MARKET TRENDS
- Vacancy increased 320 basis points (bps) from one year ago —with the largest year-over-year change reported in Southern NJ, where vacancy rose 550 bps to 10.8%.
- Despite the uptick in vacancy across the region, quarterly net absorption was positive 1.8 million square feet (msf); Northern DE recorded the largest amount of positive absorption of the three submarkets —752,695 sf.
- Construction deliveries were up compared to the end of 2022; however, new groundbreakings slowed as developers contend with higher interest rates and weakening tenant demand.