Inventory Fails to Keep Up With Demand

Wayne, PA (October 29, 2018) — Newmark Knight Frank (NKF) released its third-quarter 2018 industrial market reports for Greater Philadelphia and the I-81/78 Corridor. The combined markets closed the period with 5.0 million square feet of positive absorption. Warehouse properties accounted for 4.5 million square feet of this quarter’s occupancy gains. Overall vacancy declined 10 basis points to 6.2 percent, while warehouse vacancy decreased 20 basis points to 7.0 percent. 4.3 million square feet delivered during the third quarter with most of it centered in the I-81/78 Corridor market.

The Southeastern Pennsylvania market closed the third quarter of 2018 with 263,684 square feet in negative absorption. Total vacancy for all property types increased 20 basis points from the second quarter to 5.9 percent. Philadelphia County and Montgomery County were the only submarkets in Southeastern Pennsylvania with quarterly positive absorption reporting occupancy gains of 31,748 square feet and 111,795 square feet, respectively. During the third quarter, AgustaWestland began its move into 47,750 square feet at 9230-9250 Ashton Road in Philadelphia County. The tenant will occupy its remaining space in October. In Montgomery County, Cambria moved into 65,000 square feet at 780 3rd Avenue.

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