Sunday, October 21, 2012

Philadelphia's Industrial Vacancy Rises to 9.0%

The Philadelphia Industrial market ended the third quarter 2012 with a vacancy rate of 9.0%. 

The vacancy rate was up over the previous quarter, with net absorption totaling positive 146,777 square feet in the third quarter. That compares to positive 2,609,140 square feet in the second quarter 2012. Vacant sublease space decreased in the quarter, ending the quarter at 2,695,326 square feet. 

Tenants moving into large blocks of space in 2012 include: Westport Axle moving into 516,800 square feet at 650 Boulder Dr, Ulta Inc moving into 361,900 square feet at I-81 Distribution Center - Bldg 1, and and M & M Logistics moving into 360,637 square feet at Center Point Business Center. 

Rental rates ended the third quarter at $4.45, a decrease over the previous quarter. 

A total of three buildings delivered to the market in the quarter totaling 2,189,000 square feet, with 5,585,944 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 9.1% from the previous quarter, with net absorption positive 24.73 million square feet in the third quarter. Average rental rates ended at $5.14, and 137 buildings delivered in the quarter.

Full report:

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