Monday, August 4, 2014

Philadelphia Retail Vacancy Decreases to 5.9%

The Philadelphia retail market did not experience much change in market conditions in the second quarter 2014.

The vacancy rate went from 6.0% in the previous quarter to 5.9% in the current quarter. Net absorption was positive 551,992 square feet, and vacant sublease space decreased by 20,121 square feet. In first quarter 2014, net absorption was positive 979,455 square feet.

Tenants moving into large blocks of space in 2014 include: ShopRite moving into 90,000 square feet at 1817 Mount Holly Rd; Giant Food moving into 66,472 square feet at 852 E Main St; and Acme moving into 58,785 square feet at 21-31 W Ridge Pike.

Quoted rental rates increased from first quarter 2014 levels, ending at $14.05 per square foot per year.

A total of 8 retail buildings with 66,506 square feet of retail space were delivered to the market in the quarter, with 203,783 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 6.4% from the previous quarter, with net absorption positive 23.39 million square feet in the second quarter. Average rental rates increased to $14.81, and 522 retail buildings delivered to the market totaling more than 10.8 million square feet.

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