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Philadelphia Market Reports

Philadelphia Office Market

Average Asking Rent (Price/SF) $29.58
Vacancy Rate (%) 13.6%
Net Absorption (SF) 258,996

A collection of large occupancies across the market drove net absorption to total 259,000 square feet in the third quarter of 2019, a big boost up from the past two quarters where absorption netted out to essentially zero. New-to-market tenants and headquarter relocation/expansions were the primary engines of this quarter's stellar performance. Market-wide, vacancy was trimmed by 20 basis points to 13.6%, and average asking rents continued to escalate, growing a full dollar year-over-year to $29.58/SF.

Philadelphia Industrial Market

Average Asking Rent (Price/SF) $6.36
Vacancy Rate (%) 5.2%
Net Absorption (SF)  1,216,234

Greater Philadelphia's industrial market has seen incredible growth in this economic cycle, absorbing 34.0 million square feet in new tenancy over the past five years. Developers were slower to respond to this pent-up demand, particularly in suburban Philadelphia markets: Over the same period, only 26.0 million square feet in new construction delivered. However, in the past 12 months, development levels have accelerated across the region, culminating in nearly 8.0 million square feet under construction in the third quarter of 2019, an all-time high for the market. The majority of the space (70.0%) is speculative and available, which should come as a boon to tenants still having difficulty finding modern logistics space in the region. Although development levels are at new heights, the market has averaged well over 1.0 million square feet of net absorption per quarter since 2014, so there is certainly room for greater expansion in most parts of the market.

Philadelphia Office Market Report
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Philadelphia Industrial Market Report
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