A comprehensive examination of the Philadelphia apartment market suggests that the major concentrations of competitive apartment space are located in the Center City submarket, amounting to 26,276 units and 11.0% of the metropolitan inventory, followed by Camden West, with a 7.5% share, and Torresdale/Bensalem (5.1%). Since the beginning of Q2 2012, the fastest growing area has been the Center City submarket, adding 10,824 units over that period, or 28.9% of total metropolitan apartment completions.
Distribution / Warehousing
The Philadelphia warehouse/distribution market is comprised of 265.0 million square feet in nine geographic concentrations ranging in size from the 57.0 million square foot Philadelphia County submarket to the Upper Bucks County submarket, which amounts to 13.0 million square feet. In the ten-year period beginning with Q4 2012, the Burlington County submarket has experienced the greatest introduction of new inventory, 10.4 million square feet, amounting to 47.4% of all new competitive stock added to the market.
Flex / R&D
A comprehensive assessment of the Philadelphia Flex/R&D market reveals that the dominant concentrations of competitive Flex/R&D space are located in the Philadelphia County submarket, amounting to 13.0 million square feet and 26.7% of the metropolitan inventory, followed by Montgomery County, with a 18.2% share, and Chester County (13.5%). Since the beginning of Q4 2012, the fastest growing area has been the Philadelphia County submarket, adding 626,000 square feet over that period, or 52.2% of total metropolitan Flex/R&D completions.
Office
The Philadelphia office market is comprised of 115.2 million square feet in sixteen geographic concentrations ranging in size from the 38.1 million square foot Center City submarket to the South Philadelphia submarket, which accounts for 1.2 million square feet. In the ten-year period beginning with Q4 2012, the West Philadelphia submarket has experienced the greatest introduction of new inventory, 1.2 million square feet, amounting to 26.4% of all new competitive stock added to the market.
Retail
A comprehensive examination of the Philadelphia retail market indicates that the major concentrations of competitive retail space are located in the Montgomery County submarket, amounting to 11.6 million square feet and 18.4% of the metropolitan inventory, followed by Philadelphia County, with a 18.2% share, and Bucks County (14.5%). Since the beginning of Q4 2012, the fastest growing area has been the Bucks County submarket, adding 436,000 square feet over that period, or 27.4% of total metropolitan retail completions.
Market Trends
2022 Population
5,403,650
Since
2022
Population Change
+0.08%
Household Average Income
$193,636.00
Number of Households
2,126,040
Employment
White/Blue Collar Jobs
31%
Office (2022)
12%
Industrial (2022)
Market Trends
Apartment
Inventory
Units/SF
Q1 2022
Q2 2022
Total
238,035
238,240
Completions
463
205
Conversions*
0
0
2022 Q2 Rent
Asking Change†
3.2%
Effective Change†
3.2%
Inventory: Constrabsorp
Q1 2022:
0.8 Ratio
Q2 2022:
1 Ratio
Rental Costs/Lease Rates‡
Asking
Q1 2022:
$1,624.68
Q2 2022:
$1,676.19
Effective
Q1 2022:
$1,562.71
Q2 2022:
$1,612.57
Gross Revenue
Q1 2022:
$1,559.28
Q2 2022:
$1,608.79
Absorption/Occupied Stock
Q1 2022:
0.2%
Q2 2022:
0.1%
Stock Net Absorption (Units)*
Stock
*Units that have been converted from a non-market rate multifamily subtype to a market rate subtype. †Percent change from the previous time period. ‡For Apartment properties, rent is a weighted average quoted as monthly rent per unit.
Market Trends
Distribution / Warehousing
Inventory
Units/SF
Q1 2022
Q2 2022
Total
263,350,000
264,261,000
Completions
597,000
911,000
Conversions*
0
0
2022 Q2 Rent
Asking Change†
6%
Effective Change†
6.5%
Inventory: Constrabsorp
Q1 2022:
0.2 Ratio
Q2 2022:
0.3 Ratio
Rental Costs/Lease Rates‡
Asking
Q1 2022:
$5.69
Q2 2022:
$6.03
Effective
Q1 2022:
$5.40
Q2 2022:
$5.75
Gross Revenue
Q1 2022:
$5.42
Q2 2022:
$5.79
Absorption/Occupied Stock
Q1 2022:
1%
Q2 2022:
1.1%
Stock Net Absorption (Units)*
Stock
*Units that have been converted from a non-market rate multifamily subtype to a market rate subtype. †Percent change from the previous time period. ‡For Retail and Industrial properties, rent is a weighted average quoted as annual NNN rent per square foot.
Market Trends
Flex / R&D
Inventory
Units/SF
Q1 2022
Q2 2022
Total
48,830,000
48,830,000
Completions
0
0
Conversions*
0
0
2022 Q2 Rent
Asking Change†
5.3%
Effective Change†
5.6%
Inventory: Constrabsorp
Q1 2022:
0 Ratio
Q2 2022:
0 Ratio
Rental Costs/Lease Rates‡
Asking
Q1 2022:
$8.64
Q2 2022:
$9.10
Effective
Q1 2022:
$8.09
Q2 2022:
$8.54
Gross Revenue
Q1 2022:
$8.18
Q2 2022:
$8.66
Absorption/Occupied Stock
Q1 2022:
0%
Q2 2022:
0.6%
Stock Net Absorption (Units)*
Stock
*Units that have been converted from a non-market rate multifamily subtype to a market rate subtype. Negative value indicates a loss of market rate units, positive value indicates a repurposing to market rate rental units. †Percent change from the previous time period. ‡For Retail and Industrial properties, rent is a weighted average quoted as annual NNN rent per square foot.
Market Trends
Office
Inventory
Units/SF
Q1 2022
Q2 2022
Total
115,242,000
115,242,000
Completions
0
0
Conversions*
0
0
2022 Q2 Rent
Asking Change†
-0.2%
Effective Change†
-0.4%
Inventory: Constrabsorp
Q1 2022:
0 Ratio
Q2 2022:
0 Ratio
Rental Costs/Lease Rates‡
Asking
Q1 2022:
$28.81
Q2 2022:
$28.74
Effective
Q1 2022:
$23.34
Q2 2022:
$23.24
Gross Revenue
Q1 2022:
$24.49
Q2 2022:
$24.33
Absorption/Occupied Stock
Q1 2022:
-0.5%
Q2 2022:
-0.4%
Stock Net Absorption (Units)*
Stock
*Units that have been converted from a non-market rate multifamily subtype to a market rate subtype. †Percent change from the previous time period. ‡Office properties are a weighted average quoted as an annual gross rent per square foot.
Market Trends
Retail
Inventory
Units/SF
Q1 2022
Q2 2022
Total
34,396,000
34,396,000
Completions
0
0
Conversions*
0
0
2022 Q2 Rent
Asking Change†
0.1%
Effective Change†
0.1%
Inventory: Constrabsorp
Q1 2022:
0 Ratio
Q2 2022:
0 Ratio
Rental Costs/Lease Rates‡
Asking
Q1 2022:
$22.76
Q2 2022:
$22.78
Effective
Q1 2022:
$20.12
Q2 2022:
$20.15
Gross Revenue
Q1 2022:
$20.07
Q2 2022:
$20.10
Absorption/Occupied Stock
Q1 2022:
0%
Q2 2022:
0.1%
Stock Net Absorption (Units)*
Stock
*Units that have been converted from a non-market rate multifamily subtype to a market rate subtype. †Percent change from the previous time period. ‡For Retail and Industrial properties, rent is a weighted average quoted as annual NNN rent per square foot.