Search
 

Consumer Spending Keeps Retail Market Stable

PHILADELPHIA-The city's average retail rents increased $0.19 per sf in 2002 and will add 2% more in 2003. The vacancy rate will peak at 9.3% in 2003, according to research by the local Marcus & Millichap office.

By Marita Thomas | Updated on December 02, 2002

PHILADELPHIA-An estimated 3.5 million sf of new retail space was delivered to the local MSA this year, and less than 2 million sf will come online in 2003, according to research by the local office of Encino, CA-based Marcus & Millichap. “Philadelphia (retail) has certainly not escaped the effects of recession, but it has not suffered as badly as other cities,” says Jeffrey R. Algatt, regional manager of the M&M office here.

Retail vacancies rose from 8.5% in 2001 to 9% this year, and the report forecasts vacancies to peak at 9.3% next year. Meanwhile, “rents continue to grow at 2% over the past 12 months,” Algatt says, “and will enjoy further increases, given the lack of new inventory coming online.”

Algatt says the average retail rental rate is estimated to end 2002 at $16.80 per sf, up slightly from $16.61 per sf in 2001. In 2003, the average rental rate is forecast to rise by an additional 2%, to $17.10 per sf.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.