Year End 2018 | Eastern Pennsylvania, Southern New Jersey, and Delaware

Key Trends:

  • The regional office market vacancy has been fluctuating by quarter and by submarket and ended 2018 at 12.2%.
  • Year-to-date absorption approached 2 million square feet, a substantial portion of which was attributed to the completion of the Comcast Technology Center.
  • Asking rents increased by 3.1% from the end of the second quarter to a regional average of $27.04 per square foot, full service. The average Class A rent increased by 3.0% and the Class B average by 2.6%.
  • Suburban investment volume remained high, while there was a pause in CBD sales activity.

Results were mixed in the regional markets during the last two quarters of 2018. In what has become a familiar theme, competition between buildings, submarkets and other states led to an occupancy tug of war, and generally flat absorption in the suburban markets.