Tuesday, November 5, 2013

Philadelphia's Retail Vacancy Stays at 6.4%

The Philadelphia retail market did not experience much change in market conditions in the third quarter 2013. The vacancy rate stayed the same as the previous quarter at 6.4%. 

Net absorption was positive 445,033 square feet, and vacant sublease space decreased by 73,378 square feet. In second quarter 2013, net absorption was positive 128,021 square feet. 

Tenants moving into large blocks of space in 2013 include: Restaurant Depot moving into 72,643 square feet at 2950 Roberts Ave; ShopRite moving into 71,900 square feet at 3450 Fox St; and Burlington Coat Factory moving into 69,655 square feet at 100 S 69th St. 

Quoted rental rates decreased from second quarter 2013 levels, ending at $13.76 per square foot per year. 

A total of 15 retail buildings with 427,588 square feet of retail space were delivered to the market in the quarter, with 452,361 square feet still under construction at the end of the quarter. 

This trend is compared to the U.S. National Retail vacancy rate, which remained at 6.7% from the previous quarter, with net absorption positive 18.41 million square feet in the third quarter. Average rental rates increased to $14.54 this quarter, and 660 retail buildings delivered to the market totaling more than 13.8 million square feet. 


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