In the 12-month period ending March 2024, rent growth in the Philadelphia metro area was below average, with an increase of 0.4%. Meanwhile, stabilized vacancy has increased 30 basis points since March 2023 to 4.6%. In the city of Philadelphia, absorption has significantly increased in the 12-month period ending March 2024, similar to other major cities in the Mid-Atlantic, such as Baltimore City and the District.
First QUARTER 2024 HIGHLIGHTS
The metro area Class A stabilized vacancy is up 30 basis points from a year ago to 4.6% at March 2024. Southern New Jersey reported the lowest stabilized vacancy rate at 2.0%.
- Suburban Pennsylvania stabilized vacancy increased by 100 basis points over the year to 4.4%.
- Stabilized vacancy in Southern New Jersey increased20 basis points from 1.8% in Q1 2023 to 2.0% in Q1 2024.
- Stabilized vacancy decreased by 110 basis points in the City of Philadelphia to 5.8%.
Southern New Jersey led in rent increases in the 12-month period ending March 2024. Here are the effective rent changes by sub-area since Q1 2023:
- Southern New Jersey up 1.6%
- Suburban Pennsylvania up 0.3%
- City of Philadelphiaup0.1%
Metro-wide, effective rents increased 0.4% in the 12-month period ending March 2024. Average metro-wide effective rents at first quarter 2024 are $2,222, or $2.43 per SF. Effective rents average $2,337 ($2.84 per SF) for the city of Philadelphia (primarily in mid- and high-rise product) and $2,162 ($2.21 per SF) for the suburbs (primarily in low- and mid-rise product).
Delta Associates, the research affiliate of Transwestern, is a firm of experienced professionals which has been providing consulting and subscription data services to the commercial real estate industry for over 40years.
