Monday, August 5, 2013

Philadelphia's Industrial Vacancy Increases to 9.3%

The Philadelphia Industrial market ended the second quarter 2013 with a vacancy rate of 9.3%.

The vacancy rate was up over the previous quarter, with net absorption totaling negative 965,846 square feet in the second quarter. That compares to positive 64,473 square feet in the first quarter 2013. Vacant sublease space increased in the quarter, ending the quarter at 2,424,434 square feet. 

Tenants moving into large blocks of space in 2013 include: One Kings Lane moving into 503,423 square feet at Commerce Circle, Perdue moving into 223,750 square feet at 1801 Dulaney St - Building 1, and Schenker Logistics moving into 700 Allen Rd. 

Rental rates ended the second quarter at $4.49, an increase over the previous quarter. 

A total of one building delivered to the market in the quarter totaling 70,000 square feet, with 4,149,992 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 8.5% from the previous quarter, with net absorption positive 44.6 million square feet in the second quarter. Average rental rates increased to $5.25 this quarter, and 167 industrial buildings delivered to the market totaling almost 17.5 million square feet.

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