Concord Pike retail rents are up
Concord Pike was among the trade areas that had the most significant annual rent appreciation in the third quarter, according to CBRE Research. Other popular areas in the region included Princeton-South Brunswick, Trexlertown and Lancaster.
Reduced generally availability results in rent growth, although areas such as Trexlertown and Lancaster and York are growing due to attractive demographics, income growth and infrastructure improvements, according to CBRE.
In the region, the highest average asking lease rates are in King of Prussia and the Main Line, but Concord Pike is third on the list. Christiana is just above the middle of the pack. The lowest rates in the district are in Wilkes-Barre and Scranton.
A recent CBRE survey showed affordability was no longer one of the top five most important lease characteristics for retailers, and that prompted owners of some strip centers and neighborhood shopping centers to renovate.
Average asking rents have started to decline for Class B and Class C properties.
Finished properties coming on line in the third quarter boosted total retail inventory in the region by more than 1.3 million square feet. King of Prussia Mall, with its expansion of the court and the plaza, now is the largest mall in the U.S.
The projected third-quarter sales growth for the Philadelphia region is 2.4 percent. The sales growth forecast for the region was adjusted down from 6 percent to 3.6 percent for the fourth quarter, possibly due to rising uncertainty with the election and the business cycle.
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