Key Market Trends
- The vacancy rate decreased from 10.9 to 10.8% during the last two quarters of 2018.
- Occupancy gains from pre-committed new construction and backfilling of larger vacancies boosted absorption.
- The weighted average increased sharply during the fourth quarter to $32.51 per square foot, full service, mainly due to the delivery of new space.
- Investment activity slowed during the third and fourth quarters, but the sale of 1735 Market Street is likely to close in early 2019.
CBD Philadelphia had a stronger second half of the year. The vacancy rate decreased, but was still up from the end of 2017. Market West and University City had occupancy gains during 2018. Although Market East/Independence Mall had had a net occupancy loss for the year, the trend was was reversing during the third and fourth quarters.