Continued Occupancy Gains in Both the Greater Philadelphia and I-81/78 Corridor Industrial Markets at the Close of 2016

Philadelphia, PA (February 1, 2017) — Newmark Grubb Knight Frank (NGKF) released its fourth quarter 2016 market reports for the Greater Philadelphia and the I-81/78 Corridor industrial markets this week. The reports detail occupancy gains across both major markets, which surpassed the prior year’s totals. Rents for warehouse/distribution and flex properties rose in Greater Philadelphia and the I-81/78 Corridor markets. Construction was down in Greater Philadelphia, but increased within the I-81/78 Corridor.

Greater Philadelphia’s industrial market posted 9.9 million square feet in positive absorption for 2016, which is more than 3.0 million square feet recorded for 2015. The Southern New Jersey industrial market accounted for 5.6 million square feet of the region’s total absorption with tenant activity centered on the Burlington County submarket. According to Kurt Montagano, NGKF senior managing director, “Southern New Jersey’s warehouse sector experienced explosive growth thanks to e-commerce. The upcoming year will see more speculative warehouse projects break ground either fully pre-leased or mostly spoken for.” During the fourth-quarter 2016, three speculative projects started construction in Southern New Jersey; all delivered pre-leased.

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