Suburban Philadelphia – Montgomery County, PA

This office rent index represents the average rents in 33 office leases in the Montgomery County suburbs of Philadelphia. There are 21 office buildings or Corporate Centers included in this sample. The lease commencements of this group ranges from September of 1998 to June 2001. The age, location, and quality of buildings vary. The majority of the buildings, 12 of them, are A class. Four are A+ class. Another four buildings in the sample are B+, and one is B class. The rental rates actually range from as low as $14.50 per square foot plus electric to $31 per square foot plus electric. All the rental rates have been adjusted to reflect full service rates net of electricity. These classifications are based on subjective observations concerning location, appearance, and quality of services.

Year of Lease Commencements for Sample

3 for 1998
15 from 1999
14 for 2000
1 for 2001

Mean Average Rent per square foot per year net of electric
$ 24.53 per SF + electric

Mean Average cost of Tenant Improvements paid by Landlord
$ 15.20 per square foot

Annual Rent Escalations
All leases had one type of rent escalator, 22 of the 31 leases had two types of rent escalation a fixed bump and pass through of increases in operating expenses.

Lease Term
Lease term varies from five years, seven years, and ten years

Mean Lease Size
16,468 SF; Building Size= 144,131

Future survey will be for Occupancy levels and expanded sample size soon to come.