The PHL region experienced a vacancy decrease to 5.71% at the end of the Q3, which was a new record low for the market. Due largely to some notable built-to-suit deliveries, the market recorded over 4.2 million square feet in positive absorption during the quarter. Total absorption YTD has eclipsed 13.7 million square feet, which is an average quarterly pace of almost 4.6 million square feet. At this pace, the Philadelphia Industrial market could eclipse…
Monthly Download | Demand Update | September 2017
Demand for new, class A space is a major driver for the region’s construction activity. Our Industrial Demand report tracks industrial requirements across our entire market. As of the end of the third quarter, smaller requirements, 500,000 SF or less, outnumber larger requirements by almost two to one. While larger requirements are predominantly focused along the I-81 and I-78 transportation corridor that spans from the eastern edge of the Lehigh Valley to the southern border…
Monthly Download | Construction Update | August 2017
As we near the end of the 3rd Quarter, our industrial market is experiencing 21 million square feet in construction activity, with nearly 3.2 million square feet in new construction starts this quarter alone. The Lehigh Valley and Central Pennsylvania submarkets are leading this activity with 8.8 and 7.3 million square feet of development respectively. The I-81 and Southern New Jersey submarkets are also contributing 2.5 million square feet each of current construction. As of…
Monthly Download | Market Update | July 2017
The Philadelphia Market continued to grow in Q2 2017. Another 4 million SF was delivered to our Core Data Set (CDS), which now boasts over 425 million SF of industrial space across Eastern PA, Southern New Jersey, and Delaware. Our CDS focuses on industrial properties, 100,000 SF or larger, with a current design or adaptability to warehouse and distribution. Construction activity picked up in Q2. 5.8 million SF of speculative construction began in Q2, of…
Monthly Download | Demand Update | June 2017
Lee & Associates of Eastern Pennsylvania (LAEP), seeks to keep its finger on the pulse of our market by tracking our regional industrial requirements via our Industrial Demand report. As prospective tenants survey the market for their logistical solutions, LAEP diligently evaluates these requirements over the course of each quarter. As we near the end of Q2 2017, we are tracking roughly 94 active requirements for industrial space across the Philadelphia regional market. These requirements…
Monthly Download | Construction Update | May 2017
Q1 2017 ended with nearly 13 million square feet under construction. Lehigh Valley remained a leader in driving construction activity, leading the market in both the number of projects and total square footage. With 4.5 million square feet being constructed in seven on-going projects, six which are speculative starts, this spec construction activity will help refuel the submarket inventory that experienced a record breaking 2016. The first of these new deliveries are scheduled for the…
Monthly Download | Supply Update | April 2017
2016 was a memorable year for the Philadelphia industrial market. Within the Lee & Associates of Eastern Pennsylvania’s Core Data Set (CDS) , positive net absorption totaled over 17 million square feet across the market, which represented a 47% increase from 2015. Worthy of note in 2016, the Central Pennsylvania (PA) submarket, did not experience the same robust absorption totals quarter over quarter as did the rest of the overall Philadelphia market. However it was…
Monthly Download | Demand Update | March 2017
The movement of consumer goods, food, and freight is the pulse of an industrial market that boasts over 1 billion square feet of industrial space. The Philadelphia industrial market is recognized as one of the largest hubs of logistical real estate in the country. The existing transportation infrastructure of eight interstate highways, eight railroad terminals, four equipment depots and two ocean ports in combination with its geographical position connects this market to the broader Northeast…
Monthly Download | Construction Update | February 2017
Adding 20 million square feet in 2016, the Philadelphia industrial market ended the year with nearly 1.1 billion square feet of inventory. To bring this market into focus, Lee & Associates of Eastern Pennsylvania (LAEP) focuses on our Core Data Set (CDS) — specifically buildings 100,000 SF and greater. We also apply this criteria when tracking development and construction activity across the market.In 2016, Central Pennsylvania and the Lehigh Valley accounted for over half of…