Northeastern Pennsylvania -
The office vacancy rate in Northeastern Pennsylvania inched up to 8.5% in the second quarter, a marginal rise from 8.4% in Q1, though still below year-end 2024 levels. The shift reflects continued sluggishness in tenant demand. Class A buildings saw modest gains in occupancy, but Class B properties experienced a rise in vacancy. Leasing activity remains constrained, with only a handful of deals under 10,000 square feet across both quarters with healthcare services tenants being the most active.
However, most new vacancies also came in sub-10,000-square-foot blocks. Sales activity is showing renewed traction. A narrowing gap between seller expectations and buyer offers has helped close more deals, as owners adjust pricing to meet market realities. Accordingly, sale prices per square foot have declined while cap rates have moved higher.
Key Takeaways
• Overall vacancy rose slightly to 8.5%, up from 8.4% in Q1
• An occupancy loss in Class B buildings outpaced gains in Class A space for the quarter. However, there was an overall gain YTD
• The average asking rent rent increased for both Class A and Class B buildings
• Sales volume increased as sellers adjust pricing expectations
Click the link below to download the report!
