Vacancy continues its ascent amid slowing tenant activity
Vacancy increased 20 basis points (bps) from the second quarter of 2023 to 5.1% and 160 bps when compared with one year ago. Retail and e-commerce tenants readjusted their space requirements considering the softening economy. Vacancy increased across all three market clusters with more new construction deliveries. Quarter over quarter, Central PA rose 30 bps to 4.2%, Lehigh Valley increased 20 bps to 5.7% and Northeast PA increased 30 bps to 6.5%.