Regional vacancy reaches record high levels
Regional vacancy remained in the double-digits for the second consecutive quarter. Year over year, vacancy increased 330 basis points (bps) to 11.5% − a record high. All three submarkets reported elevated vacancy. The largest uptick occurred in Southeast PA where vacancy rose 370 bps from Q3 2024 to 11.1%. The Southern New Jersey submarket recorded the next largest vacancy jump, rising 260 bps to 13.0%. Tariff policy remains unresolved, while there is overall uncertainty regarding the economic trajectory of the country. As a result, this has caused companies to make short-term decisions rather than evaluate long-term real estate plans.