Monday, October 27, 2014

Philadelphia Retail Vacancy Stays at 5.9%

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

The vacancy rate stayed constant ending at 5.9% in the previous quarter and 5.9% in the current quarter. Net absorption was positive 177,364 square feet, and vacant sublease space decreased by 5,476 square feet. In second quarter 2014, net absorption was positive 515,170 square feet. 

Tenants moving into large blocks of space in 2014 include: ShopRite moving into 90,000 square feet at Wishing Well Plaza; Giant Food moving into 66,472 square feet at Ephrata Marketplace; and Burlington Coat Factory moving into 62,224 square feet at 1537 Bethlehem Pike. 

Quoted rental rates decreased from second quarter 2014 levels, ending at $13.96 per square foot per year. 

A total of 5 retail buildings with 80,793 square feet of retail space were delivered to the market in the quarter, with 389,251 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 6.3% from the previous quarter, with net absorption positive 26.48 million square feet in the third quarter. Average rental rates increased to $14.84, and 542 retail buildings delivered to the market totaling more than 13.9 million square feet.

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