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Philadelphia Market Reports

Philadelphia Office Market

Average Asking Rent (Price/SF) $27.55
Vacancy Rate (%) 14.4%
Net Absorption (SF) 261,684

The Philadelphia Central Business District's (CBD's) average direct asking rental rate reached a record high of $30.39/SF in the second quarter of 2017, which was attributed to the high rents commanded at trophy properties. During the quarter, the average trophy rate breached the $40.00/SF mark for the second time over the past 12 months. While the average asking rental rate of $30.29/SF for non-trophy, Class A buildings remained flat from the prior quarter, it was $1.33/SF higher than reported one year ago. Additionally, the Class B average asking rent achieved a record high of $28.35/SF due to rent increases at 1500 Spring Garden, the Witherspoon Building and 1 Penn Center.

Philadelphia Industrial Market

Average Asking Rent (Price/SF) $5.07
Vacancy Rate (%) 7.1%
Net Absorption (SF) 539,785

Absorption totaled 539,785 square feet for the Greater Philadelphia region in the second quarter of 2017. While still positive, this amount is around 1.2 million square feet less than what was recorded in the first quarter of 2017 and 2.0 million square feet less than what was documented one year ago. Regional vacancy rates stayed flat over the last 90 days and have decreased 90 basis points from last year. Quarter-over-quarter, the overall average direct rental rate stayed level at $5.07/SF, but a year-over-year comparison shows an increase of $0.10/SF.



Philadelphia Office Market Report
2Q17
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Philadelphia Industrial Market Report
2Q17
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