Thursday, July 25, 2013

Philadelphia's Retail Vacancy Stays at 6.4%

The Philadelphia retail market did not experience much change in market conditions in the second quarter 2013. 

The vacancy rate stayed the same as the previous quarter at 6.4%. Net absorption was positive 131,211 square feet, and vacant sublease space decreased by 33,585 square feet. In first quarter 2013, net absorption was positive 135,507 square feet. 

Tenants moving into large blocks of space in 2013 include: Burlington Coat Factory moving into 69,655 square feet at 100 S 69th St; ShopRite moving into 65,000 square feet at Four Seasons Plaza - Building 1; and Giant Food moving into 60,000 square feet at 116 Township Line Rd. 

Quoted rental rates decreased from first quarter 2013 levels, ending at $13.75 per square foot per year. 

A total of 6 retail buildings with 106,291 square feet of retail space were delivered to the market in the quarter, with 829,727 square feet still under construction at the end of the quarter. 

This trend is compared to the U.S. National Retail vacancy rate, which decreased to 6.7% from the previous quarter, with net absorption positive 23.11 million square feet in the second quarter. Average rental rates increased to $14.50 this quarter, and 593 retail buildings delivered to the market totaling almost 9.6 million square feet.

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