Third Quarter 2013

Issue Thirty-One

3Q 2013 Recap

Quick Links

• Overview

• Roles & Responsibilities

• Tenant Representation

• Corporate Account Management

• Relevant Experience

• Publications

Contact:

Scott M. Miller
+1 610 251 5187
scott.miller@cbre.com
Licensed: PA

Joseph S. Conwell

+1 610 251 5101

joseph.conwell@cbre.com
Licensed: PA

James P. Kelley
+1 610 251 5156
james.kelley@cbre.com
Licensed: PA

Rija R. Beares
+1 610 251 5153
valerija.beares@cbre.com
Licensed: PA

CBRE, Inc.
1200 Liberty Ridge Drive
Suite 320
Wayne, PA 19087

Licensed Real Estate Broker 

RE: Philadelphia Suburban Office Market - Third Quarter 2013

Little has changed in the Philadelphia market office space-wise in the past 12-24 months. The usual suspect submarkets (Radnor, Conshohocken, Center City trophy class) are highly occupied with rising rents but there are plenty of other good space options in the secondary tier submarkets. Developers are not building new buildings (going on seven years now), and job creation, the catalyst for commercial growth, has not increased in a meaningful way. Rather than significant quantitative changes, we have witnessed a qualitative change in workplace environments.

Creative office space has expanded beyond traditional media and tech companies to include industries such as law firms, pharmaceutical companies and financial services institutions. The trend is well underway and will become increasingly more important as companies continue to become more service and information-based.  The main driver of the shift is underutilization and inefficiency in a traditional office layout. Companies are using space differently than they did in past decades. Eight hour workdays are a thing of the past. People are e-commuting or working on a flexible schedule. Rapid technology efficiencies are occurring: less paper (ideally paperless), email, text, instant messaging, cloud storage, etc. The real world application is creative work space to accommodate longer hours and the lack of face-to-face communication that comes with mobility and technological advances. The new work space is short on hard-walled offices and heavy on shared, collaborative space in the form of meeting rooms, cafe-style kitchens and socialization areas.

The ultimate outcome: cultural changes that enhance collaboration, creativity and productivity, a work space where people can do their best work. 
 

Our team would like to thank the following clients for their support in the third quarter of 2013:

	• CBRE Econometric Advisors Market Report • Third Quarter 2013 Market Index Brief