Philadelphia Office Market
| Average Asking Rent (Price/SF) | $30.36 |
| Vacancy Rate (%) | 15.1% |
| Net Absorption (SF) | -685,514 |
Philadelphia Industrial Market
| Average Asking Rent (Price/SF) | $6.98 |
| Vacancy Rate (%) | 5.0% |
| Net Absorption (SF) | 2,710,713 |
Occupiers, investors, developers and landlords across Greater Philadelphia benefitted from a strong industrial market in the third quarter. Average asking rents modestly appreciated, the development pipeline expanded and vacancy decreased on the heels of the largest quarterly net absorption since the first quarter of 2015. 2.7 million square feet of positive net absorption accumulated during the past three months, driven by large occupancies in each of the three markets comprising the Greater Philadelphia region, predominately in newly delivered or renovated space. In New Castle County, Delaware, DART Container occupied its newly constructed 1.0-million-square-foot warehouse, having relocated and consolidated operations from Maryland. In Southeastern Pennsylvania, major occupancies by DHL, Giant/Peapod and Amazon, among others, drove quarterly absorption over 700,000 square feet. Amazon was also active in Southern New Jersey this quarter, occupying the approximately 500,000-square-foot warehouse at 1250 Forest Parkway in Gloucester County, a vintage 1990s building formerly occupied by Nine West prior to that retailer’s bankruptcy. New construction also proved attractive to occupiers in Southern New Jersey; Astral Diagnostics occupied the 126,117-square-foot warehouse at 2070 Center Square Road in Gloucester County and multiple leases were inked for warehouses under construction.
