Research

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…

The Philadelphia Regional Industrial Market experienced several trends consistent throughout each individual submarket including record breaking absorption, low vacancy rates and active construction levels. These trends put the market on a  trajectory for the strongest year ever. Throughout the third quarter, the Philadelphia Region recorded nearly three times the net absorption as the previous quarter  with 23.9 MSF quarterly absorption. Strong quarterly and YTD absorption has caused vacancy levels to drop to historic lows. Overall…

  The U.S. warehouse market is booming like the red-hot housing sector, as companies compete for scarce distribution space to meet surging e-commerce demand. The competition is driving up industrial rents as retailers and logistics providers race to move goods closer to population centers, with some engaging in bidding wars for the most coveted sites. Businesses are pushing to deliver online orders faster to the homes of digital shoppers and responding to growing consumer spending…

With interest rates at extremely lows levels and fears of rising inflation heating up, investors have flocked to real estate investment trusts (REITs) as an investment vehicle. Is it wise to do so, what is propelling this move, and what kind of performance should investors expect? This report will explain why there is a surge in demand for REITs and analyze how they are currently performing and how they have performed historically. 1 REITs are…