Philadelphia Office Market
| Average Asking Rent (Price/SF) | $30.93 |
| Vacancy Rate (%) | 17.3% |
| Net Absorption (SF) | 482K |
As of the fourth quarter of 2021, the Philadelphia office market continues to face return-to-office issues related to the COVID-19 pandemic. After struggling with the Delta variant in the late summer and fall of 2021, the threat of a new variant known as Omicron has once again forced businesses to reassess the reboarding plans many had for after the new year. According to Kastle Systems recent occupancy data, 37.2% of Philadelphia’s workforce has made a return to the office which is below the major metro average of 39.8%. More positively, this occupancy data is 300 basis points better than the 34.2% reported by Kastle Systems in the third quarter of 2021, so people are returning to the office, albeit slowly.
Download Philadelphia Office Market Report 4Q21Philadelphia Industrial Market
| Average Asking Rent (Price/SF) | $7.66 |
| Vacancy Rate (%) | 4.8% |
| Net Absorption (SF) | 1,473,207 |
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.
Download Philadelphia Industrial Market Report 4Q21