COMMERCIAL PROPERTIES
Q3 2019 Summary
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Commercial property owners experienced another positive quarter with available inventory decreasing and lease rates increasing. Vacancy rates for Class A commercial office space dropped one half percent from the last quarter to 10.7%, while the average lease rate increased to $32.30/SF. At this time five years ago, the Class A rate was 15.9% with lease rates less than $27.00/SF.
Class B office space held steady at 13.9% with the average lease rate at $22.91/SF. Class C space remained the same with a 1.7% vacancy rate, while the average lease price PSF increased by more than $2 from last quarter to $19.55. When all three classifications are combined, the office vacancy rate has declined from 18.8% in September 2014 to 11.2% at the end of September 2019, with the average lease rate rising by $7.50 to $27.49/SF.
Industrial/Flex vacancy rates remained steady at 5.9%, while average lease rates more than tripled from the same time 5 years ago to $25.78 NNN.
Thanks as always for your support and interest in King of Prussia.
Eric T. Goldstein
Executive Director
King of Prussia District
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Despite the more than 6M SF of commercial office space and 4,000+ companies in King of Prussia, a dedicated co-working space has not been a part of the King of Prussia commercial office scene. Until now! The Hallwayz, located at 840 First Avenue, Suite 400 in Moore Park, is a “community of businesses housed within a flexible space that fits the need of the modern, innovative and dynamic entrepreneur.” The Hallwayz provides space for the entrepreneurial King of Prussia community to develop, share and realize ideas.
The King of Prussia location is approximately 5,700SF and features 30-foot ceilings, a number of office and seating configurations, conference/training rooms, a permanent address for your company complete with PO Box and optional phone service. “Our space enjoys a culture inspired by individuals determined and focused on realizing their goals,” stated Bill Miles of The Hallwayz. “We believe that companies can significantly increase productivity by being ‘plugged-in’ to a like-minded culture of others pursuing their professional goals. That’s what we provide at The Hallwayz…all for a reasonable monthly price,” added Mario Martinez of The Hallwayz.
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Commercial RE Transactions
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Sales
MS County Line Associates LLC
1021 W 8th Ave.
$3M
Malvern School Real Estate LP
800 Mancill Mill Rd.
$1.55M
Assayag Holdings 860 LLC
860 First Ave. #2
$781K
Leasing
301 E Church Rd.
11,426 SF
826 W DeKalb Pk.
10,000 SF
2700 Horizon Dr.
8,300 SF
1000 Continental Dr.
4,652 SF
225 S Henderson Rd.
4,300 SF
268 W DeKalb Pk.
3,200 SF
357 S Gulph Rd.
3,134 SF
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197A E DeKalb Pk.
3,000 SF
371 E Church Rd.
2,600 SF
700 S Henderson Rd.
2,292 SF
640 Freedom Business Center Dr.
2,027 SF
660 American Ave.
2,010 SF
Eloquil
2,843 SF
B8ta
2,100 SF
Kung Fu Tea
127 SF
Zadig & Voltaire
2,959 SF
* Commercial Office
* Retail
Not a complete listing.
Retail leases submitted to King of Prussia District for Q3 2019, as of 10/14/19. All other sales and leasing info from CoStar.
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King of Prussia District is a 501(c)(3) not-for-profit, special services organization.
King of Prussia District engages public and private partners to collaboratively
improve the economic environment in King of Prussia by making it more vibrant,
attractive and prosperous.
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DISCLAIMER: All information obtained using CoStar Analytics and field checked for accuracy by King of Prussia District. Vacancy rates are calculated using existing, non-owner occupied commercial buildings in Upper Merion Township only, over 10,000 SF, Class A, B, and C plus retail, industrial and flex. King of Prussia District uses "Direct % Vacant Available" in its vacancy reporting. All industrial and flex statistics are NNN.
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234 Mall Boulevard, Suite 150, King of Prussia, PA 19406
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© 2019 King of Prussia District. All rights reserved.
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