Philly Retail Space Vacancy Rate Stable in Third Quarter

research-information-graphic-phlThe vacancy rate for Philly retail space remained stable in the third quarter 2014, a new market report from the CoStar Group says.

The Philadelphia retail space vacancy rate stood at 5.9% at the end of the third quarter — the same rate for retail space in Philly at the end of the second quarter 2014, CoStar noted in its Third Quarter 2014 Market Report.

Net absorption of retail space in Philadelphia in the third quarter was positive 177,364 square feet, compared to positive 515,170 square feet in the previous quarter.  Vacant sublease space in the Philadelphia retail space market was down by 5,476 square feet in the third quarter, according to the CoStar report.

Several tenants moved into large blocks of retail space in Philadelphia in 2014, including: ShopRite, moving into 90,000 square feet of Philly retail space at Wishing Well Plaza; Giant Food, moving into 66,472 square feet of retail space in Philly at Ephrata Marketplace; and Burlington Coat Factory, moving into 62,224 square feet of Philadelphia retail space at 1537 Bethlehem Pike.

Quoted rental rates for retail space in Philadelphia declined from the second quarter, ending the third quarter at $13.96 per square foot per year, CoStar reported.

Retail space in Philly grew by 80,793 square feet in the second quarter with the delivery of five retail buildings, the report said.  An additional 389,251 square feet of Philadelphia retail space remained under construction at quarter’s end, CoStar noted.

In comparison to second quarter 2014 results in the Philly retail space market, the U.S. National Retail vacancy rate dropped to 6.3% from the second quarter, according to the report.  Net absorption in the national market stood at positive 26.48 million square feet in the second quarter, CoStar said.  Average rental rates for the national market grew to $14.84.  A total of 542 retail buildings delivered to the market, amounting to more than 13.9 million square feet of new national retail space.

For more information about Philly retail space or any Philadelphia commercial properties, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@wolfcre.com)or Lee Fein (lee.fein@wolfcre.com) at Wolf Commercial Real Estate, a leading Philadelphia commercial real estate brokerage firm with expertise in retail space in Philly.

Wolf Commercial Real Estate is a Philadelphia commercial real estate broker that provides a full range of Philadelphia commercial real estate listings and services, marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Wolf Commercial Real Estate, a Philadelphia commercial real estate broker that specializes in Philadelphia commercial real estate listings and services, provides unparalleled expertise in matching companies and individuals seeking new retail space in Philadelphia with the Philadelphia commercial properties that best meets their needs.  As experts in Philadelphia commercial real estate listings and services, the team at our Philadelphia commercial real estate brokerage firm provides ongoing detailed information about Philadelphia commercial properties to clients and prospects to help them achieve their real estate goals.  If you are in the market for Philadelphia retail space for sale or lease, Wolf Commercial Real Estate is the Philadelphia commercial real estate broker you need — a strategic partner who is fully invested in your long-term growth and success.

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