SF/Y

ear

2.40

2.50

2.60

2.70

2.80

2.90

3.00

3.10

3.20

3.30

2016 1q 2016 3q 2017 1q 2017 3q

Millions

SF

Direct SF Sublet SF







G e t t y s b u r g M a r k e t






2017 4q 114 837,598 39,973 4.8% 5,463 0 0 0 0 $18.32

2017 3q 114 837,598 45,436 5.4% (10,746) 0 0 0 0 $17.07

2017 2q 114 837,598 34,690 4.1% 9,320 0 0 0 0 $16.70

2017 1q 114 837,598 44,010 5.3% (3,340) 0 0 0 0 $17.32

2016 4q 114 837,598 40,670 4.9% 1,839 0 0 0 0 $13.70

2016 3q 114 837,598 42,509 5.1% 0 0 0 0 0 $13.21

2016 2q 114 837,598 42,509 5.1% 3,072 0 0 0 0 $13.46

2016 1q 114 837,598 45,581 5.4% (8,601) 0 0 0 0 $13.62

2015 4q 114 837,598 36,980 4.4% 2,224 0 0 0 0 $14.22

2015 3q 114 837,598 39,204 4.7% (2,224) 0 0 0 0 $14.80

2015 2q 114 837,598 36,980 4.4% 1,900 0 0 0 0 $12.40

2015 1q 114 837,598 38,880 4.6% 1,290 0 0 0 0 $12.46

2014 4q 114 837,598 40,170 4.8% 2,800 0 0 0 0 $12.38

2014 3q 114 837,598 42,970 5.1% 1,620 0 0 0 0 $12.44

2014 2q 114 837,598 44,590 5.3% (3,261) 0 0 0 0 $12.44

2014 1q 114 837,598 41,329 4.9% 2,234 0 0 0 0 $12.43



(0.015)

(0.010)

(0.005)

0.000

0.005

0.010

0.015


Millions

SF

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

Perce

nt V

aca

nt


$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

$14.00

$16.00

$18.00

$20.00

2016 1q 2016 3q 2017 1q 2017 3q

Dollars

/SF/Y

ear

0.00

0.01

0.01

0.02

0.02

0.03

0.03

0.04

0.04

0.05

0.05

2016 1q 2016 3q 2017 1q 2017 3q

Millions

SF

Direct SF Sublet SF







H a r r i s b u r g / C a r l i s l e M a r k e t






2017 4q 1,760 32,620,255 2,041,074 6.3% (135,877) 0 0 2 70,000 $18.12

2017 3q 1,760 32,620,255 1,905,197 5.8% 25,603 0 0 2 70,000 $17.96

2017 2q 1,760 32,620,255 1,930,800 5.9% (6,036) 1 13,000 1 40,000 $17.92

2017 1q 1,760 32,837,902 2,142,411 6.5% 22,829 1 60,000 2 53,000 $17.92

2016 4q 1,759 32,777,902 2,105,240 6.4% (36,277) 1 20,000 2 73,000 $17.84

2016 3q 1,758 32,757,902 2,048,963 6.3% 340,502 1 129,000 3 93,000 $17.54

2016 2q 1,756 32,582,574 2,214,137 6.8% 215,846 1 129,000 5 268,328 $17.46

2016 1q 1,755 32,453,574 2,300,983 7.1% 159,073 0 0 5 384,328 $17.52

2015 4q 1,755 32,453,574 2,460,056 7.6% 57,142 1 82,000 3 304,328 $17.55

2015 3q 1,754 32,371,574 2,435,198 7.5% 143,983 1 32,500 3 340,000 $17.49

2015 2q 1,753 32,339,074 2,546,681 7.9% 84,496 1 4,827 4 372,500 $17.37

2015 1q 1,752 32,334,247 2,626,350 8.1% 406,824 3 330,559 3 119,327 $17.46

2014 4q 1,749 32,003,688 2,702,615 8.4% (17,900) 0 0 6 449,886 $17.55

2014 3q 1,749 32,003,688 2,684,715 8.4% 92,426 0 0 5 367,886 $17.39

2014 2q 1,750 32,024,338 2,797,791 8.7% (70,462) 0 0 4 363,059 $17.31

2014 1q 1,749 32,022,238 2,725,229 8.5% (251,257) 0 0 3 324,659 $16.88



(0.300)

(0.200)

(0.100)

0.000

0.100

0.200

0.300

0.400

0.500


Millions

SF

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

Perce

nt V

aca

nt


$17.00

$17.20

$17.40

$17.60

$17.80

$18.00

$18.20

2016 1q 2016 3q 2017 1q 2017 3q

Dollars

/SF/Y

ear

0.00

0.50

1.00

1.50

2.00

2.50

2016 1q 2016 3q 2017 1q 2017 3q

Millions

SF

Direct SF Sublet SF







I - 8 1 C o r r i d o r M a r k e t






2017 4q 1,170 15,851,107 813,516 5.1% (44,258) 0 0 2 60,000 $17.45

2017 3q 1,170 15,851,107 769,258 4.9% 44,263 0 0 2 60,000 $15.46

2017 2q 1,170 15,851,107 813,521 5.1% 45,230 1 7,400 2 60,000 $14.91

2017 1q 1,169 15,843,707 851,351 5.4% 10,823 0 0 3 67,400 $15.16

2016 4q 1,169 15,843,707 862,174 5.4% 173,146 0 0 3 67,400 $14.98

2016 3q 1,169 15,843,707 1,035,320 6.5% 86,634 0 0 3 67,400 $14.74

2016 2q 1,169 15,843,707 1,121,954 7.1% 411,828 0 0 1 7,400 $13.80

2016 1q 1,169 15,843,707 1,533,782 9.7% (3,458) 0 0 0 0 $13.83

2015 4q 1,169 15,843,707 1,530,324 9.7% (50,455) 0 0 0 0 $14.06

2015 3q 1,169 15,843,707 1,479,869 9.3% 18,947 0 0 0 0 $13.87

2015 2q 1,169 15,843,707 1,498,816 9.5% (46,289) 1 22,600 0 0 $13.81

2015 1q 1,168 15,821,107 1,429,927 9.0% (56,022) 0 0 1 22,600 $13.31

2014 4q 1,168 15,821,107 1,373,905 8.7% 753 0 0 1 22,600 $13.47

2014 3q 1,168 15,821,107 1,374,658 8.7% 4,862 0 0 1 22,600 $13.54

2014 2q 1,168 15,821,107 1,379,520 8.7% 64,226 1 40,000 1 22,600 $13.11

2014 1q 1,167 15,781,107 1,403,746 8.9% 62,013 0 0 2 62,600 $13.49



(0.100)

0.000

0.100

0.200

0.300

0.400

0.500


Millions

SF

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

Perce

nt V

aca

nt


$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

$14.00

$16.00

$18.00

$20.00

2016 1q 2016 3q 2017 1q 2017 3q

Dollars

/SF/Y

ear

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

2016 1q 2016 3q 2017 1q 2017 3q

Millions

SF

Direct SF Sublet SF







L a n c a s t e r M a r k e t






2017 4q 957 13,002,354 792,336 6.1% (13,391) 0 0 1 12,000 $17.46

2017 3q 957 13,002,354 778,945 6.0% 2,462 0 0 1 12,000 $17.20

2017 2q 957 13,002,354 781,407 6.0% 101,013 2 113,000 0 0 $17.13

2017 1q 955 12,889,354 769,420 6.0% 16,187 0 0 2 113,000 $16.63

2016 4q 955 12,889,354 785,607 6.1% (98,457) 0 0 2 113,000 $16.42

2016 3q 955 12,889,354 687,150 5.3% 42,977 0 0 2 113,000 $16.89

2016 2q 955 12,889,354 730,127 5.7% 82,911 0 0 2 113,000 $16.79

2016 1q 955 12,889,354 813,038 6.3% 13,484 1 12,000 0 0 $16.36

2015 4q 954 12,877,354 814,522 6.3% (31,169) 0 0 1 12,000 $16.11

2015 3q 954 12,877,354 783,353 6.1% 19,337 0 0 1 12,000 $16.10

2015 2q 954 12,877,354 802,690 6.2% (36,666) 0 0 0 0 $16.08

2015 1q 954 12,877,354 766,024 5.9% 28,615 0 0 0 0 $15.36

2014 4q 954 12,877,354 794,639 6.2% (29,101) 0 0 0 0 $15.67

2014 3q 954 12,877,354 765,538 5.9% 20,207 0 0 0 0 $15.44

2014 2q 954 12,877,354 785,745 6.1% (44,492) 0 0 0 0 $15.13

2014 1q 955 12,889,854 753,753 5.8% 51,578 1 9,952 0 0 $15.26



(0.150)

(0.100)

(0.050)

0.000

0.050

0.100

0.150


Millions

SF

4.8%

5.0%

5.2%

5.4%

5.6%

5.8%

6.0%

6.2%

6.4%

Perce

nt V

aca

nt


$15.80

$16.00

$16.20

$16.40

$16.60

$16.80

$17.00

$17.20

$17.40

$17.60

2016 1q 2016 3q 2017 1q 2017 3q

Dollars

/SF/Y

ear

0.60

0.65

0.70

0.75

0.80

0.85

2016 1q 2016 3q 2017 1q 2017 3q

Millions

SF

Direct SF Sublet SF







L e b a n o n M a r k e t






2017 4q 140 1,082,951 56,477 5.2% 4,195 0 0 0 0 $12.85

2017 3q 140 1,082,951 60,672 5.6% (10,935) 0 0 0 0 $12.80

2017 2q 140 1,082,951 49,737 4.6% (7,200) 0 0 0 0 $14.10

2017 1q 140 1,082,951 42,537 3.9% 1,330 0 0 0 0 $10.61

2016 4q 140 1,082,951 43,867 4.1% (30,692) 0 0 0 0 $10.25

2016 3q 140 1,082,951 13,175 1.2% 4,201 0 0 0 0 $10.25

2016 2q 140 1,082,951 17,376 1.6% 18,288 0 0 0 0 $13.48

2016 1q 140 1,082,951 35,664 3.3% 550 0 0 0 0 $11.87

2015 4q 140 1,082,951 36,214 3.3% 52,643 1 54,234 0 0 $11.99

2015 3q 139 1,028,717 34,623 3.4% 4,200 0 0 1 54,234 $11.81

2015 2q 139 1,028,717 38,823 3.8% 7,275 0 0 1 54,234 $15.25

2015 1q 138 1,021,542 38,923 3.8% 6,608 0 0 2 61,409 $12.26

2014 4q 138 1,021,542 45,531 4.5% (1,000) 0 0 2 61,409 $12.08

2014 3q 138 1,021,542 44,531 4.4% (9,217) 0 0 1 7,175 $11.93

2014 2q 138 1,021,542 35,314 3.5% (3,087) 0 0 0 0 $15.14

2014 1q 138 1,021,542 32,227 3.2% 0 0 0 0 0 $12.09



(0.040)

(0.030)

(0.020)

(0.010)

0.000

0.010

0.020

0.030

0.040

0.050

0.060


Millions

SF

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

Perce

nt V

aca

nt


$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

$14.00

$16.00

2016 1q 2016 3q 2017 1q 2017 3q

Dollars

/SF/Y

ear

0.00

0.01

0.02

0.03

0.04

0.05

0.06

0.07

2016 1q 2016 3q 2017 1q 2017 3q

Millions

SF

Direct SF Sublet SF







L e h i g h V a l l e y M a r k e t






2017 4q 1,585 26,814,607 2,059,437 7.7% (103,225) 0 0 3 287,832 $21.08

2017 3q 1,585 26,814,607 1,956,212 7.3% 370,292 2 115,000 3 287,832 $20.56

2017 2q 1,583 26,699,607 2,211,504 8.3% 300,752 2 78,565 4 384,832 $20.60

2017 1q 1,581 26,621,042 2,433,691 9.1% 93,228 1 8,275 6 463,397 $20.61

2016 4q 1,580 26,612,767 2,518,644 9.5% (56,680) 1 66,073 6 343,840 $20.39

2016 3q 1,579 26,546,694 2,395,891 9.0% 42,490 0 0 5 246,913 $20.31

2016 2q 1,579 26,546,694 2,438,381 9.2% 247,153 1 290,265 4 171,913 $20.60

2016 1q 1,578 26,256,429 2,395,269 9.1% 74,462 0 0 2 356,338 $20.54

2015 4q 1,579 26,260,706 2,474,008 9.4% 49,792 0 0 2 356,338 $20.32

2015 3q 1,579 26,260,706 2,523,800 9.6% 68,539 0 0 2 356,338 $19.75

2015 2q 1,579 26,260,706 2,592,339 9.9% 232,183 3 225,124 1 290,265 $19.99

2015 1q 1,576 26,035,582 2,599,398 10.0% 222,846 0 0 3 225,124 $20.06

2014 4q 1,576 26,035,582 2,822,244 10.8% (1,161) 1 4,560 3 225,124 $20.07

2014 3q 1,575 26,031,022 2,816,523 10.8% (20,753) 0 0 3 223,860 $19.84

2014 2q 1,575 26,031,022 2,795,770 10.7% (48,359) 1 296,025 2 214,560 $19.91

2014 1q 1,574 25,734,997 2,451,386 9.5% 105,984 2 73,033 2 300,585 $20.06



(0.200)

(0.100)

0.000

0.100

0.200

0.300

0.400


Millions

SF

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

Perce

nt V

aca

nt


$19.80

$20.00

$20.20

$20.40

$20.60

$20.80

$21.00

$21.20

2016 1q 2016 3q 2017 1q 2017 3q

Dollars

/SF/Y

ear

0.00

0.50

1.00

1.50

2.00

2.50

3.00

2016 1q 2016 3q 2017 1q 2017 3q

Millions

SF

Direct SF Sublet SF







M o n r o e C o u n t y M a r k e t






2017 4q 356 2,224,321 157,170 7.1% 32,704 0 0 1 18,000 $16.25

2017 3q 356 2,224,321 189,874 8.5% (43,761) 0 0 1 18,000 $16.43

2017 2q 356 2,224,321 146,113 6.6% 3,054 0 0 1 18,000 $16.68

2017 1q 356 2,224,321 149,167 6.7% 3,469 0 0 1 18,000 $15.97

2016 4q 356 2,224,321 152,636 6.9% (24,248) 1 896 1 18,000 $17.45

2016 3q 355 2,223,425 127,492 5.7% 1,964 0 0 2 18,896 $16.80

2016 2q 355 2,223,425 129,456 5.8% 17,224 0 0 2 18,896 $16.99

2016 1q 354 2,193,425 116,680 5.3% (1,216) 0 0 2 48,000 $15.54

2015 4q 354 2,193,425 115,464 5.3% 4,526 0 0 2 48,000 $15.06

2015 3q 354 2,193,425 119,990 5.5% 15,662 0 0 2 48,000 $14.72

2015 2q 354 2,193,425 135,652 6.2% (5,356) 0 0 1 18,000 $15.05

2015 1q 354 2,193,425 130,296 5.9% 16,372 0 0 0 0 $14.57

2014 4q 354 2,193,425 146,668 6.7% 4,282 0 0 0 0 $15.10

2014 3q 354 2,193,425 150,950 6.9% (10,004) 0 0 0 0 $15.19

2014 2q 354 2,193,425 140,946 6.4% 7,646 0 0 0 0 $15.71

2014 1q 354 2,193,425 148,592 6.8% 20,550 0 0 0 0 $15.26



(0.050)

(0.040)

(0.030)

(0.020)

(0.010)

0.000

0.010

0.020

0.030

0.040


Millions

SF

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

Perce

nt V

aca

nt


$14.50

$15.00

$15.50

$16.00

$16.50

$17.00

$17.50

$18.00

2016 1q 2016 3q 2017 1q 2017 3q

Dollars

/SF/Y

ear

0.00

0.02

0.04

0.06

0.08

0.10

0.12

0.14

0.16

0.18

0.20

2016 1q 2016 3q 2017 1q 2017 3q

Millions

SF

Direct SF Sublet SF







P h i l a d e l p h i a C B D M a r k e t






2017 4q 758 61,184,121 5,407,411 8.8% (367,020) 0 0 1 1,336,682 $29.46

2017 3q 758 61,184,121 5,040,391 8.2% 201,295 0 0 1 1,336,682 $29.50

2017 2q 758 61,184,121 5,241,686 8.6% 33,196 1 6,000 1 1,336,682 $30.02

2017 1q 757 61,178,121 5,268,882 8.6% 298,556 0 0 2 1,342,682 $30.00

2016 4q 757 61,178,121 5,567,438 9.1% 336,773 0 0 2 1,342,682 $29.16

2016 3q 757 61,178,121 5,904,211 9.7% 251,986 1 622,000 1 1,336,682 $29.20

2016 2q 756 60,556,121 5,534,197 9.1% 71,817 0 0 2 1,958,682 $28.71

2016 1q 756 60,556,121 5,606,014 9.3% (189,785) 0 0 2 1,958,682 $28.34

2015 4q 756 60,556,121 5,416,229 8.9% (385,354) 0 0 2 1,958,682 $28.50

2015 3q 757 60,676,472 5,151,226 8.5% (277,851) 0 0 2 1,958,682 $28.09

2015 2q 757 60,676,472 4,873,375 8.0% 261,530 0 0 2 1,958,682 $27.90

2015 1q 758 60,716,472 5,174,905 8.5% (163,150) 0 0 2 1,958,682 $27.66

2014 4q 759 60,721,458 5,016,741 8.3% 854,898 0 0 2 1,958,682 $27.56

2014 3q 758 60,172,128 5,322,309 8.8% 216,167 0 0 2 1,171,330 $26.92

2014 2q 759 60,197,950 5,564,298 9.2% 139,761 0 0 2 1,171,330 $26.61

2014 1q 760 60,203,950 5,710,059 9.5% 25,635 0 0 1 549,330 $25.09



(0.600)

(0.400)

(0.200)

0.000

0.200

0.400

0.600

0.800

1.000


Millions

SF

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

Perce

nt V

aca

nt


$27.50

$28.00

$28.50

$29.00

$29.50

$30.00

$30.50

2016 1q 2016 3q 2017 1q 2017 3q

Dollars

/SF/Y

ear

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

2016 1q 2016 3q 2017 1q 2017 3q

Millions

SF

Direct SF Sublet SF







P h i l a d e l p h i a N o n - C B D M a r k e t






2017 4q 2,027 34,059,539 3,010,452 8.8% (96,680) 0 0 5 1,111,000 $23.76

2017 3q 2,027 34,059,539 2,913,772 8.6% (146,745) 0 0 5 1,111,000 $24.20

2017 2q 2,027 34,059,539 2,767,027 8.1% (194,966) 0 0 5 1,111,000 $23.58

2017 1q 2,027 34,059,539 2,572,061 7.6% 303,549 0 0 3 570,000 $23.38

2016 4q 2,027 34,059,539 2,875,610 8.4% 79,068 1 47,400 3 570,000 $22.81

2016 3q 2,026 34,012,139 2,907,278 8.5% 147,760 1 91,971 3 442,400 $22.63

2016 2q 2,025 33,920,168 2,963,067 8.7% (44,148) 0 0 3 489,371 $22.34

2016 1q 2,026 33,933,809 2,932,560 8.6% (326,685) 0 0 1 91,971 $22.43

2015 4q 2,028 33,956,104 2,628,170 7.7% 120,397 0 0 1 91,971 $22.56

2015 3q 2,028 33,956,104 2,748,567 8.1% 67,583 1 3,289 1 91,971 $22.61

2015 2q 2,027 33,952,815 2,812,861 8.3% (61,024) 2 25,813 1 3,289 $22.51

2015 1q 2,026 33,943,642 2,742,664 8.1% (13,410) 1 80,050 3 29,102 $22.45

2014 4q 2,026 33,876,792 2,662,404 7.9% 249,672 1 340,000 4 109,152 $22.21

2014 3q 2,025 33,536,792 2,572,076 7.7% 76,993 0 0 4 445,863 $21.65

2014 2q 2,025 33,536,792 2,649,069 7.9% 88,018 0 0 3 443,663 $21.45

2014 1q 2,025 33,536,792 2,737,087 8.2% 148,545 0 0 3 443,663 $21.03



(0.400)

(0.300)

(0.200)

(0.100)

0.000

0.100

0.200

0.300

0.400


Millions

SF

6.5%

7.0%

7.5%

8.0%

8.5%

9.0%

Perce

nt V

aca

nt


$21.00

$21.50

$22.00

$22.50

$23.00

$23.50

$24.00

$24.50

2016 1q 2016 3q 2017 1q 2017 3q

Dollars

/SF/Y

ear

2.30

2.40

2.50

2.60

2.70

2.80

2.90

3.00

3.10

2016 1q 2016 3q 2017 1q 2017 3q

Millions

SF

Direct SF Sublet SF







R e a d i n g M a r k e t






2017 4q 682 11,008,417 522,063 4.7% (4,908) 0 0 0 0 $16.21

2017 3q 682 11,008,417 517,155 4.7% (25,069) 0 0 0 0 $16.31

2017 2q 682 11,008,417 492,086 4.5% 75,889 0 0 0 0 $16.69

2017 1q 682 11,008,417 567,975 5.2% 91,406 0 0 0 0 $17.12

2016 4q 682 11,008,417 659,381 6.0% 106,537 0 0 0 0 $16.97

2016 3q 682 11,008,417 765,918 7.0% (49,940) 0 0 0 0 $17.69

2016 2q 682 11,008,417 715,978 6.5% 61,247 0 0 0 0 $17.36

2016 1q 682 11,008,417 777,225 7.1% 19,592 0 0 0 0 $17.33

2015 4q 682 11,008,417 796,817 7.2% (6,841) 0 0 0 0 $17.12

2015 3q 682 11,008,417 789,976 7.2% 11,930 0 0 0 0 $16.63

2015 2q 682 11,008,417 801,906 7.3% 9,302 0 0 0 0 $16.89

2015 1q 682 11,008,417 811,208 7.4% (28,945) 0 0 0 0 $16.91

2014 4q 682 11,008,417 782,263 7.1% 32,957 0 0 0 0 $17.00

2014 3q 682 11,008,417 815,220 7.4% (33,802) 0 0 0 0 $16.82

2014 2q 682 11,008,417 781,418 7.1% (2,984) 0 0 0 0 $15.75

2014 1q 682 11,008,417 778,434 7.1% 90,414 0 0 0 0 $15.44



(0.060)

(0.040)

(0.020)

0.000

0.020

0.040

0.060

0.080

0.100

0.120


Millions

SF

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

Perce

nt V

aca

nt


$15.00

$15.50

$16.00

$16.50

$17.00

$17.50

$18.00

2016 1q 2016 3q 2017 1q 2017 3q

Dollars

/SF/Y

ear

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

0.90

2016 1q 2016 3q 2017 1q 2017 3q

Millions

SF

Direct SF Sublet SF







S a l e m C o u n t y M a r k e t






2017 4q 97 942,741 31,482 3.3% 7,450 0 0 0 0 $15.91

2017 3q 97 942,741 38,932 4.1% (9,067) 0 0 0 0 $17.45

2017 2q 97 942,741 29,865 3.2% 9,858 0 0 0 0 $16.98

2017 1q 97 942,741 39,723 4.2% 11,469 0 0 0 0 $18.54

2016 4q 97 942,741 51,192 5.4% (253) 0 0 0 0 $18.37

2016 3q 97 942,741 50,939 5.4% (6,100) 0 0 0 0 $18.37

2016 2q 97 942,741 44,839 4.8% 0 0 0 0 0 $18.37

2016 1q 97 942,741 44,839 4.8% 2,600 0 0 0 0 $20.02

2015 4q 97 942,741 47,439 5.0% 0 0 0 0 0 $20.24

2015 3q 97 942,741 47,439 5.0% (4,212) 0 0 0 0 $20.24

2015 2q 97 942,741 43,227 4.6% (5,109) 0 0 0 0 $20.17

2015 1q 97 942,741 38,118 4.0% 0 0 0 0 0 $21.52

2014 4q 97 942,741 38,118 4.0% 10,600 1 8,000 0 0 $22.10

2014 3q 96 934,741 40,718 4.4% 2,000 0 0 1 8,000 $21.81

2014 2q 96 934,741 42,718 4.6% 600 0 0 1 8,000 $21.98

2014 1q 97 935,435 44,012 4.7% 3,306 0 0 1 8,000 $21.47



(0.015)

(0.010)

(0.005)

0.000

0.005

0.010

0.015


Millions

SF

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

Perce

nt V

aca

nt


$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

2016 1q 2016 3q 2017 1q 2017 3q

Dollars

/SF/Y

ear

0.00

0.01

0.02

0.03

0.04

0.05

0.06

2016 1q 2016 3q 2017 1q 2017 3q

Millions

SF

Direct SF Sublet SF







S c h u y l k i l l C o u n t y M a r k e t






2017 4q 146 1,179,477 22,410 1.9% (1,885) 0 0 0 0 $16.12

2017 3q 146 1,179,477 20,525 1.7% 13,142 0 0 0 0 $16.43

2017 2q 146 1,179,477 33,667 2.9% 6,268 0 0 0 0 $16.26

2017 1q 146 1,179,477 39,935 3.4% (13,968) 0 0 0 0 $15.87

2016 4q 146 1,179,477 25,967 2.2% 9,243 0 0 0 0 $15.95

2016 3q 146 1,179,477 35,210 3.0% 700 0 0 0 0 $15.13

2016 2q 146 1,179,477 35,910 3.0% 16,757 0 0 0 0 $15.65

2016 1q 146 1,179,477 52,667 4.5% 6,630 0 0 0 0 $14.97

2015 4q 146 1,179,477 59,297 5.0% 5,180 0 0 0 0 $15.75

2015 3q 146 1,179,477 64,477 5.5% 100 0 0 0 0 $14.31

2015 2q 146 1,179,477 64,577 5.5% (8,942) 0 0 0 0 $14.57

2015 1q 146 1,179,477 55,635 4.7% (4,160) 0 0 0 0 $14.31

2014 4q 146 1,179,477 51,475 4.4% (400) 0 0 0 0 $14.12

2014 3q 146 1,179,477 51,075 4.3% 1,350 0 0 0 0 $14.09

2014 2q 146 1,179,477 52,425 4.4% 4,800 0 0 0 0 $14.35

2014 1q 146 1,179,477 57,225 4.9% 0 0 0 0 0 $14.35



(0.020)

(0.015)

(0.010)

(0.005)

0.000

0.005

0.010

0.015

0.020


Millions

SF

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

Perce

nt V

aca

nt


$14.00

$14.50

$15.00

$15.50

$16.00

$16.50

$17.00

2016 1q 2016 3q 2017 1q 2017 3q

Dollars

/SF/Y

ear

0.00

0.01

0.02

0.03

0.04

0.05

0.06

2016 1q 2016 3q 2017 1q 2017 3q

Millions

SF

Direct SF Sublet SF







S o u t h e r n N e w J e r s e y M a r k e t






2017 4q 3,493 40,354,546 3,309,169 8.2% (74,608) 0 0 10 768,652 $16.74

2017 3q 3,493 40,354,546 3,234,561 8.0% 16,432 2 11,200 9 765,152 $16.81

2017 2q 3,491 40,347,734 3,244,181 8.0% 161,485 1 4,350 10 758,952 $16.45

2017 1q 3,490 40,343,384 3,401,316 8.4% 55,763 3 92,691 6 489,126 $16.52

2016 4q 3,487 40,250,693 3,364,388 8.4% 279,204 1 155,308 8 575,017 $16.33

2016 3q 3,486 40,095,385 3,488,284 8.7% 248,759 0 0 4 486,859 $16.33

2016 2q 3,487 40,099,946 3,741,604 9.3% 139,492 0 0 4 486,859 $15.92

2016 1q 3,487 40,099,946 3,881,096 9.7% (27,504) 1 10,000 3 479,859 $16.22

2015 4q 3,486 40,089,946 3,843,592 9.6% 125,825 0 0 3 415,308 $15.43

2015 3q 3,486 40,089,946 3,969,417 9.9% 163,863 0 0 2 165,308 $15.90

2015 2q 3,487 40,093,188 4,136,522 10.3% 192,017 1 17,800 1 10,000 $15.62

2015 1q 3,486 40,075,388 4,310,739 10.8% 116,577 2 15,500 2 27,800 $15.85

2014 4q 3,485 40,098,558 4,450,486 11.1% 121,957 3 231,950 3 33,300 $15.14

2014 3q 3,482 39,866,608 4,340,493 10.9% (63,265) 1 30,000 6 265,250 $15.73

2014 2q 3,481 39,836,608 4,247,228 10.7% 4,314 0 0 7 295,250 $15.78

2014 1q 3,481 39,836,608 4,251,542 10.7% 65,290 0 0 4 268,100 $16.40



(0.100)

(0.050)

0.000

0.050

0.100

0.150

0.200

0.250

0.300


Millions

SF

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

Perce

nt V

aca

nt


$15.40

$15.60

$15.80

$16.00

$16.20

$16.40

$16.60

$16.80

$17.00

2016 1q 2016 3q 2017 1q 2017 3q

Dollars

/SF/Y

ear

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

2016 1q 2016 3q 2017 1q 2017 3q

Millions

SF

Direct SF Sublet SF







S u b u r b a n P h i l a d e l p h i a M a r k e t






2017 4q 7,564 131,936,151 12,871,030 9.8% 250,230 1 3,200 5 93,202 $23.96

2017 3q 7,560 131,892,023 13,100,060 9.9% 158,370 7 163,489 7 114,402 $23.80

2017 2q 7,553 131,728,534 13,094,941 9.9% 613,590 2 74,931 12 251,788 $23.94

2017 1q 7,551 131,649,251 13,633,600 10.4% (150,516) 1 100,300 13 320,376 $23.87

2016 4q 7,549 131,644,182 13,482,524 10.2% 83,069 3 227,000 11 349,476 $23.69

2016 3q 7,547 131,420,806 13,342,217 10.2% 388,616 1 7,000 11 552,377 $23.75

2016 2q 7,546 131,427,184 13,716,971 10.4% 437,270 3 77,704 9 357,808 $23.32

2016 1q 7,544 131,330,696 14,055,065 10.7% 49,377 1 2,700 10 439,663 $23.21

2015 4q 7,543 131,327,996 14,101,742 10.7% 173,701 0 0 8 299,063 $23.11

2015 3q 7,545 131,344,356 14,291,803 10.9% 861,381 3 366,626 5 124,511 $23.08

2015 2q 7,546 131,088,722 14,897,550 11.4% 485,647 1 6,231 4 369,326 $22.91

2015 1q 7,549 131,123,991 15,418,466 11.8% 253,209 1 25,000 4 372,857 $22.87

2014 4q 7,548 131,098,991 15,646,675 11.9% 306,758 1 14,500 5 397,857 $22.76

2014 3q 7,547 131,084,491 15,938,933 12.2% 263,025 1 195,281 6 412,357 $22.75

2014 2q 7,549 131,085,823 16,203,290 12.4% 367,459 5 97,429 6 562,238 $22.50

2014 1q 7,545 130,995,894 16,480,820 12.6% (684,903) 0 0 8 313,441 $22.68



(0.800)

(0.600)

(0.400)

(0.200)

0.000

0.200

0.400

0.600

0.800

1.000


Millions

SF

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

Perce

nt V

aca

nt


$22.80

$23.00

$23.20

$23.40

$23.60

$23.80

$24.00

$24.20

2016 1q 2016 3q 2017 1q 2017 3q

Dollars

/SF/Y

ear

11.50

12.00

12.50

13.00

13.50

14.00

14.50

2016 1q 2016 3q 2017 1q 2017 3q

Millions

SF

Direct SF Sublet SF







V i n e l a n d / B r i d g e t o n M a r k e t






2017 4q 272 2,164,929 174,485 8.1% (1,118) 0 0 0 0 $18.46

2017 3q 272 2,164,929 173,367 8.0% (23,122) 0 0 0 0 $18.37

2017 2q 272 2,164,929 150,245 6.9% (15,283) 0 0 0 0 $18.18

2017 1q 272 2,164,929 134,962 6.2% (10,529) 0 0 0 0 $18.07

2016 4q 272 2,164,929 124,433 5.7% 16,414 0 0 0 0 $18.25

2016 3q 272 2,164,929 140,847 6.5% (3,728) 0 0 0 0 $17.98

2016 2q 272 2,164,929 137,119 6.3% 47,360 0 0 0 0 $17.55

2016 1q 272 2,164,929 184,479 8.5% (13,223) 1 11,250 0 0 $17.12

2015 4q 271 2,153,679 160,006 7.4% 12,467 0 0 1 11,250 $17.24

2015 3q 271 2,153,679 172,473 8.0% 1,393 0 0 1 11,250 $17.21

2015 2q 271 2,153,679 173,866 8.1% 22,162 0 0 1 11,250 $17.09

2015 1q 270 2,142,432 184,781 8.6% 3,902 0 0 1 11,247 $16.46

2014 4q 270 2,142,432 188,683 8.8% (12,669) 0 0 1 11,247 $16.52

2014 3q 270 2,142,432 176,014 8.2% 10,230 0 0 1 11,247 $17.45

2014 2q 270 2,142,432 186,244 8.7% 11,058 0 0 0 0 $16.91

2014 1q 270 2,142,432 197,302 9.2% (6,566) 0 0 0 0 $16.49



(0.030)

(0.020)

(0.010)

0.000

0.010

0.020

0.030

0.040

0.050

0.060


Millions

SF

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

Perce

nt V

aca

nt


$16.00

$16.50

$17.00

$17.50

$18.00

$18.50

$19.00

2016 1q 2016 3q 2017 1q 2017 3q

Dollars

/SF/Y

ear

0.00

0.02

0.04

0.06

0.08

0.10

0.12

0.14

0.16

0.18

0.20

2016 1q 2016 3q 2017 1q 2017 3q

Millions

SF

Direct SF Sublet SF







Y o r k / H a n o v e r M a r k e t






2017 4q 749 8,400,628 497,561 5.9% 1,400 0 0 0 0 $17.74

2017 3q 749 8,400,628 498,961 5.9% (29,853) 0 0 0 0 $18.05

2017 2q 748 8,399,788 468,268 5.6% 15,646 0 0 1 840 $17.41

2017 1q 748 8,399,788 483,914 5.8% 31,636 0 0 1 840 $17.40

2016 4q 748 8,399,788 515,550 6.1% 77,721 0 0 1 840 $17.43

2016 3q 748 8,399,788 593,271 7.1% 11,071 0 0 0 0 $17.38

2016 2q 748 8,399,788 604,342 7.2% 16,504 0 0 0 0 $17.27

2016 1q 748 8,399,788 620,846 7.4% (25,799) 0 0 0 0 $18.06

2015 4q 748 8,399,788 595,047 7.1% (48,053) 0 0 0 0 $17.85

2015 3q 748 8,399,788 546,994 6.5% 91,953 0 0 0 0 $17.66

2015 2q 748 8,399,788 638,947 7.6% 6,451 0 0 0 0 $17.50

2015 1q 748 8,399,788 645,398 7.7% (14,699) 0 0 0 0 $17.08

2014 4q 748 8,399,788 630,699 7.5% (37,263) 0 0 0 0 $16.98

2014 3q 748 8,399,788 593,436 7.1% (20,390) 0 0 0 0 $16.54

2014 2q 748 8,399,788 573,046 6.8% (36,551) 0 0 0 0 $15.85

2014 1q 748 8,399,788 536,495 6.4% 63,037 1 60,000 0 0 $15.40



(0.060)

(0.040)

(0.020)

0.000

0.020

0.040

0.060

0.080

0.100


Millions

SF

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

Perce

nt V

aca

nt


$16.80

$17.00

$17.20

$17.40

$17.60

$17.80

$18.00

$18.20

2016 1q 2016 3q 2017 1q 2017 3q

Dollars

/SF/Y

ear

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

2016 1q 2016 3q 2017 1q 2017 3q

Millions

SF

Direct SF Sublet SF

2017 greater philadelphia...

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