Research

Strategic Investments Bring Jobs and Industrial Momentum to North Central PA Industrial Market Mechanicsburg, PA — July 2025 — North Central Pennsylvania’s industrial market continues steady, measured growth as new targeted investments bring employment and stability to this smaller, strategically located industrial corridor. Lee & Associates’ Q2 2025 Industrial Intel report shows overall industrial vacancy steady at 5.43% across 292 buildings totaling 52.4 million square feet, reflecting the deliberate pace of the region. Recent developments…

Mechanicsburg, PA — July 2025 — Vacancy in Eastern Pennsylvania’s industrial market held steady at 9.5% in the second quarter of 2025, according to Lee & Associates of Eastern Pennsylvania’s Q2 Industrial Intel report. Strong leasing activity across the region was the key factor stabilizing vacancy, with more than 9 million square feet of new leases signed. Leasing was particularly robust in Southern New Jersey (3 MSF), Central Pennsylvania (2 MSF), and Northeast Pennsylvania (1.5…

Mechanicsburg, PA — April 2025 — Lee & Associates of Eastern Pennsylvania has released its Q1 2025 Industrial Intel report, offering a data-driven snapshot of an industrial market in transition. Following an extended period of rapid expansion, the region has clearly entered the hyper-supply phase of the real estate cycle. Total square footage under construction dropped below 16 million square feet this quarter—down 46% from the same time last year, and a steep fall from…

Mechanicsburg, PA – January 2025 – Lee & Associates of Eastern Pennsylvania has released its Q4 2024 Industrial Intel report, highlighting the dynamics shaping the Greater Philadelphia Region logistics real estate market, which includes Central Pennsylvania, Lehigh Valley, Northeast Pennsylvania, Metro Philadelphia, Southern New Jersey, and Delaware. While the region continues to deliver new opportunities for tenants, increasing vacancy rates and an influx of speculative (SPEC) developments are exerting pressure on the market. When compared…

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…