In an era of booming construction, the default classification for Center City real estate use is residential. According to our friends at Philly.com, up to seven million s.f. has converted from commercial office space to make room for condos.
Given that JLL reports office vacancies in Center City, University City, and the Navy Yard were most recently down from a five-year high of 13.5 percent in 2010 to 9.9 percent in the most recent quarter, that's a sign to open up desk space. Multifamily inventory has shot up to 17,600 units, with more on the way.
While the pendulum is turning to increase supply of office space, the underlying trend is that dwellers who choose to live in the city also want to work there. The best employers are heeding that urban lifestyle call from employees. Walking from home to work is an upgrade from a long commute via vehicle.
· Stemming the loss of Center City office space [Philly.com]