Regional Summaries

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Philadelphia, PA

The fourth quarter 2016 vacancy rate in the 212,482-unit metro Philadelphia area apartment market is just 3.6%, according to Reis, down 40 basis points from the fourth quarter of 2015 and the same as the fourth quarter of 2014. The rate was also essentially unchanged during the fourth quarter. Rent gains posted the largest gains since the early 2000s, a time of higher overall inflation, in 2016, according to Reis. The average asking rent increased 4.0% over the year to $1,236 per month, and the average effective rent rose 4.2% to $1,215 per month. The fourth quarter gain of 0.3% by both measures was the smallest quarterly increase of the year. VIEW APARTMENT LISTINGS >
Despite a quiet fourth quarter, 2016 was another banner year for the 247-million-square-foot metro Philadelphia warehouse/distribution market. Net absorption was once again measured in the millions of square feet, and rents posted a solid gain that approximated the rate of inflation. Reis reports an 8.4% vacancy rate for warehouse/distribution space in metro Philadelphia in the fourth quarter of 2016, down 50 basis points over the year but unchanged for the quarter alone. Despite several years of strong demand and single-digit vacancy, metro Philadelphia warehouse/distribution rents remain relatively low and its rent gains moderate. During 2016, the average asking rent increased 1.8% to $4.62 psf, with the average effective rent up 1.9% to $4.26 psf, including gains of 0.4% and 0.5% in the fourth quarter. Elsewhere in Eastern Pennsylvania, the distribution boom is even greater. The 47.9-million-square-foot Flex/R&D market remains weaker, with slightly smaller rent gains and slightly negative net demand. The fourth quarter Flex/R&D vacancy rate was 10.4% in Philadelphia, up 20 basis points during 2016 and up 20 as well during the fourth quarter. Metro Philadelphia’s Flex/R&D average asking rent increased 1.6% over the year to $7.44 psf, with the average effective rent up 1.8% to $6.81 psf, including fourth quarter gains of 0.5% and 0.6%, respectively. VIEW INDUSTRIAL LISTINGS >
The 111.4-million-square-foot Philadelphia general purpose, multi-tenant office market had a solid year in 2016, with moderate demand, moderate rent gains, and limited development. Reis reports a 12.0% vacancy rate in the fourth quarter of 2016, down 60 basis points during the year and down 10 for the quarter. Philadelphia’s rent gains were moderate in 2016, as the average asking rent increased 3.0% to $26.80 psf, and the average effective rent rose 3.1% to $22.02 psf. VIEW OFFICE LISTINGS >
For only the second time in the 37-year history of the Reis database, Philadelphia’s 62-million-square-foot community-neighborhood shopping center market finished a year with its vacancy rate in the double digits. Rent increases were positive but modest during 2016, continuing an ongoing period of weakness. The community-neighborhood shopping center vacancy rate was 10.0% in the fourth quarter of 2016, according to Reis, down 10 basis points over the year and down 30 from the prior quarter. Despite weak occupancy, the average rents of Philadelphia’s community-neighborhood shopping centers increased by 1.4% in 2016, as measured by both asking and effective. During the fourth quarter, the increase was 0.4% by both measures to $20.78 psf asking and $18.48 psf effective. VIEW RETAIL LISTINGS >

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Source: Data provided by Reis, inc.

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