Newmark Releases 4Q21 Industrial Market Reports
Newmark Real Estate (Newmark) is pleased to release its fourth-quarter Greater Philadelphia and I-81/78 Industrial Market Reports.
Greater Philadelphia Industrial Market
Activity in the Greater Philadelphia industrial market, inclusive of Southeastern Pennsylvania, Southern New Jersey and Delaware, remains healthy. The overall vacancy rate at year end 2021 was 4.8%, up 40 basis points from the third quarter and down 20 basis points compared with the fourth quarter of 2020. Net absorption for calendar year 2021 climbed to 10.6 million square feet, a 71.0% increase from year-end 2020. Average asking rents for warehouse and distribution space also increased year-over-year, rising from $5.20/SF year-end 2020 to $5.64/SF. Construction activity remains robust with 20.0 million square feet currently in the pipeline; nearly 10.0 million of which is centered in Southern New Jersey.
Read Philadelphia Report HERE
Activity in the I-81/78 Industrial Corridor remains robust. Absorption climbed to an all-time high with 19.6 million square feet in 2021. Overall vacancy declined to 7.2% in the fourth quarter, a 260-basis-point drop from the 9.8% rate reported a year ago. Asking rental rates for all property types continue to soar, increasing to an average of $5.16/SF, up by 6.6% from a year ago when the average rate was $4.84/SF. Construction activity remains strong with 18.6 million square feet underway, 96.0% of which is scheduled to deliver in 2022. Just over 10.0 million square feet of new construction delivered in 2021; 2.6 million square feet of that total was introduced in the fourth quarter.
Read I-81 Report HERE