Total absorption for the region dropped to a negative 2.6 million sf, andthe vacancy rate rose to 7.7%, up from 7.3% the previous quarter.
A quick drop-off in speculative construction during the last half of theyear "helped stabilize vacancy rates toward the end of the year," Guerrieri says.By year-end, just 566,000 sf was still under construction, far below thepeak of construction in December 2000, when 4.5 million sf of industrial spacewas being built.
At 4.7%, Philadelphia County's industrial vacancy rate was the lowest in thearea at the end of last year, with Chester County's 4.8% rate not farbehind.
At 11.9%, the Delaware County industrial vacancy rate was the highest in thearea. Construction was at a complete standstill in both Philadelphia andDelaware counties by year-end.
The average asking rental rate in Chester County stood at $6.42 per sf, thehighest in the area, compared with an average of $3.62 per sf inPhiladelphia County, the lowest asking rate in the region, according to Grubb & EllisResearch.
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