Philadelphia Office Market
Average Asking Rent (Price/SF) | $30.63 |
Vacancy Rate (%) | 17.2% |
Net Absorption (SF) | -149,117 |
In the fourth quarter of 2022, Philadelphia experienced a slight uptick of workers returning to the office. As of December 2022, according to Kastle Systems’ weekly occupancy barometer, 41.5% of Philadelphia’s workforce have returned to the office, up from 40.7% in September of 2022. Despite the improvement since last quarter, Philadelphia still lags the current major metro average workforce return rate of 48.2%. Many Philadelphia area companies continue to operate under a hybrid work model to accommodate their employees. As Philadelphia heads into the winter months of the new year, rising cases of COVID-19 could continue to be problematic for companies trying to return their workers to the office more permanently.
Download Philadelphia Office Market Report 4Q22
Philadelphia Industrial Market
Average Asking Rent (Price/SF) | $8.27 |
Vacancy Rate (%) | 3.9% |
Net Absorption (SF) | 1,596,537 |
Activity in the Philadelphia industrial market was vigorous in 2022. The occupancy rate across all tracked markets and submarkets remains above 96%. Year-to-date absorption closed out the year at 13.3 million square feet of positive absorption, topping 2021’s total by nearly 3 million square feet. Asking rental rates climbed further northward in 2022 to an average asking rate of $8.27/SF, up from $7.66/SF a year ago. Construction activity remains robust, with 26.0 million square feet under construction and 11.3 million square feet of new product delivered in 2022.
Download Philadelphia Industrial Market Report 4Q22