Philadelphia Office Market
| Average Asking Rent (Price/SF) | $30.87 |
| Vacancy Rate (%) | 16.7% |
| Net Absorption (SF) | -909,635 |
The second quarter of 2021 saw a continued disruption of Philadelphia’s office workforce due to COVID. While unemployment numbers have declined, and mask mandates were lifted in May and June of 2021, there has only been a gradual return to the office by companies in the Philadelphia MSA. However, the green shoots of economic recovery are becoming apparent, particularly in the downtown market. According to Center City District’s June 2021 report, overall pedestrian volumes increased by 7.0% in the month of May and SEPTA ridership increased by 9.0%. Payroll employment for the Philadelphia MSA increased by 12.4% in the second quarter, the largest gain since the start of the pandemic. By comparison, national payroll employment grew by 10.9%.
Download Philadelphia Office Market Report 2Q21Philadelphia Industrial Market
| Average Asking Rent (Price/SF) | $8.22 |
| Vacancy Rate (%) | 4.9% |
| Net Absorption (SF) | 777,477 |
The greater Philadelphia industrial market, inclusive of Southeastern Pennsylvania, Southern New Jersey and Delaware, experienced a slight uptick in vacancy this quarter, going from 4.7% last quarter to 4.9% currently. Despite this slight increase, the rate is still 20 basis points better than a year ago at this time when it stood at 5.1%. The increase since last quarter can be attributed to the completion of some newly developed speculative space. Asking rental rates for all property types climbed to an average of $8.22 per square foot (PSF), up 2.5% from last quarter; 18.1% higher than a year ago. Rental rates for warehouse and distribution space also increased this quarter to an average of $5.86 PSF, up 11.2% from the second quarter of 2020. Year-to-date absorption increased to positive 2,217,555 SF. Construction activity continues to be robust with 14.3 MSF currently in the pipeline set to deliver over the next 12-18 months.
Download Philadelphia Industrial Market Report 2Q21