Logistics providers prominent in third quarter leasing activity
Logistics providers executed some of the largest transactions in the third quarter, particularly in the Southern NJ market. Lecangs leased 845,280 square feet (sf) at 1900 River Road, US Elogistics expanded its presence at Mansfield Logistics Park, taking an additional 806,000 sf, and Zenith Logistics leased 336,700 sf at 2057 US Highway 322. In addition, Veho took 148,611 sf at 2951 Orthodox Street in Southeast PA.
The Philadelphia region’s overall vacancy rate increased 10 basis points (bps) quarter over quarter to 8.4%. Southern NJ’s vacancy rate rose 40 bps from the second quarter, while Northern DE saw a 30-bps uptick to 6.5%. However, Southeast PA recorded a decrease in vacancy, down 10 bps from the prior quarter to 7.5%.