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Current occupancy and rents of newer CBD apartment buildings suggest stability despite growing supply glut

  • ​September 2017 data from 35 multifamily properties delivered since 2013 reveal that while we are seeing supply outpace absorption in 2017, the performance of projects completed in this recent market cycle is strong. The buildings completed between 2013-2016 are all above 90 percent occupied today, with an overall occupancy of 94.9 percent across those 4,500 units. The 2015 projects – including Avenir, 3737 Chestnut, AQ Rittenhouse, and the second phase of 1900 Arch – collectively command the best rents today on a per square foot basis.
  • The 1,647 units delivered year-to-date are slightly less than half leased, with great variety: 1213 Walnut, Center City’s youngest high-end arrival, has leased 26 units (8.1%); AKA University City is 63.7% leased; and several properties, including Hanover North Broad and Bridge on Race, are between one quarter to one third leased.
  • Pricing at the 2017 deliveries remains above the five-year average despite the slow absorption. While growing supply will lower asking rents and increase concessions for the time being, steady employment growth in recent years indicates that Philadelphia can fill these units, though it will take longer without an uptick in the job creation rate.​

Source: JLL Research, Axiometrics​




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