Suburban Philadelphia Industrial Market | Overview

Key Trends

  • The vacancy rate increased slightly from 5.1 to 5.2 percent in the second quarter, the same level as at the end of 2017.
  • Net absorption has lagged year-to-date, totaling just under 115,000 square feet.
  • The weighted average asking rent increased to $6.23 per square foot, triple net, after decreasing in the first quarter.
  • Investment activity was up sharply in the second quarter after a slow start to the year. One-off opportunities are fewer and have contributed to continuing lower cap rates from aggressive bidding.

Vacancy in the suburban counties has essentially been flat in 2018. Absorption has been artificially low as some older manufacturing facilities came back on the market, and the lack of supply constrained activity.