Central PA reported the lowest vacancy in the I-81/78 Corridor market
Quarter over quarter, the I-81/78 Corridor market’s vacancy rate increased only 10 basis points (bps) to 3.6%. However, vacancy is still at record-low levels. Central PA recorded the lowest vacancy rate (1.7%) of the three submarkets —declining 240 bps from the beginning of the year. Lehigh Valley and Northeast Pennsylvania’s vacancy rates increased 40 bps and 100 bps, respectively, from the third quarter. Overall, the average asking rental rate for the I-81/78 Corridor ($6.99 per square foot (psf)) remained flat from the third quarter. However, it rose almost 34.0% from the beginning of 2022. Lehigh Valley reported the highest average rent of the three submarkets, finishing the quarter at $7.75 psf. New construction in the I-81/78 Corridor commands asking rents between $7.00 psfand $11.00 psf, triple net.