PHILADELPHIA, PA—The vacancy rate for the Philadelphia MSA apartment market increased to 3.9 percent in the fourth quarter of 2017, due in large part to the addition of 4,040 new units in 2017, according to Cushman & Wakefield. The commercial real estate services firm's Philadelphia research team released its fourth-quarter 2017 Multifamily Marketbeat report for the region, which forecasts strong construction activity and positive absorption to continue throughout 2018.
“The more-than-4,000 new units delivered in 2017 is the highest annual total on record in the Philadelphia MSA,” says Jared Jacobs, Cushman & Wakefield's research manager. “However, even with the increase in new product, net absorption in 2017 was positive, with 3,516 units absorbed last year.”
Average asking rental rates increased by four percent year-over-year, to $1,290 per unit, vs. $1,241 at year-end 2016. Effective rents for the fourth quarter also increased from $1,220 in 2016 to $1,246 per unit, a 2.1-percent increase year-over-year.
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Steve Lubetkin
Steve Lubetkin is the New Jersey and Philadelphia editor for GlobeSt.com. He is currently filling in covering Chicago and Midwest markets until a new permanent editor is named. He previously filled in covering Atlanta. Steve’s journalism background includes print and broadcast reporting for NJ news organizations. His audio and video work for GlobeSt.com has been honored by the Garden State Journalists Association, and he has also been recognized for video by the New Jersey Chapter of the Society of Professional Journalists. He has produced audio podcasts on CRE topics for the NAR Commercial Division and the CCIM Institute. Steve has also served (from August 2017 to March 2018) as national broadcast news correspondent for CEOReport.com, a news website focused on practical advice for senior executives in small- and medium-sized companies. Steve also reports on-camera and covers conferences for NJSpotlight.com, a public policy news coverage website focused on New Jersey government and industry; and for clients of StateBroadcastNews.com, a division of The Lubetkin Media Companies LLC. Steve has been the computer columnist for the Jewish Community Voice of Southern New Jersey, since 1996. Steve is co-author, with Toronto-based podcasting pioneer Donna Papacosta, of the book, The Business of Podcasting: How to Take Your Podcasting Passion from the Personal to the Professional. You can email Steve at [email protected].
