Survey
Office
Rent Index
Suburban Philadelphia - Montgomery County
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.