Retail Operations in Philadelphia Recover Ahead of Nation
Posted October 26, 2011
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Operations in Philadelphia continue to improve as a stable housing market sustains consumer confidence and solid retail sales spur tenant demand, according to the Retail Third Quarter Retail Research Market Update for the Philadelphia area from Marcus & Millichap.
Single-family home foreclosures are steadily slowing down, with the number of filings decreasing by 40 percent from a year ago, while home values are beginning to find equilibrium in the metro.
Some retailers who followed rooftops into the suburbs continue to perform well as elevated household incomes supported healthy retail spending in Gloucester, Montgomery, and Bucks counties. Shopping center vacancy in these areas decreased an average of 50 basis points over the last year as retail sales increased nearly 8 percent, a trend that will continue in the coming months.
In the urban core, operations will remain tight as heavy foot traffic will attract national retailers to infill properties near prime shopping districts, including Center City and University City. As tenant demand strengthens, available space will shrink, applying upward pressure to rents.
To see the full report, click on the "Full Screen" button on the PDF below.
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