Monday, November 3, 2014

Philadelphia Industrial Vacancy Decreases to 8.3%

he Philadelphia Industrial market ended the third quarter 2014 with a vacancy rate of 8.3%.

The vacancy rate was down over the previous quarter, with net absorption totaling positive 3,482,534 square feet in the third quarter. That compares to positive 3,536,167 square feet in the second quarter 2014. Vacant sublease space decreased in the quarter, ending the quarter at 942,647 square feet.

Tenants moving into large blocks of space in 2014 include: Walmart Distribution moving into 1,200,000 square feet at 2785 Commerce Center Blvd, Ocean Spray moving into 980,000 square feet at West Hills Business Center - Building A, and Kane Warehousing, Inc. moving into 955,935 square feet at Distribution Center 6 in the Stauffer Industrial Park.

Rental rates ended the third quarter at $4.49, no change over the previous quarter.

A total of four buildings delivered to the market in the quarter totaling 906,337 square feet, with 12,035,258 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 7.5% from the previous quarter, with net absorption positive 64.71 million square feet in the third quarter. Average rental rates increased to $5.47, and 206 industrial buildings delivered to the market totaling more than 30.8 million square feet.

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