Monday, August 7, 2017

Philadelphia's Industrial Vacancy Increases to 5.9%

The Philadelphia Industrial market ended the second quarter 2017 with a vacancy rate of 5.9%.

The vacancy rate was up over the previous quarter, with net absorption totaling positive 1,782,519 square feet in the second quarter. That compares to positive 9,931,174 square feet in the first quarter 2017. Vacant sublease space increased in the quarter, ending the quarter at 1,193,014 square feet.

The Flex building market recorded net absorption of positive 428,315 square feet while the Warehouse building market recorded net absorption of positive 1,354,204 square feet in the second quarter 2017.

Tenants moving into large blocks of space in 2017 include: Uline moving into 1,070,000 square feet at Liberty Business Center III - Bldg 1, Mattel moving into 1,002,000 square feet at 575 Old Forge Rd, and PepsiCo moving into 502,754 square feet at 545 Oak Hill Rd.

Rental rates ended the second quarter at $4.84, a decrease over the previous quarter.

A total of 14 buildings delivered to the market in the quarter totaling 5,075,807 square feet, with 15,226,755 square feet still under construction at the end of the quarter.

This trend is compared to the U.S. National Industrial vacancy rate, which decreased to 5.1% from the previous quarter, with net absorption positive 71.76 million square feet in the second quarter. Average rental rates increased to $6.22, and 537 industrial buildings delivered this quarter totaling more than 64.4 million square feet, with almost 272.4 million square feet still under construction.
www.omegare.com

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