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Philadelphia Market Reports

Philadelphia Office Market

Average Asking Rent (Price/SF) $28.76
Vacancy Rate (%) 13.2%
Net Absorption (SF) 513,973

As discussed in detail below, the overall performance of the market during the third quarter was positive with healthy net absorption and a noteworthy reduction in vacancy. Asking rents remained at or near all-time highs resulting from sustained demand, higher construction costs and influence from owners of newly acquired properties, who have lender mandates to meet pro forma. One suburban user has made the commitment to move its headquarters to Philadelphia, while several existing CBD users announced decisions to relocate within the market area. In line with national trends, many of these users will maintain or increase employee headcount, but nearly all will choose to utilize their space more efficiently and reduce their footprint.

Philadelphia Industrial Market

Average Asking Rent (Price/SF) $5.41
Vacancy Rate (%) 5.8%
Net Absorption (SF) 557,923

Greater Philadelphia's vacancy, at 5.8%, remained flat from the second quarter. However, vacancy is well below the 10-year average of 7.6%. The regional market recorded 557,923 square feet of new occupancy gains for all property types in the third quarter. Year-to-date absorption totaled positive 1.1 million square feet, but this was well below the 5.6 million square feet of year-to-date absorption reported for the first three quarters of 2017.

Philadelphia Office Market Report
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Philadelphia Industrial Market Report
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