While Philadelphia’s office market still has a lower vacancy rate than most of Bucks County, this could be changing sometime in near future, writes Harold Brubaker for The Philadelphia Inquirer.
A possible glimpse into the future was provided recently by Radian Group, which decided to move its corporate headquarters from Center City into a significantly smaller space in Wayne. The mortgage insurer said it learned during the pandemic that its employees performed well without physically reporting to the office each day.
The move is concerning for Philadelphia’s central business district. But it could mean a very active post-pandemic CRE market for the suburbs, including Bucks County.
Center City Philadelphia reported a second-quarter commercial vacancy rate of 12.2 percent. The only nearby submarket that has posted a lower vacancy rate for the same quarter is Main Line/Radnor at 6.6 percent.
Meanwhile, the Central/Lower Bucks County submarket currently stands at a 23.7 percent commercial vacancy rate. This is also the highest vacancy rate in the region.
Read more about commercial vacancy rates in The Philadelphia Inquirer.