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Year-End 2017 Market Report: Demand for Coworking Space Remains Strong in Philadelphia Office Market

| February 9, 2018 | 0 Comments

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Cushman & Wakefield Expects Significant Growth to Continue in 2018

PHILADELPHIA, Feb. 9, 2018 – Philadelphia’s coworking sector continues to grow and become more competitive, finishing another strong year in 2017 in terms of leasing activity and positive absorption, according to Cushman & Wakefield. The commercial real estate services firm’s Philadelphia research team released its year-end 2017 Coworking Space MarketBeat report, which projects continued demand for coworking office space through 2018.

“The coworking industry in Philadelphia has grown significantly since 2011, and last year we saw this trend continue” said Jared Jacobs, Cushman & Wakefield research manager. “In the downtown market, three new coworking companies signed leases in 2017 totaling nearly 110,000 square feet of office space, while two others expanded their current space by approximately 75,000 square feet.”

MakeOffices, one of the largest coworking operators in the United States, opened its second location in Philadelphia at 1635 Market Street in the West of Broad submarket. The 56,776-square-foot center, which encompasses four floors, is currently the largest coworking space in the city. Slated to open in 2016, the grand opening was delayed by over a year due to the complexity of constructing the multi-story space. In addition, coworking company Bond Collective opened a 21,526-square-foot satellite office on the 20th floor of 1617 John F. Kennedy Boulevard.

In the East of Broad submarket, California-based coworking space provider Roost signed a 50,514-square-foot lease at 34 South 11th Street. Spaces, a subsidiary of Regus, leased five floors totaling 37,735 square feet at 1328 Chestnut Street. With the opening of its eighth Philadelphia location at 677 North Broad Street in the North of Broad submarket, Philadelphia-based Benjamin’s Desk expanded its presence in the city by 17,864 square feet.

While many coworking companies are expanding their footprints downtown, others closed their doors in 2017 due to low occupancy rates. Venturef0rth, a local coworking operator, closed its office at 417 North 8th Street in the East of Broad submarket; and Devnuts closed its location at 908A North 3rd Street in the North of Broad submarket.

“2018 will be another positive year for the coworking industry,” noted Jacobs. “More than 230,000 square feet of coworking space is expected to be absorbed in the first half of the year, and the total number of providers is projected to grow from 17 to 21 by year-end 2018.”

This includes Cambridge, Massachusetts-based Cambridge Innovation Center (CIC), the anchor tenant at the 6.5-million-square-foot, master planned mixed-use development uCity Square in the University City submarket. Currently under construction and set to open in the fall, the 125,000-square-foot coworking facility will be the largest in the downtown market.

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About Cushman & Wakefield

Cushman & Wakefield is a leading global real estate services firm with 45,000 employees in more than 70 countries helping occupiers and investors optimize the value of their real estate. Cushman & Wakefield is among the largest commercial real estate services firms with revenue of $6 billion across core services of agency leasing, asset services, capital markets, facility services (C&W Services), global occupier services, investment & asset management (DTZ Investors), project & development services, tenant representation, and valuation & advisory. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter.

 

 

Media Contacts:
Karen Ravensbergen/Elizabeth Masters
Caryl Communications
201-796-7788
karen@caryl.com / elizabeth@caryl.com

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Category: Cushman & Wakefield Philadelphia, News Releases, Newswire: Latest News

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