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I-81/78 Corridor Market Reports

Philadelphia I81/78 Corridor Industial Market

Average Asking Rent (Price/SF) $4.68
Vacancy Rate (%) 7.6%
Net Absorption (SF)  750,658

Absorption of industrial space in the I-81/78 Corridor moved into positive territory in the third quarter of 2019, following last quarter's net occupancy losses, the market's first in a decade. Large occupancies such as Lowes' move into the 1.2-million-square-foot warehouse at 4532 United Drive in the Central Pennsylvania submarket were tempered by a continuation of struggling national retailers closing warehouse operations. Nevertheless, the market realized approximately 751,000 square feet in positive absorption. Speculative supply additions outpaced demand, causing market vacancy to increase 50 basis points from last quarter to 7.6%. Although this is the highest vacancy rate charted in the market since 2014, activity scheduled for the fourth quarter is expected to stem the upward creep in vacancy. Numerous build-to-suit warehouses will deliver across the market, and vacant speculative warehouses will be occupied by tenants who leased them earlier in the year. Pending occupancies by QVC, True Value, NFI, Riviana Foods, Bayer Pharmaceuticals, McKesson and more will carry the market's renewed momentum through the rest of the year.

Philadelphia I-81/78 Corridor Industrial Market Report
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