Other trends pointing to a leveling off: direct vacancy ratesinside the Greater Philadelphia industrial market rose 6.9%--upslightly from 6.39% at the close of third quarter 2007. By theclose of 2007, its annual positive net absorption figures finishedat just over 3.9 million-sf--less than when compared to the sametime a year before.
This confluence of factors has led the industry to approach 2008with a "lie and wait" attitude. "The upcoming year will most likelybring a slow, but steady growth across the industrial propertiessector," says CBRE managing director Carl Gersbach. "However,challenges such as growing construction costs, rising financingcosts, higher cap rates and relatively flat rents will certainlyhave an impact on the marketplace."
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
