I-81/78 Corridor’s market fundamentals are strong despite worries of future recession
Fears of the economy entering a recession have yet to affect market fundamentals in the I-81/78 Corridor. Vacancy is at record-low levels. Year over year, the overall vacancy rate fell 340 basis points (bps) to 3.5%, with the largest decline in the Northeast submarket. Of the three submarkets tracked, the Northeast vacancy rate fell 440 bps over 12 months to 5.5%. However, in the Central Pennsylvania submarket, the vacancy rate of 2.2% is the tightest. Overall, rent trajectory moved upward, attributed to the large amount of new construction delivered to the market. Year over year, the average asking rental rate increased almost 41% to $6.95 per square foot (psf) NNN . Class A rates range between $7.75 and $10.00 psf NNN across the I-81/78 Corridor.