Q4 2018 Philadelphia Metropolitan Industrial MarketView
Vacancy within the Metro Philadelphia market remained steady at 5.1% from Q3 2018’s historic low of 4.9%. This trend is expected to continue throughout the coming quarters, but, as new product is added to the market, expect vacancy rates to remain largely steady with some variances.
Lease rates lessened slightly in Q4 2018 at $5.72 from $5.86 in Q3 2018 likely due to a lack of available, newer space rather than market pricing. As new product enters the market expect rents to rise if new available speculative space remains on the market.
Developers in Southeastern PA remained optimistic as 1.5 million sq. ft. were under construction in the market with Bucks County accounting for over 1.0 million sq. ft. alone.
More than $297 million of investment sales occurred in the Metro Philadelphia market in Q4 2018. Private investors made up 48% of the sales volume, and foreign investment accounted for 13.6%, largely from Singapore investors.