Friday, May 1, 2015

Philadelphia Industrial Vacancy Stays at 8.0%

The Philadelphia Industrial market ended the first quarter 2015 with a vacancy rate of 8.0%.

The vacancy rate was unchanged over the previous quarter, with net absorption totaling positive 2,325,770 square feet in the first quarter. That compares to positive 2,438,459 square feet in the fourth quarter 2014. Vacant sublease space increased in the quarter, ending the quarter at 1,928,064 square feet.

Tenants moving into large blocks of space in 2015 include: Zulily, Inc. moving into 800,250 square feet at 10 Emery St, moving into 700,000 square feet at 2 Ames Dr, and Jacobson Companies moving into 300,000 square feet at Harrisburg Distribution Center #4.

Rental rates ended the first quarter at $4.47, a decrease over the previous quarter. 

A total of eight buildings delivered to the market in the quarter totaling 2,721,284 square feet, with 10,814,461 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 7.0% from the previous quarter, with net absorption positive 49.59 million square feet in the first quarter. Average rental rates increased to $5.63, and 284 industrial buildings delivered this quarter totaling almost 37.5 million square feet.

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