PHILADELPHIA-The city's economy's continues to gain traction that will support retail operations in the coming quarters, according to a report released by brokerage firm Marcus & Millichap.
The brokerage firm predicts that retail demand will grow slowly once again this year that will result in a 30-basis point decline in the retail vacancy rate to 7.3% by the end of this year. The firm also expects new development will moderately ease to 900,000 square feet of retail space in 2013, slightly lower than the 990,000 square feet that came on line in 2012.
“The large Philadelphia investment market is attracting buyers from up and down the East Coast. Favorable pricing compared with other major cities will remain a draw for investors through the end of the year,” the report states. “Although some single-tenant investors have moved to the sidelines waiting for the recent rise in interest rates to move cap rates more significantly, other investors have stepped in to fill the gap.”
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