Vacancy within the Metro Philadelphia market remained steady at 4.4% in Q3 2019, up 10 basis points from 4.3% in Q2 2019. We expect vacancy to fluctuate as new development hits the market.
Asking rents in the Metro decreased to $5.98 down from $6.31 the previous quarter. The decrease in asking rents were attributed mostly to fluctuating rents in the R&D Flex space across the Metro.
The Metro saw over 2.5 million sq. ft. of construction starts in Q3 2019. Over 7.4 million sq. ft. of development remained under construction, a new record high for construction activity.
Investment sales in the Philadelphia Metro continued to see growth slow as $170 million of investment occurred in the Philadelphia Metro. Private capital made up 50% of the buyer composition with foreign and institutional capital making up the rest.