Research

Philadelphia, PA — November 7, 2024 — Lee & Associates of Eastern Pennsylvania has released its Q3 2024 Industrial Market Report, highlighting robust activity and notable trends across key submarkets in Eastern Pennsylvania. The region continues to demonstrate resilience with steady leasing activity, increased construction deliveries, and a balanced development pipeline. Key Highlights from Q3 2024: Declining Vacancy Rates Driven by Class A and B Leasing The Philadelphia region saw a 23-basis point drop in…

Philadelphia, PA, August 5, 2024 – Lee & Associates of Eastern Pennsylvania is pleased to announce the release of its Q2 2024 Industrial Market Report, providing comprehensive insights and analysis into the industrial real estate market across Eastern Pennsylvania and surrounding submarkets, including Southern New Jersey, Delaware, Northern Maryland, Northern Virginia, and Northern West Virginia. Key Findings: Overall Market Trends: Vacancy rates across the Philadelphia Region have risen for the second consecutive quarter, now approaching…

The Philadelphia Region’s Industrial market vacancy rate edged slightly higher in the first quarter of 2024. Vacancy rose 32 basis points to 6.25%, reflecting negative net absorption of 387,466 square feet (MSF) of space and 1.2 million square feet of unleased speculative construction deliveries. “While vacancy rates ticked up slightly, it’s important to note that overall demand for industrial space in the Philadelphia Region remains healthy,” said Heather Kreiger, Regional Research Director for Lee &…

PHILADELPHIA REGION SNAPSHOT 5.43% Vacancy 605,126,017 SF Standing Stock 5,987,667 SF Net Absorption 28,358,851 SF Under Construction     As expected, both Vacancy and Availability continued an upward trend in the wake of 14.2 MSF of newly delivered buildings, including nearly 8.9 MSF of unleased space. The effects were muted by 6.0 MSF of positive Net Absorption, including new I.0 MSF+ occupancies by Lowe’s, Jillamy, Amazon.com, and UNFI. Rolling Construction levels continued a 5-quarter decline…

PHILADELPHIA REGION SNAPSHOT 3.24% Vacancy 581,978,333 SF Standing Stock 10,507,353 SF Net Absorption 45,201,605 Under Construction Overall, the Philadelphia Region continues to be one of the strongest markets in the country. Vacancy increased 80 bps to 3.24%, reflecting a combination of new Construction Deliveries (15.3 MSF), Net Absorption (10.3 MSF), and some newly vacant second-generation space (836,000 SF). Rolling Construction levels are off 10% for the 2nd straight quarter, down 10.9 MSF from their Q2’22…

Lee & Associates of Eastern Pennsylvania Q2’22 data represents an increase of 10.7 million square feet of net absorption for Q2’22, with 56 million square feet under construction Mechanicsburg, PA (July 20, 2022) – The vacancy rate for warehouse/industrial space in the greater Philadelphia metropolitan region remained at a historic low of 1.99% during the second quarter of 2022, on the strength of more than 10.7 million square feet of net absorption, according to the…

The Philadelphia Regional Industrial Market booked 10.8 MSF of net absorption for Q1’22, more than twice the level recorded in Q4’21. The surge in leasing activity offset 9.2 MSF in new construction deliveries and had the effect of reducing marketwide vacancy to a new record low level of 1.96%. Active construction fell slightly to 46.7 MSF as a number of project starts were pushed back due to supply chain issues delaying the delivery of building…

  The Philadelphia Regional Industrial Market experienced 4.1 MSF of net absorption for Q4’21 as the market settled into structurally-low vacancy rates. Year-end total net absorption was a record-breaking 41.2 MSF, which combined with delayed construction schedules, contributed to historic-low vacancy rates. Vacancy dropped by 40 bps over the course of Q4’21; for CY 2021 vacancy was down by 423 bps. Over 33 MSF of new construction deliveries are projected for the first half of…

Evidence of the supply chain crisis we are facing is hard to miss. Right now, off the coast of Los Angeles, over 80 large container ships are sitting idle waiting to dock and offload their cargo. The ramifications of this and other bottlenecks in our global supply chain system have caused a backlog of nearly $3 billion in goods that have been ordered but not yet shipped, according to U.S. Census data. What caused this to…