Philadelphia Office Market
| Average Asking Rent (Price/SF) | $30.87 |
| Vacancy Rate (%) | 17.4% |
| Net Absorption (SF) | -218,623 |
The Philadelphia regional office market, while showing signs of improvement, continues to struggle with return to office concerns. The recent variant of COVID-19, Omicron, has waned since January and February, yet a forceful back to the office push by employers has not materialized. According to the Kastle Systems’ March 2022 occupancy barometer, the Philadelphia Metropolitan area has seen 37.4% of its workforce return to the office. This remains below the current major metro average of 40.0%. Also, compared to the fourth quarter of 2021, the return to office average for Philadelphia only increased by 20 basis points, up from 37.2%.
Download Philadelphia Office Market Report 1Q22Philadelphia Industrial Market
| Average Asking Rent (Price/SF) | $7.83 |
| Vacancy Rate (%) | 4.1% |
| Net Absorption (SF) | 4,508,457 |
Activity in the Greater Philadelphia industrial market, inclusive of Southeastern Pennsylvania, Southern New Jersey and Delaware, remains strong. E-commerce sales and robust consumer spending continues to drive the need for warehouse space. Building values continue to escalate, as a significant amount of capital is focused on the industrial sector compared to other commercial product types. The cost of land also continues to soar to record heights, which has not deterred developers and tenants from purchasing land for new warehouse facilities. Due to land constraints, particularly in the Southern New Jersey industrial market, tenants are less focused on cost and more on securing the right land option to suit their requirements. While rising fuel prices have not yet dissuaded local tenants from taking warehouse and distribution space, companies are becoming more conscious of possible disruptions in the supply chain. One concern has been the shortage of available labor, which has prompted an increasing number of companies to evaluate machine automation as a means of improving output.
Download Philadelphia Industrial Market Report 1Q22