Philadelphia I-81/78 Corridor Industrial Market
Through the first three quarters of 2024, just over 3.0M square feet of industrial space has delivered, marking the lowest volume of new deliveries since 2013. Meanwhile, absorption year-to-date has measured -324,952 square feet, leading to a 130-basis-point increase in vacancy rates since the first quarter. Over 3.8 million square feet of industrial inventory has delivered through the first three quarters of 2024, outpacing construction starts and leading to a continued decline in the construction pipeline. As of the third quarter of 2024, the annual average asking rent declined by 1.6%, following four years of historically high rent growth. Moderating demand, a surge in new supply, and a swift uptick in sublease availability have brought the current pace of rent change back in line with pre-pandemic era averages.