Northeastern Pennsylvania -
Colliers presents their Q4 2025 Northeastern Pennsylvania Office Report.
The office market is expected to remain stable overall in 2026. Demand is not projected to strengthen, yet the absence of new large blocks of space should help keep conditions relatively balanced. Class A vacancy currently exceeds Class B, largely due to user purchases of Class B buildings and conversions to residential use. That may begin to shift in 2026 as tenants opt for higher-quality space, potentially tightening Class A vacancy. On the investment side, distress remains prevalent, creating new capital-buying opportunities on a reset basis. Lease-up strategies, conversions, equity infusions, note sales, and other capital stack bets are actively in play. Operating performance - not overall cap rate compression - will be the key driver of returns. Deal flow continues to be driven by nap-of-the-earth property-level underwriting, whereas portfolio and entity-level transactions likely will be constrained.
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