The Philadelphia industrial space vacancy rate held steady at 8.6% in the second quarter 2014, according to the CoStar Group’s newest market trend report.
The second quarter Philly industrial space vacancy rate was unchanged over the first quarter, CoStar’s Second Quarter 2014 Market Report said. Net absorption totaled positive 3,596,954 square feet of industrial space in Philadelphia in the second quarter as compared to positive 3,102,097 square feet in the first quarter 2014, CoStar reported. The market for industrial space in Philly saw an increase in vacant sublease space, ending the quarter at 1,491,782 square feet, the report noted.
According to the CoStar report, tenants moving into large blocks of Philly industrial space in the second quarter 2014 included: Wal-Mart (Distribution Center), moving into 1,200,000 square feet of Philadelphia industrial space at 2785 Commerce Center Boulevard; Ocean Spray, moving into 980,000 square feet of industrial space in Philadelphia at 9645 West Hills Court, and Kane Warehousing, Inc., moving into 955,935 square feet of industrial space in Philly at 6 Kane Lane.
Philly industrial space rental rates stood at $4.51 at the end of the second quarter, a decrease over the first quarter of 2014, according to CoStar.
There were a total of eight buildings that delivered to the Philly industrial space market in the second quarter, representing 3,127,992 square feet of industrial space in Philadelphia. An additional 8,276,767 square feet of industrial space in Philly remained under construction at second quarter’s end.
The CoStar report compared the second quarter 2014 results in the Philadelphia industrial space market with the U.S. National Industrial vacancy rate, which experienced a drop to 7.7% from the first quarter, with net absorption amounting to positive 53.93 million square feet in the second quarter. The report also noted that average rental rates nationally rose to $5.44 in the second quarter, and that 229 industrial buildings delivered to the national market, totaling nearly 28.6 million square feet.
For more information about industrial space in Philadelphia or any Philadelphia commercial properties, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@wolfcre.com) at Wolf Commercial Real Estate, a premier Philadelphia commercial real estate broker that specializes in Philadelphia commercial real estate listings and services.
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