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Philadelphia, PA

Apartment
Vacancy remained low in the 213,616-unit market-rate, investment grade metro Philadelphia apartment market in the first quarter of 2017, in the run up to a surge of new supply. The first quarter 2017 vacancy rate in the Philadelphia area is just 3.8%, according to Reis, essentially unchanged from the prior quarter and down 30 basis points from a year earlier. Rent gains stalled in the first quarter of 2017 following the largest annual gains since the early 2000s in 2016. The average asking rent increased 0.3% over the quarter to $1,244 per month, and the average effective rent rose just a dollar to $1,220 per month. The year-over-year gains remain large at 4.2% and 3.9%, respectively; the 2016 increases had been 4.3% asking and 4.5% effective. VIEW APARTMENT LISTINGS >
Industrial
Both the 247-million-square-foot metro Philadelphia warehouse/distribution market and the 48-million-square-foot Flex/R&D market got off to a strong start in early 2017, with positive net absorption and rent gains in excess of the overall rate of inflation. Reis reports an 8.3% vacancy rate for warehouse/distribution space in metro Philadelphia for the first quarter of 2017, down 10 basis points over the quarter and down 50 year-over-year. The rate was still 8.3% in April. During the first quarter of 2017, the warehouse/distribution market average asking rent increased 0.6% to $4.65 psf, with the average effective rent up 0.5% to $4.28 psf, followed by a gain of 0.2% by both measures in April. The first quarter Flex/R&D vacancy rate was 10.1% in Philadelphia, down 20 basis points during the first quarter of 2017 and down 30 year-over-year. The rate slipped to 10.0% in April. In the first quarter of 2017, the Flex/R&D market average asking rent increased 0.5% to $7.47 psf, with the average effective rent up 0.7% to $6.85 psf, followed by April gains of 0.3% and 0.1%, respectively. VIEW INDUSTRIAL LISTINGS >
Office
The 111.8-million-square-foot metro Philadelphia general purpose, multi-tenant office market, according to Reis, reports an 11.8% vacancy rate for the first quarter of 2017, unchanged from the prior quarter but down 40 basis points from a year earlier. While occupancy trends imply an improving and then deteriorating market, metro Philadelphia’s rent trend implies stability with consistent, modest gains. In the first quarter of 2017, the average asking rent increased 0.3% to $26.88 psf, and the average effective rent rose 0.4% to $22.09 psf. The year-over-year gains are a modest 2.0% and 2.1%, respectively, right around the overall rate of inflation. VIEW OFFICE LISTINGS >
Retail
Philadelphia’s 62.1-million-square-foot community-neighborhood shopping center market has had low double-digit vacancy for two years; but it hasn’t moved much higher than that, and rents are still rising moderately. The community-neighborhood shopping center vacancy rate was 10.0% as of the first quarter of 2017, according to Reis, unchanged from the prior quarter and down 20 basis points from a year earlier. Despite double-digit vacancy and limited expensive new space hitting the market, Philadelphia’s community-neighborhood shopping center rents continue to edge up and have even picked up steam. In the first quarter, both the average asking rent and the average effective rent increased 0.7% to $20.93 psf and $18.61 psf, respectively. The year-over-year gain was 2.2% by both measures, more than the full-year increase for any year since 2007. VIEW RETAIL LISTINGS >

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Source: Data provided by Reis, inc.

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